Wisr delivers a record $186 million in new loans
Despite market conditions, non-bank lender Wisr has grown revenue by $17.6 million for Q4FY22, its loan book increased by 106% pcp ($780 million) and delivered the largest quarter of new loans to date at $186 million.
In response to the realised and predicted increase in Cost of Funds (COF), Wisr has been lifting loan rates consistently through Q4FY22 to maintain and protect margin and profitability. These pricing changes have already delivered a 130bps lift in the weighted average yield of new loans written in July compared to April 2022.
Anthony Nantes (pictured), Chief Executive Officer, Wisr, said, “Despite current conditions, we’ve delivered a record $186 million in new loans; continued our unbroken 24 quarters of loan growth; grown revenue by 81%; grown our loan book by 106% with an average prime 801 credit score; originated credit assets of the highest quality; priced our second ABS deal – receiving significant support from the debt market; and maintained a strong balance sheet.”
“We have our sights set firmly on moving through breakeven and into sustainable profitability as our next goal. Our credit decisions and products are prime-skewed to bank-grade customers. As we did in COVID, we’re well prepared to navigate market conditions with early warning indicators already in place to respond quickly and tighten credit while also investing in our collection processes. We’re in a solid position to absorb BBSW increases while still earning a very healthy NIM with multiple levers available, including raising interest rates on new loans, in line with Wisr’s credit risk appetite, which we have been doing throughout the quarter.”
“Wisr has never been better positioned to accelerate our operating leverage and scale. As consumers demand fairer financial products and services due to cost-of-living pressures and a rising rate cycle, Wisr is well-placed and well-resourced to meet the demand. We’re well-capitalised and building sustainable revenue. Reductions in operating costs are being put in place as we enter FY23 and surpass our near-term target of a $1B wholly-owned loan book and delivering a highly profitable business in the medium term,” finished Nantes.
