Q3 ‘Eclipses’ Peak Seasonal Trade, humm Reports

Power Retail By Power Retail | 13 May 2021

humm has delivered its Q3 update, reporting ‘strong’ growth and ‘eclipsing’ peak seasonal trade, typically seen in December.

Its March 2021 transaction volume is reported at $100.8 million, with Q3 volume of $255.3 million -s up 33 percent on PCP. Furthermore, humm’s commercial and leasing volume is also up 61.7 percent on PCP to $142.2 million.

However, its card volume in Australia and New Zealand is down 26.5 percent on PCP, although the business noted that spend is returning to key volume categories.

“hummgroup has performed strongly with our bigger Buy Now Pay Later product – and the ability to finance larger ticket items over longer terms – continuing to be a key point of differentiation,” said Rebecca James, the CEO of hummgroup.

“The business delivered record transaction volume for our BNPL segment in March of $100.8m, eclipsing peak seasonal trade, normally reserved for December. The strong growth coincided with an improvement in net transaction margin driven by strong loss performance and low cost of funds.”

The total customer base for humm has also increased 40 percent to 2.7 million as of March 2021. This quarter, the BNPL platform has experienced 303.9k app downloads, compared to 215.4k in the same quarter in the year before.

“The Commercial and Leasing segment is growing rapidly, up 61.7 percent on PCP, driven by a superior service proposition which has the business gaining market share from the major banks,” shared James.

“Credit performance has also improved materially from the previous period. The business is significantly more capital efficient following the successful completion of a $450m Australian asset-backed securities transaction. Mezzanine warehouse funding is planned to further improve return on equity, in line with the initial recommendation of the strategic review.”

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