Plenti Group achieves record September quarter, brings forward $1b loan book target

Plenti Group ASX PLT loan origination growth 2021
Plenti Group expects to be cash flow positive and achieve a $1 billion loan book by the end of December 2021, instead of March 2022.

Fintech lender Plenti Group (ASX: PLT) has achieved another record quarter for the three months ending September (Q2 FY2022), which has brought forward the company’s $1 billion loan book target to December instead of March 2022.

Plenti’s quarterly loan origins for Q2 FY2022 were up 140% to $256.4 million compared to $107 million in Q2 FY2021.

The Q2 FY2022 number was also 18% higher than Q1 FY2022 which saw loan origins of $216 million.

Underpinning this record growth was an all time monthly high of $95.5 million in loan origins for September, which was an increase of 159% on September 2020.

Plenti chief executive officer Daniel Foggo said the September quarter had been another “outstanding” period for the company with record loan origins across each lending vertical.

“By continuing to take market share, Plenti has achieved strong growth despite COVID-induced lockdowns.”

Mr Foggo added the company’s strong growth has led to accelerated time frames where it now expects to achieve a $1 billion loan book by the end of December. The company also anticipates it will be cash flow positive in this time frame.

Lending segment performance

Driving Plenti’s accelerated growth was record loan origins across its three lending verticals – automotive, renewable energy and personal.

The highest loan origins came from the automotive segment which achieved $143.1 million in Q2 FY2022 compared to $55.4 million in Q2 FY2021 and $114.6 million in Q1 FY2022.

Plenti’s personal lending division reported $87.4 million in loan origins for Q2 FY2022 – up 136% on Q2 FY2021’s figure of $37 million.

Renewable energy loan origins were $25.9 million for Q2 FY2022, compared to $14.6 million in Q2 FY2021.

Although accounting for the least of amount of loan origins, the renewable energy division experienced the highest quarter-on-quarter growth of 26%.

Record half year

Meanwhile for the first half of the 2022 financial year ending June (H1 FY2022), Plenti’s posted $473 million in loan origins – up 183% on H1 FY2021.

It was also 56% higher than the prior half year period.

During Q2 FY2022, Plenti’s loan portfolio reached $915 million, which was a 110% rise on the previous corresponding period and up 21% on the June quarter’s $757 million.

Reduced funding costs

Underpinning the record performance, was Plenti’s “exceptional credit performance”. The company noted its annualised net losses for Q2 FY2022 were 70 basis points.

Plenti’s automotive loan funding costs have also been “significantly reduced” after it completed a $306.3 million asset-based securities transaction in August.

Moody’s gave 87.8% of the notes in the transaction a AAA rating.

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