Plenti sees significant growth and hits $1 billion loan portfolio

Plenti sees significant growth and hits $1 billion loan portfolio

ASX-listed fintech Plenti has announced its half-year results for the six months ended 30 September 2021 (1H22), with significant milestones achieved post half-year end, including:

– Record half-year loan originations of $473 million, up 183% on prior comparable period (PCP)
– Record loan portfolio at half-year end of $915 million, up 110% on PCP
– Record half-year revenue of $37 million, up 43% on PCP (interest income up 53%)
– Cash NPAT of $(2.2) million, a 56% improvement on 2H21
– Market-leading credit performance, with 0.7% net realised loss rate
– $306.3 million inaugural asset-backed securities transaction, significantly reducing funding costs
– $1 billion loan portfolio reached in November 2021
– Launched specialist EV loan

Commenting on the half-year result, Daniel Foggo, Plenti’s Chief Executive Officer, said, “This was an outstanding half for Plenti. We grew strongly and evidenced our operational leverage, which set us up to achieve profitability in the second half.

“As an Australian fintech lending pioneer, being the first listed fintech to achieve a $1bn loan portfolio is a significant milestone on our mission to build Australia’s best lender. It shows that our technology-led offering is resonating with our partners and customers.

“Looking forward, the momentum in our business gives us the confidence to express our ambition of reaching a $5 billion loan portfolio in 2025, noting our loan portfolio would grow approximately 150% by end 2025 even if our monthly originations ceased growing from this month onwards.

“We continue to see exciting opportunities to extend our technology advantages and develop market leadership in the automotive, renewable energy and personal loan markets.”

Loan originations and loan portfolio growth

Plenti achieved strong loan origination growth in the first half, with loan originations of $473 million, up 183% on PCP.

Growth was particularly strong in automotive finance, where annual loan originations of $258 million were up 218% on PCP. Renewable energy originations of $46 million were up 63% on PCP. Personal lending grew to $169 million, up 194% on PCP.

Plenti’s total loan portfolio grew to $915 million at 30 September 2021, up 110% on PCP, comprising $464 million in automotive loans, $114 million in renewable energy loans and $337 million in personal loans.

Foggo ended with, “Plenti has continued to perform strongly in the start of the second half year, with the Company on target to fund over $100 million in November. Looking forward, we have a significant growth opportunity in front of us, and we have a clearly defined strategy for achieving our objective of building Australia’s best lender.”