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The non-bank lender saw its loan book and originations drop in the first quarter of the financial year 2024, which it attributed to its “conservative capital management strategy”.
ASX-listed lender Wisr revealed that its loan book and loan originations were down in the first quarter (1 July to 30 September) of 1Q24 compared to the previous quarter (1 April to 30 June) (4Q23).
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Yesterday (30 October), the non-bank lender announced that its loan book shrank 5 per cent, falling from $931 million to $887 million in 1Q24.
In the ASX statement, the lender also revealed a 6 per cent decrease in its loan origination value from the 4Q23 results, down from $53 million to $50 million.
Wisr said the reduction in both its loan book and loan originations was due to the continuing “deliberate moderation of loan origination volume to prioritise profitability and maintain a strong balance sheet”.
It added: “In order to maintain a conservative capital management strategy, the moderation of loan origination volume will continue until market conditions are deemed appropriate to resume scaling.”
The first quarter results from the non-bank lender also revealed a slight rise in its 90-plus day arrears to 1.26 per cent, slightly up from 4Q23 of 1.25 per cent and significantly higher than the first quarter of the previous financial year at 0.89 per cent.
In the company’s first quarter presentation, Wisr said that “ongoing investment in collections strategies is a priority for the business” as it combats rising arrears, including through investment in further resources and technology.
Andrew Goodwin, chief executive of Wisr, stated: “Our moderated loan volume strategy remains in place with a continued focus on the maintenance of balance sheet strength and attractive loan unit economics.
“Revenue was broadly flat quarter on quarter notwithstanding a small decrease in loan book, and losses increased given the ongoing maturing of the loan book. The macro-economic environment and resulting impact on arrears will continue to be closely monitored.
“Ongoing focus on investment in collections strategies is a priority for the business with work well underway to deliver various initiatives, including investment in extra resources and technology.
“The moderation of loan origination volume will continue until market conditions are deemed appropriate to resume scaling.”
Despite the portfolio and origination drop, Wisr’s total cumulative loan origination was more than $1.7 billion – the highest value it has recorded for a quarter.
Leadership reshuffle
Wisr’s first quarter results came amid a leadership reshuffle, with it recently announcing a change of CEO and the impending retirement of its chair.
The lender terminated its former CEO Anthony Nantes in early August after the board formed the view that he was “unable to perform the role of CEO to the level required by the board”.
At the time of his termination, the board stated that it was “aware that Anthony Nantes is subject of criminal proceedings brought by NSW Police”.
Earlier this month, Wisr announced that its chair John Nantes (brother of Anthony Nantes), would not seek re-election at the company’s annual general meeting (AGM) in November and would retire from the board following the close of the AGM.
In a statement issued on 12 October, the lender confirmed Mr Nantes’ decision was “driven by a desire to ensure that the company and its business is not negatively impacted by perceptions related to Mr Nantes’ familial relationship with Wisr’s former CEO, his brother Anthony Nantes”.
Following Mr Nantes’ retirement, interim chair Matthew Brown will assume the role of chair permanently. He had taken up the position on an acting basis when Mr Nantes stepped away for his leave of absence after his brother was terminated from his position.
[Related: Wisr chair to quit to protect business]
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