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The non-bank lender has reported a rise in its loan book during the first half of the financial year 2023.
Wisr has revealed its loan book has grown 62 per cent on the previous corresponding period, reaching a total of $916 million, with 90-day arrears at 1.07 per cent, which according to the non-bank lender is “within risk appetite”.
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The company’s loan write-offs (net) were $5.5 million that was driven by loan book growth, representing 1.3 per cent of the average loan book for the six months to the end of December 2022.
However, due to loan book growth, Wisr has reported that financial costs have increased, which are being alleviated through “ongoing increases in front-book loan origination yield”.
Wisr’s new loan originations grew as well, up 13 per cent on the first half of FY22, hitting $302 million from $268 million.
Additionally, the non-bank lender’s revenue rose 65 per cent on the previous corresponding period at $43.2 million up from $26.2 million.
Wisr chief executive Anthony Nantes commented on these results: “We’re the only lender in market with a dual-strategy of ethical lending supported by a financial wellness platform.
“With the cost of living and inflation hitting household budgets, tools in the suite of products that Wisr offers have the potential to help customers change habits and improve their holistic financial health.
“On the lending side of our business, positive Cash EBTDA and operating cash flow in Q2FY23 show Wisr’s operational flexibility when we decided to prioritise profitability over accelerating growth, which we’d been focused on for 25 consecutive quarters.”
$200m ABS deal
Wisr priced its third asset-backed securities (ABS) transaction, known as the $200 million Wisr Independence Trust 2023-1.
The transaction was due to be settled in the week commencing 20 February 2023.
Wisr confirmed that National Australia Bank (NAB) acted as the arranger, dealer, and joint lead manager, while Westpac Banking Corporation (Westpac) was the dealer and joint lead manager.
The security included a $200 million priced ABS supported by “a pool of fully amortising secured vehicle loans”, with a weighted average margin of 2.58 per cent over one-month BBSW achieved.
According to Wisr, this transaction will “deliver a reduction in Wisr’s financing costs” and “increase funding capacity for the business” in order to support further growth of its loan book.
The total ABS transactions raised by the company rose to $675 million as a result of this latest transaction.
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