- Wisr reported robust new loan originations, revenue growth and loan book quality metrics in Q2 FY21.
- The company registered improved credit performance, with reduction in 90+ Day arrears.
- It remains on track to grow to more than 1 million customer profiles in near term.
Australia’s first neo-lender Wisr Limited (ASX:WZR) has recently released its December 2020 quarter report, highlighting blockbuster performance and striking numbers. The results continue the acceleration of growth from previous quarters.
The company reported a significant step-change in operating capability in the last six months. Its financial position remains strong, with AUD 29 million in cash and liquid loan assets, at the end of December 2020.
Robust Revenue Growth
- The fourth full quarter under its warehouse funding model continues to deliver superb operating benefits and economics. In Q2FY21, the company registered AUD 5.9 million in operating revenue, up by 43% on the previous quarter and whopping 350% growth on PCP.
- New loan originations witnessed record growth of AUD 83.8 million, an increase of 35% from AUD 61.9 million in the previous quarter and 165% from AUD 31.6 million in the same period a year ago.
- By 31 December 2020, total loan originations stood at AUD 390.5 million. The most recent one was of AUD 50 million, which was written in less than two months.
- Following the previous quarter’s step-change growth in loan originations and continued robust loan book performance, its Warehouse loan funding facility was upsized to AUD 250 million in the December quarter and further expansion is expected in Q3 FY21.
WZR's loan book continues to grow substantially with prime credit customers. The average credit score in Q2FY21 stood at 757, compared with 732 in the previous quarter. The Company maintained its market-leading credit performance as in Q2, 90+ day arrears fell to 0.79% from 1.01% in Q1. The improvement continues thanks to the country's macroeconomic recovery and strength of the company's credit decisioning engine along with the launch of secured vehicle loans.
Wisr stated that the roll-off of government stimulus and payment deferrals are unlikely to have an impact on these numbers.
COVID-19 related Loan: By the end of Q2, the loan portfolio related to COVID-19 arrangement stood at AUD 1.96 million or 0.71% of the total loan portfolio including AUD 0.9 million from the Warehouse, reflecting 0.45% of the Warehouse portfolio balance.
The standard financial aid requests have resumed to the pre-COVID-19 levels, and requests for the pandemic-related assistance have stopped now. The company created more than 47,900 new Wisr profiles in Q2, taking the total number of profiles to 345,475 at the end of December quarter.
WZR traded at AUD 0.185 on 1 February 2021 (AEDT 12:25 PM).