I have modeled the Consumer lending business for the 2016 financial year.
Key assumptions:
Average new monthly loans written - $6.0m (annualized - $72m)
Provisions on loans (when) written – 25.6% (annualized - $18.4m)
Average interest rate charged – 46.5% pa
Average monthly loan repayments - $3.2m (annualized - $38.8m)
Average monthly expenditure (e.g.: staff and advertising) - $1.8m (annualised - $22.2m)
The loan book will be $118m at the end of 1H 16 and $133m at the end of 2H 16.
This model generates Interest Income for FY16 of $55.4m, which is almost $20m higher than $35.86m in FY15.
The NPBT in the first 6 months will be $5.8m and in the second half $9.0m, a total of $14.8m. This figure is $13.4m higher than the $1.4m declared for the whole of FY15.
it is great to see that the consumer lending business is now mature enough to bear meaningful fruit.
Any comments?
K
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