ASX-listed fintech lender Wisr delivers 54% growth in loan originations
ASX-listed Wisr Limited have provided a market update for the quarter ending 30 September 2024 (Q1FY25).
The first quarter of FY25 highlighted Wisr’s commitment to growth, marked by a 54% increase in loan originations to $77.3 million (Q1FY24: $50.1 million).
Loan book:
- Loan originations of $77.3million, a 54% increase from Q1FY24 ($50.1million) and a 40% increase compared to the prior quarter ($55.2million), reflecting Wisr’s first full quarter of executing its return to growth strategy
- Secured vehicle loan originations increased by 67%, and personal loan originations increased by 49% compared to Q1FY24, underscoring the significant market opportunity for continued scaling
- Loan book of $753 million, reflecting a 15% decrease from $887M in Q1FY24, attributable to the deliberate moderated growth strategy implemented in FY24. The loan book saw a 2% decline compared to the previous quarter
- Loan book average credit score remained strong at 7822 (Q1FY24: 780)
- 90+ day arrears of 1.40%, an improvement from Q4FY24 (1.58%), reflecting the continued credit strength of the loan portfolio and the impact of improved collections processes
- Net losses of 2.06%, a reduction of 69 bps from Q4FY24 (2.75%)
Operations:
- Portfolio yield 11.12% (Q1FY24: 10.33%), front book (Sep-24 run rate) yield 12.76% (Sep-23: 12.68%)
- Portfolio Net Interest Margin (“NIM”) 5.64% (Q1FY24: 5.35%), front book (Sep-24 run rate) NIM 6.47% (Sep-23: 5.69%)
- Quarterly revenue decreased to $22.5 million (Q1FY24: $24.3 million) due to the reduction in loan book during previous moderated growth settings
Funding and capital:
- Unrestricted cash of $23.7 million, a 17% increase on Q1FY24 ($20.3 million)
- Two warehouse facilities are in place to support originations with a total commitment value of $650 million and an undrawn capacity of $194 million
- Both warehouse facilities were renewed in the quarter with improved pricing
- From the $50 million corporate facility announced in May-24, a further $15 million remains available to fund the Company’s ongoing growth plans
Customer:
- Wisr has facilitated the payment of $33.1 million in extra loan repayments and $9.5 million in round ups on customer debt
Andrew Goodwin, Wisr Chief Executive Officer, said, “We are delighted to deliver our first full quarter of growth since pivoting from moderated growth settings in FY24. These results were headlined by a significant increase in loan originations to $77.3 million, reflecting a 54% increase from the prior corresponding period.”
“Maintaining the prime quality of Wisr’s loan book was a focus during this period, and we were pleased to see improvements in yield while maintaining a strong average credit score of 782. Our continued work enhancing collections processes reduced 90+ day arrears to 1.40%, down from 1.58% in the previous quarter. In addition, we saw a reduction in net losses to 2.06% from 2.75% over the same period.”
“Looking ahead, as we focus on growing loan originations and our loan book in FY25 and beyond, we are encouraged by significant improvements in our unit economics. Notably, portfolio yield increased by 79 bps to 11.12% (vs. pcp), led by key pricing initiatives on the front book. The uplift in yield, combined with improvements in warehouse facility pricing, increased our front book NIM by 78 bps to 6.47% (vs. pcp), positioning the company strongly to continue growth while scaling the business towards profitability and a self-sustaining capital position,” concluded Goodwin.
