- Wisr, the only ASX-listed neo-lender & a fintech pioneer in the fast-rising Australian customer finance market, reported a 50% growth in Q4 FY2020 on Q3 FY2020.
- The new model of the Company supported the revenue growth during the quarter.
- The loan origination run-rate is positioned at 45% above the pre-COVID-19 levels.
- Wisr is well-capitalised at present and the cash and liquid loan assets as at 30 June 2020 stood at A$40 million.
Wisr Limited (ASX:WZR) has reported an impressive growth of 50% in its revenue for the fourth quarter of FY2020 (period ended 30 June 2020) as compared to the third quarter ended 31 March 2020. The robust results in Q4 FY2020 put the Company under the spotlight today.
Wisr is the only ASX-listed neo-lender & a fintech pioneer in the fast-rising Australian customer finance market which aims to support Aussies gain access to smarter & better credit when it is related to personal finances.
Neo-Banking can be considered as a more agile version of traditional banking practices. Neo-banking has started gaining popularity amongst the young generation.
WZR stock ended the day’s trading session at A$0.250, down 1.961% compared to its previous close. The Company has generated impressive returns of 92.31% and 35.14% in the last three months and on a YTD basis, respectively. WZR has a market cap of A$270.14 million and has around 1.06 billion outstanding shares.
In this backdrop, let us take a quick look at the quarterly report released by the Company today, which grabbed the attention of the market participants.
Business Update in Q4 FY2020:
In Q4 FY2020 (period ended 30 June 2020), Wisr delivered several growth records with 38% month on month loan growth to A$19.1 million. The loan origination run-rate stood at 45% above the pre-COVID-19 levels during February 2020. The weekly settled loan volume surpassed A$5 million for the first time.
The second full quarter operating as per the Wisr Warehouse funding model, the Company delivered A$2.91 million operating revenue in Q4FY2020, a growth of 50% on the third quarter of FY2020 and 186% as compared to the previous corresponding period (pcp).
The total loan originations on 30 June 2020 was A$244.9 million, with 92% growth in new loans to A$42.2 on pcp. The Company also noted a continuous growth in loan book regarding the size and quality metrics, with a Q4FY20 average credit score of 723, strengthening the prime nature of the WZR’s loan book, customer base along with the business model.
The Company is well-capitalised and had A$40 million in the form of cash and liquid loan assets as on 30 June 2020. This positioned Wisr well during the COVID-19 period and after that as well.
The Company, during the period, retained powerful support of all its funders. Wisr Warehouse funded most of the loans. There was an increase in the committed funding into Wisr Warehouse from A$95 million to A$150 million, which along with the off-balance sheet facility give sufficient lending runaway. The total portfolio arrears were stable with over 90 Day arrears of 1.44% as on 30 June 2020. The total portfolio arrears were below the internal risk appetite triggers and Wisr Warehouse parameters.
Also, the Australian Office of Financial Management approved an initial investment of A$30.8 million, via the Structured Finance Support Fund, into Wisr Warehouse.
A Glance at the Cash Flow Report:
In Q4 2020, WZR reported cash receipt from the customer of A$2.404 million, which was A$4.760 million for 12 months ended 30 June 2020. The cash outflow from operating activities was in the form of product manufacturing and operating costs, advertising and marketing, staff cost plus the administration and corporate costs.
The net cash outflow from investing activities was A$31.141 million. The major cash outflow was through the net movement in customer loans.
The net cash inflow from financing activities was A$34.377 million. The cash inflow was through proceeds from borrowing.
Cash and cash equivalent by the end of Q4 FY2020 was A$37.973 million.
Addition into All Ordinaries Index:
In the quarterly rebalance announced by S&P Dow Jones Indices, Wisr Limited was included in All Ordinaries, effective 22 June 2020.
WZR During COVID-19:
At the time when the pandemic situation was out of control, one thing which the Company assured was its support. Wisr had continuously monitored the COVID-19 situation and the team associated with the Company was working tirelessly from their home to support its customers.
Also, the priority of the Company during this period was the health and financial wellbeing of its customers. Hence, it provided a few methodologies to assist them during this challenging period.
For customers with a WisrCredit profile, the business remains as usual.
Wisr App Customers:
The Company waived all Wisr App fees until the end of Q3 CY2020.
Wisr Personal Loan Customers:
- The loan continued as usual.
- In case any customer experienced any financial challenge, the Company had plans to support them.
- WZR’s content team was consistently engaged in putting together practical and helpful information regarding personal finance at that time.
Wisr Ecosystem Updates:
The B2B distribution strategies, [email protected] and Wisr&Co continue to grow. The pilot [email protected] Financial Wellness program was completed successfully with Guild Super. The Company’s first partner in the important superannuation sector.
WZR’s new pilot program with amongst the top member healthcare charities in Australia continues to advance, & [email protected] partner support initiatives to ease the financial pressure of companies and employees because of COVID-19.
In the present times, Wisr continues late-stage pilots & negotiations with several new partners.