I would call it a promising result. Turning the lending tap off after covid first hit our shores (a mistake in hindsight) really slowed the book growth for FY21. Looks like the chairman took the blame for the com com fine? The new chairman has strong regulatory knowledge..

The marketing spend in Aussie has been (as expected) quite high:
$7.8M for originations of AUS$120m
vs NZ of $8.6m for originations of NZ$318.9m.

Marketing spend to originations ratio is 6.5% for Aussie and 2.7% for NZ.. only natural that the Aussie ratio will fall in line with that of NZ overtime.

Employee expenses up an incredible 42%. Put down to new developers for the launch into Aussie.

Gee the Aussie side of the business really is sucking up the cash. Guess that is how you get 75% originations growth from Q3 to Q4.. The old saying you got to spend money to make money comes to mind.

Impairment expense to loan portfolio has improved from 4.8% FY20 to 3.9% FY21. This for me is the most important thing. If they can keep fine tuning the libra scorecard so that the ratio drops lower and lower that will be a huge competitive advantage. This combined with an automated loan application system and the banks will continue to bleed the A+ consumer credit customers. A good target would be impairment expense to drop below 2% of the portfolio and fully automated end to end loan applications over 80%.

As long as the book rapidly grows and impairment expense ratio drops all is well, seems simple aye.
It will mean the automation is working and the libra scorecard is working.
The rest will fall into line, the cost of funds will fall, marketing expense ratio will fall, employee expense ratio will fall etc because of economies of scale etc.

One last note, they highlight fintech and all this customer financial data they hold. Not sure how that can be used with new products but data is quite valuable in this world. Think I read they hold more financial data than any fintech in Aussie? Did I read that? That would mean more than afterpay? That's cool.