Plenti loan portfolio up over 20% YOY

According to Plenti, its loan portfolio remains diversified across its three lending verticals (automotive, renewable energy, and personal loans).

The lender revealed that contributions from renewable energy continued to increase over the quarter, as its GreenConnect platform, built traction.

Additionally, Plenti’s loan originations for the March quarter totalled $286 million, up 4 per cent on the previous corresponding period and were “broadly in line” with the $290 million in loan originations recorded in the December quarter of 2023.

This comes as the lender maintained its focus on optimising across loan origination volumes, loan net interest margins, and portfolio credit characteristics in a typically lower volume quarter.

Across its three verticals, automotive loan originations were $144 million, up 13 per cent on the same period last year, but down 6 per cent on the December quarter.

Meanwhile, Plenti’s renewable energy loan originations were $41 million (up 15 per cent YOY) and down 2 per cent on the prior quarter, while personal loan originations were $101 million, down 10 per cent on the March quarter of 2023.

According to the lender, the drop in personal loan originations reflected tightening in its credit appetite through the last year; however, it still maintained 5 per cent growth on the prior quarter.

Plenti’s chief executive Daniel Foggo said on the quarterly results: “Our focus over the quarter was delivering on our full year objectives, while laying strong foundations across the technology and operational processes required for the upcoming ‘NAB powered by Plenti’ car loan launch.

“By delivering on our objectives we have continued to differentiate Plenti compared with other lenders in each of our diverse lending markets.”

NAB partnership

Indeed, Plenti announced in November 2023 an alliance with NAB that opened up Plenti’s own branded finance solution to the major bank’s personal banking customer base.

Under the agreement, both lenders entered an equity investment agreement that can allow NAB to acquire up to 15 per cent of Plenti’s share capital via placements and market purchases, based on the “achievement of certain milestones”.

The first product, a “NAB powered by Plenti” car and EV loan, is still on track to be delivered to customers by the end of the June quarter of 2024, according to the lender.

“We enter our FY25 financial year excited about our ability to drive strong operational and financial results in our existing lending channels, while also delivering on exciting new growth initiatives including the ‘NAB powered by Plenti’ car loan,” Foggo said.

Arrears are up

Plenti further reported that 90-plus day arrears were 58 bps at the end of the quarter, compared to the end of the December quarter at 46 bps.

According to the lender, period end arrears were impacted by the end of March coinciding with the Easter holiday weekend, with “consequent disruption and delay of some bank payments processing”.

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