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The non-bank lender’s loan book grew 36 per cent in the quarter ended 31 March, driven by strong automotive loan demand.
Plenti Group Limited (Plenti) has released a trading update for the quarter ended 31 March 2023 (4Q23), revealing its loan book has grown by $47 million in a year, with car loans steering the majority of the volume.
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According to the non-bank lender’s update, it had $998 million of automotive loans in its portfolio at 31 March 2023, up 34 per cent on the same period in 2022.
Personal lending also grew, with the book rising from $413 million to $568 million when compared to the prior comparative period, representing a lift of 37 per cent.
Renewable energy loans, the newest addition to the lender’s suite, grew fastest, however. Plenti had $201 million renewable energy loans in its portfolio at the end of 4Q23, up from $142 million in the same period last year.
Overall, Plenti said it was pleased that its loan book increased to $1.77 billion, 36 per cent above PCP and 6 per cent above prior quarter.
However, while its book grew, total loan originations for the quarter were $276 million, lower than the prior comparable period (PCP) and prior quarter.
According to the lender, this came as Plenti “continued to prioritise net interest margins”.
The majority of originations were had in March ($111 million), given the seasonally lower originations in January and February caused by the summer holidays and reportedly supported by “reduced competition and higher competitor pricing in some key lending channels”.
Automotive loan originations were $127 million (down from $142 million in the prior quarter), which Plenti said reflected a seasonally quieter quarter for the automotive vertical.
Personal loan originations were $113 million, down 7 per cent on the prior quarter, “reflecting usual seasonality”, according to Plenti.
Renewable energy loan originations were up to $36 million, a record quarter and 5 per cent above the prior quarter, the lender said.
“Plenti continued to prioritise loan profitability throughout the quarter, which was helped by the positive developments in the competitive environment and supported stable portfolio margins,” it said.
Commenting on the quarter, Daniel Foggo, Plenti’s chief executive, said: “Our continued investment in our technology-led customer experience and efficiency advantages has delivered another strong quarter for Plenti.
“With our continued momentum and healthy net interest margins, we enter our new financial year confident of our ability to drive both strong loan portfolio growth and business profitability.”
[Related: Plenti ends 2022 with $1.67bn book]
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