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The majority of loans Plenti wrote in the September quarter came through brokers, which saw the group’s book more than double year-on-year.
A trading update from Plenti Group revealed the group hit a record $256.4 million in loan originations during the three months to 30 September, more than double (up 140 per cent) from the prior corresponding period and 18 per cent higher from the prior quarter.
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The group also reached a high in monthly loan originations, writing $95.5 million in September, which had leapt year-on-year by 159 per cent.
The three months to September marked the second quarter in Plenti’s recorded 2022 financial year.
For the half-year, loan originations came to $473 million, a 183 per cent surge from the prior corresponding period and a 56 per cent growth from the prior half.
Brokers had originated around 70 per cent of the lender’s loans during the September quarter. However, of Plenti’s total $915 million book, the broker channel had sourced 19.8 per cent of loans – a slight uptick from September 2020, when they accounted for 15.4 per cent.
Plenti chief executive Daniel Foggo called brokers a “lynchpin” for the business during the last quarter.
“They consistently play a key role in delivering our automotive and personal lending products to borrowers – and we’re currently piloting our legal fee lending product via the broker channel, which we believe can fill an important niche for clients,” Mr Foggo explained.
The loan portfolio had grown to $915 million during the September quarter, 110 per cent greater than the previous corresponding period and 21 per cent above the previous three months.
As a result, Plenti has brought forward its expected date for achieving a $1 billion loan book and profitability to the end of the year. Both goals had previously been set for March to June 2022.
“By continuing to take market share, Plenti has achieved strong growth despite COVID-induced lockdowns,” Mr Foggo said.
Across segments, the automotive business occupied the largest slice of Plenti’s portfolio, with $143.1 million originated during the September quarter – jumping by 159 per cent year-on-year.
The division finished the period with a loan portfolio worth $464 million, 218 per cent more year-on-year and 31 per cent up from the prior quarter.
There had also been $87.4 million worth in loans originated in the personal lending unit, up by 136 per cent year-on-year. The total book at the end of the September quarter came to $337 million worth, 55 per cent more year-on-year and 21 per cent higher than the previous quarter.
Multichannel reach and digital capabilities were credited for the growth across both personal and car loans.
The renewable energy business meanwhile had $25.9 million in loans originated, 78 per cent more than the previous corresponding period. The portfolio had a total of $114 million in loans, 60 per cent more than the year before and 16 per cent up from the previous quarter.
Plenti cited referral partners from its buy now, pay later offering for the renewable energy spike, as well as the accreditation of an additional 50 commercial lenders.
Notably, lockdown restrictions in NSW had reduced the relative contribution of the state’s loan originations by around 4 per cent across all loan products, and by 6 per cent in personal loans compared to its average in the prior 12 months.
Plenti has forecast that the state’s reopening will serve as a growth catalyst.
[Related: Plenti prices inaugural ABS transaction]
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