Plenti delivers a whopping $1.55 billion loan portfolio to 1H23
Technology-led lender Plenti has grown its loan portfolio for 1H23 by a whopping 69% to $1.55 billion – yep, billion.
That’s a big bump from the previous corresponding period (PCP) and 19% above the prior half-year.
Half-year loan originations were $558 million, 18% above the PCP, despite material borrower rate increases, and the company scored record revenue of $63.8 million, 71% above the PCP and 24% above the prior half, driven by loan portfolio growth and higher rates being passed on to borrowers over the course of 2022.
Plenti (ASX:PLT) also maintained its strong and stable credit performance, with annualised net losses for the half-year of only 63 basis points, reflecting the prime nature of its borrowers across each of its three loan verticals.
And the company generated Cash Net Profit After Tax (NPAT) of $1.4 million in H1 FY23, a $3.6 million improvement on the PCP.
The company has seen an increased volume of loans funded by retail investors via the Plenti Lending Platform, which provides low cost and capital efficient funding, CEO Daniel Foggo says.
“Not all lending businesses are the same – these results demonstrate Plenti’s clear competitive strengths,” he said.
“In line with our focus on protecting margins, we have successfully increased yields on new lending to offset higher funding costs, helping to drive a positive Cash NPAT result for the half-year.
“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”.
During 2H23, Plenti says the focus will remain on maximising the yield it achieves on new loan originations, while driving further operational efficiencies and Cash NPAT results.
The main goals include reaching a loan portfolio of ~$1.75 billion by 31 March 2023, driving robust cash NPAT growth and achieving a cost-to-income target of <35%.
The medium-term ambition is to realise $25+ million in cost benefits as the loan portfolio doubles from $1.5 billion to $3 billion.
And the company says it will continue to invest in extending its technology advances – including an updated investor mobile app.
This article was developed in collaboration with Plenti Group, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.