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The fintech lender has revealed a “return to growth” in its market update for the quarter ended 30 June 2024.
Fintech lender Wisr Limited (Wisr) has revealed an increase in loan originations of 7 per cent during 4Q24 when compared to the previous quarter on the back of the execution of the $50 million debt facility provided by global financial services firm Nomura.
Following the transaction, Wisr has reported that the run-rate loan originations quarterly performance was $67.5 million, an increase of 30 per cent on the March quarter of 2024.
The value of loan originations for the June quarter of 2024 was $55.2 million, up from $55.1 million in 3Q24.
However, despite the increase in loan originations, the fintech lender reported a 5 per cent decrease in its loan book, down from $808 million in 3Q24 to $770 million in 4Q24.
According to Wisr, the decline in its loan book was the result of the company transitioning from moderated loan volume settings to growth during this quarter.
In addition, Wisr has revealed an improvement in its 90-plus day arrears, declining down to 1.58 per cent in the June quarter from 1.71 per cent in the previous corresponding period.
The company said this was a reflection of the continued credit strength of its loan portfolio.
Commenting on the market update, Andrew Goodwin, Wisr’s CEO, said: “As we concluded the final quarter of FY24, on the back of the Nomura transaction, we transitioned from our previous focus on moderated loan volume settings and recommenced growth.
“Wisr saw a 7 per cent increase in loan originations in 4Q24 compared to the previous quarter. The end of the quarter was particularly pleasing post the Nomura transaction, with quarterly run-rate originations of c. $67.5 million, an increase of 30 per cent from 3Q24.
“We continued to expand portfolio yield and NIM to 10.90 per cent (10.17 per cent pcp) and 5.38 per cent (5.21 per cent pcp), respectively, while maintaining a high average credit score of 782.
“With the $50 million 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.”
Part of the proceeds from the Nomura facility were used to repay the company’s existing $25 million debt facility, while a further $15 million was made available to fund Wisr’s ongoing growth plans.
As of the end of the June quarter, two warehouses are in place in order to support Wisr’s originations with a total commitment value of $650 million and an undrawn capacity of $220 million.
[RELATED: Wisr loan book falls 5%]
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