Strong credit supports profitable growth for Plenti

ASX-listed Plenti Group has provided this trading update for the quarter ended 30 September 2023 (2Q24).

Plenti’s loan portfolio, which is a key driver of revenue, increased to $1.99 billion at 30 September 2023, a 29% increase from 30 September 2022 and a 5% increase from 30 June 2023. A $2 billion loan portfolio was achieved in the first week of October 2023, after quarter end.

Loan originations for the quarter totalled $292 million, 9% above the prior comparable period (PCP) and 12% below the record loan originations achieved in the prior quarter.

Automotive loan originations were $154 million, up 10% on PCP, but down from the June quarter which benefited from strong commercial loan originations at June financial year-end.

Renewable energy loan originations reached a record of $40 million, up 39% on PCP and 12% above the prior quarter, supported by the continued market adoption of Plenti’s unique GreenConnect platform. Personal loan originations were $98 million, down 2% on PCP and 19% on the prior quarter, primarily reflecting refinements in Plenti’s credit appetite, driven by its focus on delivering stable credit outcomes.

Commenting on the quarter, Daniel Foggo, Plenti’s Chief Executive Officer, said, “Evidencing stability in credit performance was a priority for this quarter, so it’s pleasing to deliver net annualised credit losses of below 1%, further demonstrating Plenti’s capabilities in credit underwriting and loan portfolio management.”

“We continue to invest in extending our technology-led customer experience and efficiency advantages as we work towards achieving our mission of building Australia’s best lender.”