Plenti hits record quarterly originations

There had been a record level of $321.9 million in loan originations, 5 per cent more than the previous quarter and 87 per cent higher year-on-year.

Plenti reported that its originations were “robust” through January and February despite the usual seasonal impacts, while it managed to achieve a monthly high of $124.6 million in loan originations during March.

Daniel Foggo, chief executive of Plenti, commented the group had also managed to hit “significant funding milestones”.

“We are excited about the year ahead, with our team focused on leveraging our proprietary technology to execute our program of product innovation and efficiency initiatives, whilst continuing to profitability take market share in each of our three key lending verticals,” Mr Foggo said.

Across the segments, Plenti’s automotive division had seen a 151 per cent rise in originations year-on-year, to $203 million worth. It closed the quarter with $745 million in its loan portfolio, almost tripling from the year before (up 182 per cent).

Loan originations for the renewable energy business were up by 59 per cent, with $23.9 million during the March quarter. It ended the period with $142 million in its loan book, up by 65 per cent year-on-year.

However, Plenti’s renewable energy lending had been impacted by the high levels of rain through Queensland and NSW – which restricted household solar and battery installations.

The personal lending arm managed 24 per cent growth, to $94.9 million. Its loan book finished March on $413 million.

The group completed a $280 million ABS (asset-backed securities) transaction in February, which it said reduced funding costs on the underlying receivables and freed capacity in Plenti’s renewable energy and personal loan warehouse facility.

It had also entered into a corporate debt facility agreement with an Australian funder in March, to provide capital for its growth. The facility was initially drawn to $18 million.

However, growing expectations of central bank rate increases saw Plenti experience rises in funding costs on new loan originations during the quarter.

The company stated it had countered the raised funding costs with increases in borrower rates and that it expects pricing to continue to increase over coming months as the market adjusts.

Plenti has previously flagged that it has ambitions to hit a $5 billion loan book in the next few years, with brokers to play a key role.

[Related: Wisr surpasses $1bn in loan originations]