Wisr returns to growth in Q4 FY24, helps Aussies bust debt

Wisr posts a 7% increase in loan originations in Q4 FY24 as it recommences its growth strategy
$50m debt facility by global financial services firm Nomura announced during the quarter strengthens balance sheet
Fintech launched Debt Bustr in May to further support Australians in consolidating and simplifying personal debt with Wisr

Special Report: Fintech lender Wisr has recommenced its growth strategy with continued margin expansion in Q4 FY24 following the execution of a $50m debt facility provided by global financial services firm Nomura in late May 2024.

Wisr (ASX:WZR) posted a 7% increase in loan originations in Q4 FY24 compared to the prior quarter as it continues its path to profitability, while also helping Aussies bust debt.

WZR announced in May it had executed a deal for a $50m debt facility with global financial services group Nomura, providing additional strength to its balance sheet and platform to fund loan book growth.

Post the Nomura transaction , WZR says run-rate loan originations’ quarterly performance was approximately $67.5M, a 30% increase on the prior quarter.

During Q4 FY24 WZR continued its increase in margins and net operating cash flow, with highlights including:

Portfolio net interest margin (NIM) of 5.38% compared to 5.21% on pcp with front book (June 24 run rate) NIM 6.34% (June 23 6.06%)
Portfolio yield was 10.90% up from 10.17% in June 23 10.17%, with front book June 24 run rate yield 12.62% compared to 13.11% in June 23
Quarterly net operating cash flow of $4m was a 128% increase on pcp; and,
Quarterly revenue of $22.5m was an 8% decrease on Q4 FY23 $24.6m.

Growth in loan originations and sable credit quality

WZR says loan originations were $55.2m for the quarter, a 7% increase on pcp with the company recommencing growth following the execution of the new facility provided by Nomura.

A loan book of $770m was a 5% decrease on Q3 FY24, as WZR transitioned from moderated loan volume settings to growth during Q4 FY24.

The company says, importantly, its loan book average credit score remained strong at 782, with 90-day arrears of 1.58%, an improvement from 1.71% in Q3 FY24, reflecting the continued credit strength of its loan portfolio.

The company had net losses of $5.4m as prior period loan book vintages matured.

Strong balance sheet supported by Nomura facility

WZR ended Q4 with unrestricted cash of $28.4m, a 31% increase on pcp, which it says was strengthened by the initial $35m draw of the $50m Nomura facility.

Part of these proceeds were used to repay WZR’s existing $25m corporate debt facility, with a further $15m available to fund its ongoing growth plan.

Two warehouses are in place to support originations with a total commitment value of $650m and an undrawn capacity of $220m.

Helping Aussies bust debt

WZR says its all-time customer net promoter score was +78.

The Wisr App has facilitated the payment of $9m in round-ups on customer debt and $26.4m in extra loan repayments.

As cost-of-living remains a key concern for many Aussies, the fintech launched Debt Bustr in May to further support consolidating and simplifying personal debt with WZR.

CEO Andrew Goodwin said as WZR ended FY24 on the back of the Nomura transaction, the company transitioned from its previous focus on moderated loan volume settings and recommenced growth.

“Wisr saw a 7% increase in loan originations in Q4 FY24 compared to the previous quarter,” he said.

“The end of the quarter was particularly pleasing post the Nomura transaction, with quarterly run-rate originations of approximately $67.5M, an increase of 30% from Q3 FY24.”

Goodwin said WZR continued to expand portfolio yield and NIM while maintaining a high average credit score.

“With the $50m facility provided by Nomura settled during the quarter, Wisr is positioned to continue growing loan originations at attractive unit economics and scale the business to profitability and a self-sustaining capital position,” he said.

This article was developed in collaboration with Wisr, 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.