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Plenti quarterly loan originations at record high

by Malavika Santhebennur6 minute read
Plenti quarterly loan originations at record high

The non-bank lender has reported record quarterly loan originations in Q4 FY21, attributing it to growth across each of its three lending verticals.

Listed lender Plenti – formerly known as RateSetter – has provided a trading update for the March quarter, and reported that it has achieved record quarterly loan originations of $172.4 million in the fourth quarter of the 2021 financial year (Q4 FY21).

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This is a 120 per cent rise from the prior corresponding period (PCP) and 32 per cent above the prior quarter, according to the lender.

It also reported March loan originations of $67.5 million, which it said represented growth of 174 per cent over the prior corresponding period.

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Plenti said that it recorded growth across each of its three lending verticals, with automotive lending up 306 per cent on the prior corresponding period, and 18 per cent on prior quarter, which it said reflected continued market share gains.

Personal loan originations rose by 64 per cent on the prior corresponding period and 57 per cent on the prior quarter, according to Plenti.

“The personal lending performance was particularly pleasing, representing record quarterly originations and a strong return to growth following the COVID-induced lows in prior quarters,” Plenti said in its update.

Meanwhile, renewable energy lending was up 24 per cent on prior corresponding period, and 10 per cent on prior quarter.

Plenti’s outstanding loan portfolio balance increased to $615 million at the end of the quarter, up 61 per cent on 31 March 2020, and up 21 per cent over the quarter.

The loan portfolio at period end comprised $264 million in automotive loans, $86 million in renewable energy loans, and $264 million in personal loans.

Earlier this year, Plenti reported that in the three final months of the 2020 calendar year, the group originated $130 million in loans, which was 58 per cent above the prior corresponding period and 22 per cent above the prior quarter.

The lender’s total loan portfolio increased to $508 million (as at 31 December 2020), having grown by 46 per cent since 31 December 2019.

Plenti’s loan deferrals have reached to below pre-COVID-19 levels, comprising 0.21 per cent of the loan portfolio at 31 March 2021, down from 0.44 per cent at the end of the December quarter, the lender reported.

Annualised net losses for the quarter were below 1 per cent, which Plenti attributed to the prime attributes of its loan portfolio, strong underlying borrower characteristics, and the broader macroeconomic environment.

The lender reported that arrears 90 days and over declined to 0.31 per cent of the loan portfolio from 0.33 per cent at the end of the December quarter.

Plenti recently increased the limit of its secured automotive loan warehouse facility from $275 million to $350 million during the quarter (as announced in March).

The lender stated in its update that it expects to upsize its personal and renewable warehouse in the coming quarter.

It said that it had over $160 million of available funding headroom across its two warehouse facilities as at 31 March 2021.

Additionally, it maintains two investor marketplace platforms, which it said assists with providing further funding flexibility, capacity and diversity.

Plenti recently launched a buy now, pay later zero-interest payment plan for renewable customers, with the finance option for the installation of residential renewable energy technology such as solar panels and batteries allowing home owners to make up to 72 interest-free monthly payments.

The lender said in its trading update that it is developing its next credit decision and pricing model, for which it said it will leverage machine learning analysis of over 75,000 loan applications received by the company.

[Related: Plenti sets up $100m green warehouse facility]

Plenti quarterly loan originations at record high
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Malavika Santhebennur

Malavika Santhebennur

AUTHOR

Malavika Santhebennur is a content specialist at Momentum Media, focusing on mortgages and finance writing.

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