Wisr loan book rises 47% over financial year

According to the lender’s latest figures for FY22, ended 31 December 2021, Wisr’s loan book had an upswing of over 47 per cent, moving from the $384 million recorded at the end of FY21 to $565 million. 

Compared to the H1 FY22, this new sum also marked a 169 per cent year-on-year increase for the lender’s loan book. 

Similarly, loan originations reported a consistent uptick over the same period, elevating by almost 44 per cent from $611 million to $879 million. 

According to Wisr, this figure also marked the 22nd consecutive quarter of origination growth.

Further, the figure also reflected the non-bank’s focus on personal and vehicle loans. 

“During the financial half-year, the group’s primary activity was writing personal loans and secured vehicle loans for three, five and seven-year maturities to Australian consumers, and funding these loans through the warehouse funding structures,” the interim report stated.

This increase in loans is mirrored by a rise in revenue, with Wisr reporting a total figure of over $26.2 million at the end of H1 FY22. Compared to the revenue reported 12 months ago, this reflected a revenue growth of 163 per cent. 

The report also noted that Wisr’s cash earnings before taxes, depreciation, and amortisation were at a loss of $3.8 million. 

This loss was marginally improved by a positive cash EBTDA of $400,000 recorded during the December quarter. 

The report stated that this figure, coupled with the company’s “maiden positive operating cash flow”, was driven by the increases in revenue and loans.

Wisr chief executive Anthony Nantes, commenting on the results, said that Wisr is on track to deliver on its “short-term target” of a $1 billion loan book. 

“We’re aggressively growing market share with an innovative business model that’s more than just lending, giving us multiple levers for growth in H2FY22 and beyond,” Mr Nantes said. 

Mr Nantes added that Wisr is well prepared for the eventual rise of the cash rate, stating the lender can “absorb any anticipated bank bill swap rate changes with the hedging that [Wisr has] in place with no impact on the existing loan book”. 

“Going forward, we have multiple levers to preserve an attractive net interest margin on new originations, even in a rising interest rate environment.”

In a statement supplied to The Adviser, Mr Nantes said that the non-bank has long had its “primary focus for the company on supporting and servicing the now over 10,000 brokers around the nation who are part of the Wisr network”, adding that the lender plans to continue growing its broker channel footprint.

“We know that both brokers and their clients who work with Wisr are always more than satisfied by the results, and we intend to continue to invest in, and support brokers in Australia as this channel remains our key focus for growth.”

[Related: Wisr confirms new executive additions]