Plenti’s loan portfolio increases by 69%

Plenti Group Limited (Plenti) has released its results for 1H23, revealing that its diversified loan portfolio grew to $1.55 billion as of 30 September, an increase of 69 per cent on the previous corresponding period (pcp) as well as 19 per cent above prior half of the year (31 March 2022).

Additionally, despite material borrower rate increases, the non-bank lender’s half-year loan originations hit $558 million, rising 18 per cent above pcp.

Total revenue for Plenti was also up 71 per cent pcp to $63.8 million, which was driven by loan portfolio growth and higher rates being passed on to borrowers over the last 12 months.

Earlier this year, the group saw its portfolio increase 11 per cent from $1.3 billion to $1.44 billion over the three months to 30 June, along with a 90 per cent year-on-year increase in its portfolio. Plenti attributed this rise to a lift in auto lending at the time.

These results marked a 274 per cent increase when compared to the June 2020 quarter’s portfolio sum.

Since then, Plenti has hit $3 billion in total loans funded since its founding in 2014 and $1 billion in total loans funded by investors through the Plenti Lending Platform that saw a renewed focus during this half. The retail investment platform reportedly attracted over 26,000 investors that led to the $1 billion milestone.

Furthermore, the lending group has completed a $437 million automotive loan asset-backed securities (ABS) transaction in June 2022, which brought its total ABS issuance following the inaugural transaction in August 2021 to over $1 billion.

CFO Miles Drury said at the time that the lender was pleased to be announcing the pricing of its automotive ABS transaction as it reflected the growth of its automotive loan originations.

Plenti chief executive Daniel Foggo commented on the group’s half-year result: “Not all lending businesses are the same — these results demonstrate Plenti’s clear competitive strengths.

“In line with our focus on protecting margins, we have successfully increased yields on new lending to offset higher funding costs, helping to drive a positive Cash NPAT result for the half-year.

“We continue to invest in extending our technology-led customer experience and efficiency advantages as we work towards achieving our mission of building Australia’s best lender.”

[RELATED: Plenti portfolio hits $1.44bn over June quarter]

Written by Adrian Suljanovic

Last Updated: 18 November 2022

Published: 21 November 2022