Shares in fintech lender, Plenti Group advance on Tuesday after it provided a trading update for the September quarter which saw the company deliver 140% year-on-year growth, as well as bring forward the expected timing for achieving its previous guidance targets.
Using smart technology, Plenti aims to provide faster, fairer loans to customers. The company achieved record quarterly loan originations of $256.4 million in the second quarter of FY22, 140% above the PCP and 18% above the prior quarter. A new monthly record of $95.5 million in loan originations was set in September, representing 159% growth versus September 2020, which at that time represented a record month for loan originations.
All of the company’s lending segments achieved a record quarter of loan originations:
Automotive loan origination growth reflected continued gains in market share, driven by Plenti’s on-going investments in technology and product development, and sales and distribution capabilities;
Renewable energy finance growth was driven by the continued adoption by referral partners of Plenti’s buy-now-pay-later offering, as well as the accreditation of an additional 50 commercial partners; and
Personal lending growth of 136% versus PCP showed the resilience and depth of Plenti’s multi-channel customer reach and digital distribution capabilities, and also reflected the comparable quarter in FY21 being impacted by COVID-19 related factors.
Plenti noted that importantly, this strong loan origination growth was achieved without compromising credit quality. The weighted average new borrower Equifax credit score during the quarter was 828, equal to the portfolio weighted average score of 828 at the end of June 2021. This was despite Plenti’s loan portfolio increasing to $915 million at 30 September, up 110% from 30 September 2020 and up 21% from the end of June 2021.
As a result of the exceptional performance, Plenti brought forward the expected timing for achieving two of its financial priorities set out in its FY21 results presentation. It now expects to achieve a $1 billion loan portfolio by the end of December 2021 (previously by March 2022); and it also expects to achieve positive monthly Cash NPAT by the end of December 2021 (previously by June 2022), assuming consistent credit performance.
Commenting on the record quarter, Daniel Foggo, Plenti’s Chief Executive Officer, said: “I am delighted to report yet another outstanding quarter for Plenti, with record quarterly loan originations across each lending vertical. By continuing to take market share, Plenti has achieved strong growth despite COVID-induced lockdowns. This strong growth along with the high level of operational leverage from our technology-led business model has accelerated our targeted timeframes for achieving a one-billion-dollar loan book and reaching Cash NPAT profitability, now targeted by end December 2021.”