Wisr’s growth strategy delivers 77% increase in loan originations
ASX-listed Wisr Limited have provided a market update for the quarter ending 31 December 2024 (Q2FY25), with its growth strategy delivering a 77% increase in loan originations.
Wisr has delivered a strong second quarter for FY25, achieving a substantial 77% increase in loan originations to $93.5 million despite a seasonally slower quarter (Q2FY24: $52.9 million). The company has also returned to loan book growth following a period of moderated loan volume settings with the total loan book increasing in the quarter to $757 million (Sep-24: $753 million).
A key driver of this growth is the increasing proportion of secured vehicle loans in the portfolio. In addition, the strong credit quality of the book has delivered improved loan book performance, with net losses decreasing 34 bps to 1.72% (Q1FY25: 2.06%).
Loan book:
- Loan originations of $93.5 million, a 77% increase on Q2FY24 ($52.9 million) and a 21% increase on the prior quarter ($77.3 million), continuing the return to growth evidenced in the company’s Q1FY25 market update
- Secured vehicle loan originations of $39.1 million, a significant increase of 230% on Q2FY24 ($11.8 million) and personal loan originations of $54.4 million, an increase of 32% on Q2FY24 ($41.1 million)
- Closing loan book of $757 million, a $3.5 million increase on Sep-24, marking the first quarter of loan book growth after a period of moderated loan volume settings
- Loan book average credit score increased to 798 (Sep-24: 795), led by a significantly higher front book (Dec-24 run rate) credit score of 832 (Sep-24: 800) due to the large contribution of high-quality secured vehicle loans
- 90+ day arrears of 1.55%, a seasonal increase from Sep-24 (1.40%) and well within risk appetite
- Net losses of 1.72%, a reduction of 34 bps from Q1FY25 (2.06%), highlighting the continued strength of the company’s loan portfolio credit quality
Operations:
- Portfolio yield 11.20% (Q1FY25: 11.12%), front book (Dec-24 run rate) yield 11.03% (Sep-24: 12.76%) as a result of the increased mix of high-quality secured vehicle loan originations in the quarter, particularly in Dec-24. Front book yield for Jan-25 MTD has increased by circa 50 bps, illustrating the variability in yield and mix from month to month
- Portfolio Net Interest Margin (“NIM”) 5.93% (Q1FY25: 5.64%), front book (Dec-24 run rate) NIM 4.96% (Sep-24: 6.47%) driven by an increase in high-quality secured vehicle loan mix in the Dec-24 cohort. This shift is expected to further reduce losses, aligning with the improved credit quality of these loans
- Quarterly revenue increased to $22.8 million (Q1FY25: $22.5 million) due to the improvement in portfolio yield
Funding and capital:
- Unrestricted cash of $17.9 million, a decrease on Dec-24 ($19.9 million)
- Two warehouse facilities are in place to support originations with a total commitment value of $650 million and an undrawn capacity of $153 million
- From the $50 million corporate facility announced in May-24, a further $15 million remains available to fund the Company’s ongoing growth plans
Andrew Goodwin, Wisr’s Chief Executive Officer, said, “Wisr’s continued focus on growth is evident in our latest market update. Driven by a significant increase in loan originations to $93.5 million and growth of our loan book to $757 million, these strong results highlight the business’ dedication towards supporting even more Australians in reaching their financial and personal goals.”
“Alongside this growth, our portfolio NIM increased to 5.93% and net losses decreased for the second consecutive quarter to 1.72% from 2.06% and 2.75% in Q1FY25 and Q4FY24 respectively. The prime quality of Wisr’s loan book continues to improve with our average credit score increasing to 798.”
“As we conclude the first half of FY25, our focus remains on accelerating loan origination growth and building our loan book at attractive loan unit economics while prioritising profitability and maintaining a strong balance sheet,” concluded Goodwin.
