Overview of Prospa Group's half-year financial report

Prospa Group Limited (ASX: $PGL) has released its half-year financial report for the period ended 31 December 2023. The report, reviewed by independent auditors Deloitte Touche Tohmatsu, presents a statutory results summary, net tangible assets, entities over which control has been gained or lost, dividends, associates and joint ventures, and a review conclusion.

Executive commentary on financial performance and strategic initiatives

Prospa Group Limited, Australia and New Zealand's leading online lender to small businesses, reported a deliberate tightening of credit risk settings, resulting in a decrease in originations to $308.3 million for 1H24, down 27.4% from the prior corresponding period. The company's growth strategy focuses on scaling its credit product portfolio and delivering an all-in-one digitally enhanced experience for small business owners. Prospa continues to invest in technology to facilitate digital and real-time enhancements, drive greater operational efficiencies, and maintain a market-leading Net Promoter Score of 70+.

Summary of financial performance and outlook

Prospa Group's half-year financial report reflects a deliberate tightening of credit risk settings, resulting in a decrease in originations for 1H24. The company's growth strategy focuses on scaling its credit product portfolio and delivering an all-in-one digitally enhanced experience for small business owners. Prospa continues to invest in technology to facilitate digital and real-time enhancements, drive greater operational efficiencies, and maintain a market-leading Net Promoter Score of 70+. The company's outlook includes a continued focus on cost management, debt collection, and recoveries, as well as ongoing investment in product and technology to drive sustainable business growth.