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Lender reports 281% rise in loan originations

by Reporter4 minute read

Personal loan lender Wisr has reported a 281 per cent increase in loan origination value in FY19 compared to the year before, totalling $68.9 million.

While the unsecured personal loan specialist has not yet released its financial information for FYI to the market (expected later this month), it has revealed that its unaudited results for the three months ending 30 June 2019 show that loan origination rose by 281 per cent in the financial year, clocking in at around $68.9 million.

The second half of FY19 saw a particularly strong performance, the lender said, with originations of more than $40 million (a 215 per cent increase on the same period in FY18) and an increase of 38 per cent on the first half of the year.

For the three months ending 30 June 2019, new loan originations totalled $21.9 million.

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The figures show that its 90+ arrears rate at 30 June 2019 was 1.55 per cent across its entire loan book.

In total, the personal lender has originated $108.8 million in loans.

The new figures also show that the lender’s Net Promoter Score (NPS) was at “the highest levels historically”, at +74 for the quarter. This was largely driven by a high NPS score for the broker channel, which achieved an NPS of +71 compared to the direct business’ score of +64 for FY19.

While the lender noted strong loan performance, it also revealed that it would be reporting a $7.3 million loss before tax, an 18 per cent increase on the prior year due to “investment into the highly differentiated Wisr business strategy”, including employment costs.

The loss does not include fees related to its capital raising or long-term incentives.

Anthony Nantes, Wisr’s CEO, noted that the quarter “continues a run of record-breaking numbers for Wisr” and marked the 11th consecutive quarter of growth for the lender since its rebrand from DirectMoney.

Mr Nantes also noted the “remarkably rapid progress” of its financial wellness suite, which he said made it “clear that the Australian public has embraced [its] vision to deliver financial wellness as a purpose-led business”.

While the lender announced a new agreement with Smartgroup last week, it is also reportedly in late-stage launch planning with health insurance provider HCF and “a major retail superannuation fund”. 

It also announced that it was in “advanced discussions” with three new funding partners to provide debt capital to its loan book.

[Related: Wisr books 441% growth in loan originations]

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