The rollout of Harmoney Corp’s (ASX: HMY) new Stellare 2.0 customer platform, combined with a $783 million loan book, has delivered a cash net profit after tax of $2.3m for the first six months of the 2025 financial year.

The figure represents growth of more than 350% on the previous corresponding period and is the sixth consecutive period of positive net profit for the online direct personal lender.

Statutory net profit after tax was $2m, while a cash return on equity of 13% places the company on track to achieve a 20% run rate during the second half.

New loan originations

Australian new customer loan originations grew by more than 43% during the period, with total loans from this market now accounting for 57% of the group’s book.

The company expects its rollout of the platform to the New Zealand market in the second half to further boost originations.

Harmoney’s overall loan book grew by more than 4% during the half to $783 million, with the Australian loan book up 14%, partially offset by a 6% decline in the New Zealand book.

“With inflation in New Zealand already comfortably back within the Reserve Bank’s target range, the official cash rate easing cycle is well underway and is expected to feed through to stronger economic conditions and demand in the New Zealand market,” the company said.

Risk-adjusted income

New business net interest margin (NIM) remained at 10% through the half, driving the group’s overall loan book NIM to 9%, up from 8.8% at the same time last year and back within the target range of 9% to 10%.

Loan book credit performance also continued to improve, with incurred credit losses declining to 3.7% from 4.2% last year, while 90+ day arrears remained low at 0.64%.

Improving NIM and credit losses have collectively increased Harmoney’s risk-adjusted income to 5.3%, within the target range of 5% to 6% and significantly higher than the 4.8% recorded last year.

Forecast guidance

Harmoney’s smooth transition to Stellare 2.0 in Australia, its strong performance in the domestic market, the strength of its loan book and operational metrics and a stabilising economic environment, have all reinforced confidence in its profit and equity return forecast.

The company expects the full 2026 financial year to deliver a cash net profit after tax of more than $10m and a cash return on equity of more than 25%.

This is underpinned by a total warehouse capacity of over $900m, plus $21m in unrestricted cash and $7.5m in undrawn corporate debt.