Investor Presentaiton
Profit and loss
Year ended
Year ended
30 June 2023
$'000
30 June 2022
Change
Change %
$'000
Interest income
Other income
Total income
Interest expense
Incurred credit losses
Risk adjusted income
105,539
68,943
36,596
53%
1,534
3,877
(2,343)
(60%)
107,073
72,820
34,253
47%
39,824
18,122
21,702
120%
24,552
10,611
13,941
131%
42,697
44,087
(1,390)
(3%)
Movement in expected credit loss provision
7,827
14,856
(7,029)
(47%)
Risk adjusted income after expected credit loss provision
34,870
29,231
5,639
19%
Customer acquisition expenses
12,316
20,716
(8,400)
(41%)
Net operating income
22,554
8,515
14,039
165%
Personnel expenses
10,993
9,809
1,184
12%
Share based payment expenses
1,937
2,744
(807)
(29%)
Customer servicing expenses
6,174
5,166
1,008
20%
Technology expenses
4,816
4,179
637
15%
General and administrative expenses
3,670
4,042
(372)
(9%)
Depreciation and amortisation expenses
2,545
1,349
1,196
89%
Operating expenses
30,135
27,289
2,846
10%
Profit/(Loss) before income tax
(7,581)
(18,774)
11,193
60%
Income tax (expense) / benefit
n/a
Profit/ (Loss) after income tax
Non-cash adjustments
(7,581)
(18,774)
11,193
60%
Movement in expected credit loss provision
Share based payment expenses
Depreciation and amortisation expenses
Cash NPAT 1
7,827
14,856
(7,029)
(47%)
1,937
2,744
(807)
(29%)
2,545
4,728
1,349
175
1,196
4,553
89%
>500%
1 Cash NPAT provides a more accurate representation of the underlying profitability of the business, adjusting for the impact of non-cash items, most significantly the movement in expected credit loss provision of $7.8m in FY23, which is a non-cash provision for credit losses that may occur in future financial
years from the existing loan book. With GAAP requiring recognition of an expected credit loss provision expense immediately on origination of a new loan, without any indication of loan impairment and significantly ahead of recognition of the interest income priced to compensate for the expected level of
credit loss risk, the expected credit loss provision expense will suppress statutory net profit during periods of loan book growth, all other things being equal.
HARMONEY ©2023
FY23 INVESTOR PRESENTATION
25 AUGUST 2023
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