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Prospa loan book boosts by 64% over FY22

by Sam Nichols6 minute read

The non-bank has reported year-on-year lifts in its loan book, originations and revenue, citing brokers as having an “integral role” to these results.

According to these latest results, Prospa Group Limited (Prospa)’s closing loan book at the final quarter (30 June) of financial year 2022 was $701.3 million. 

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Compared to the preceding quarter ($583.6 million), this result marked a bump of 20 per cent. 

However, it also marked a 64 per cent increase to the $427.1 million the non-bank reported 12 months earlier. 

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Average gross loans were said to have hit $633.4 million for the quarter, increasing quarter-on-quarter by 16 per cent.

This momentum upwards over FY22 was also reported in total originations across Australia and New Zealand. 

As highlighted by these results, between the final quarters of FY21 ($182.5 million) and FY22 ($245.7 million), Prospa’s total originations across the countries lifted by 35 per cent – its highest-ever quarter for originations.  

This trend upwards is particularly significant considering that, over the third quarter of the financial year, this figure fell by over 7 per cent from $186.6 million to $172 million. 

Further, Prospa has said that, over June, its total origination figure was $104.6 million – the highest that the lender has ever reported over a single month. 

The lender has stated that, over the fourth quarter of FY22, it “observed significantly higher demand for funds from small businesses” across both Australia and New Zealand. 

Speaking of the figures, Prospa co-founder and chief executive, Greg Moshal, commented that the lender is “incredibly pleased with the momentum and outcomes the team has achieved”. 

“Each quarter this year, they’ve come back with greater enthusiasm. Their hard work has translated to record-breaking results, including the $104.6 million originations in June,” Mr Moshal said. 

However, Mr Moshal added that brokers were also an essential contributor to this yearly growth. 

“Brokers, financial advisors and aggregators play an integral role in the achievement of Prospa’s results, you’ve all placed great trust in our products and worked hard to advocate them to your small business clients,” Mr Moshal said. 

“It gives us great satisfaction to know that our funding solutions are supporting small business owners to achieve their business goals. 

“The success stories reaffirm our commitment to keep small business moving, and stay focused on closing the funding gap for small business as a strategic priority.”

Prospa has also said that its active customers grew by 35 per cent in the year to 30 June 2022, rising to 16,100 people. 

Further, the non-bank’s revenue is said to have increased year-on-year by 61 per cent to $53.9 million, while its earnings before interest, taxes, depreciation, and amortisation (EBITDA) reached around $12 million. 

Prospa has said its EBITDA figure was the result of a “continued focus on technology through digital and real-time enhancements”.

Prospa chief financial officer, Ross Aucutt, said that this focus on its technological capabilities, and credit decision engine, supported these results over the quarter. 

Mr Aucutt added: “We are financially well positioned to support the ever-increasing demand for funds, with continued investment in scaling our funding products, executing prudent decision-making for our growth prospects despite uncertain macroeconomic conditions across Australia and New Zealand.”

[Related: Brokers reveal which non-banks are leading the way]

Prospa loan book boosts by 64% over FY22
greg moshal propsa
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greg moshal propsa

Sam Nichols

Sam Nichols

AUTHOR

Sam Nichols is a journalist at The Adviser and Mortgage Business. His reporting has featured in a range of outlets including ABC News, SBS' The Feed, and VICE.

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