Plenti (ASX:PLT) reports record 140% year-on-year growth  

Highlights

  • Plenti Group has reported quarterly loan originations of AU$256.4 million, 140% more than the last year and 18% higher than the preceding quarter. 
  • Assuming consistent credit performance, the Group expects to achieve positive monthly Cash NPAT by December 2021. 
  • Plenti has reported an exceptional credit performance with 90+ day arrears at 26 bps. 

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ASX-listed provider of consumer finance services Plenti Group Limited (ASX:PLT) shared its trading update for the quarter ended 30 September 2021 (Q2 FY22) and reported yet another exceptional quarter.

The Company witnessed record-breaking quarterly loan originations across each lending vertical.  

The Company revealed in its trading update for Q2 FY22:  

  • Record quarterly loan originations of AU$256.4 million, 140% more than the prior corresponding period (PCP) and 18% higher than the preceding quarter.  
  • Record monthly loan originations of AU$95.5 million in September, representing an increase of 159% compared to September 2020.   
  • H1 FY22 loan originations of AU$473 million, 183% above PCP and 56% above prior half.   
  • The loan portfolio increased to AU$915 million, 110% above PCP and 21% above the prior quarter.    
  • Exceptional credit performance maintained with 90+ day arrears at 26 basis points.   

According to today’s announcement, the Group expects to achieve AU$1 billion loan portfolio by the end of December 2021 (previously by March 2022). Nonetheless, assuming consistent credit performance, the Company also expects to achieve positive monthly Cash NPAT by December 2021 (previously by June 2022).   

Backed by this announcement, the shares of the Company closed 4.347% higher at AU$1.440 on the ASX.

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Bottom Line:  

The update shared by the Company today shows that Plenti has achieved strong growth despite COVID-induced lockdowns. The strong growth, along with the high level of operational leverage from the technology-led business model, has accelerated the Group’s targeted timeframes for achieving a one-billion-dollar loan book and reaching Cash NPAT profitability, now targeted by the end of December 2021. Besides, it is pertinent to mention that the Group achieved this strong loan origination growth without compromising credit quality.   

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