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Wisr originations, loan book more than double over FY22

by Sam Nichols6 minute read

The non-bank has confirmed its June quarter figures, revealing that total originations lifted by $612 million over the 12-month period.

As highlighted in Wisr’s figures, the three months to 30 June concluded with $186 million worth of loan originations, bringing the lender’s total origination figure to $1.2 billion. 

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Wisr has said this quarterly origination result was a 51 per cent boost from what was reported during the preceding March quarter ($158 million) and marked the 24th consecutive month of origination growth from the lender. 

This figure also reflected that Wisr’s total originations more than doubled over the 2022 financial year, lifting from the $611 million reported at 30 June 2021.

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Similar momentum upwards was observed in the non-bank lender’s loan book, which grew by $117 million over the quarter, and by $396 million over last financial year, to reach $780 million. 

According to Wisr’s figures, this accounts for a yearly lift of 106 per cent. 

These results came during the same financial year that saw Wisr settle its second asset-backed securities transaction as well as being named to the panels of Nodifi, FAST, PLAN Australia and outsource Financial

The non-bank also said earlier during the financial year that its lifting originations and loan book reflected its new focus towards both personal and vehicle lending

Secured vehicle loans were reported as contributing $86 million to Wisr’s fourth quarter origination figure, according to these latest results.  

Revenue was reported as increasing by 81 per cent, from $9.7 million to $17.6 million, over FY22. 

Quarter-on-quarter, this revenue figure accounted for a lift of around 13.5 per cent. 

However, cash earnings before taxes, depreciation and amortisation (cash EBTDA) was also reported to be tracking downwards. 

Between the December and June quarters, cash EBTDA is reported to have fallen from $1.3 million to a loss of $2.3 million. 

This figure in the September quarter of FY22 was $-5.5 million. 

Wisr has said this loss was driven by a “combination of yield compression due to secured vehicle loan scale, higher funding costs and an increase in opex”. 

Speaking of the quarterly results, Wisr chief executive officer Anthony Nantes said that the lender’s focus for the future is set “firmly on moving through breakeven and into sustainable profitability”. 

“Our credit decisions and products are prime-skewed to bank-grade customers. As we did in COVID-19, we’re well prepared to navigate market conditions with early warning indicators already in place to respond quickly and tighten credit while also investing in our collection processes,” Mr Nantes said. 

Mr Nantes later noted that the non-bank “has never been better positioned to accelerate” its operating leverage and scale. 

“As consumers demand fairer financial products and services due to cost-of-living pressures and a rising rate cycle, Wisr is well-placed and well-resourced to meet demand,” Mr Nantes added. 

“We’re well-capitalised and building sustainable revenue.

“Reductions in operating costs are being put in place as we enter FY23 and surpass our near-term target of a $1 billion wholly-owned loan book and delivering a highly profitable business in the medium term.” 

Find out more about Wisr and the personal loan market in the July edition of The Adviser, out now.

[Related: UP CLOSE AND PERSONAL - Wisr]

Wisr originations, loan book more than double over FY22
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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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