I had a look through the last two quarterlies because there was...

I had a look through the last two quarterlies because there was some disappointment over the yearly figures around expenses. If you consider that April was a heavily impacted due to COVID and only writing approx $9 mil, they then did $13mil in May and $19mil in June. It’s also possible the early weeks of May were COVID impacted because a 50% jump month to month is huge. The $19mil from June means they were writing around $4.5mil a week. Maintaining that rate of originations for this entire quarter would mean they are on track to do around $58 mil for the current quarter which is 38% growth on the previous quarter. Keeping in mind all the originations this year are via their warehouse facility which has a much greater margin. Slowly they’re getting to the point where more of the book will be under the warehouse facility as opposed to the other funding sources with lower margin.

These upcoming results will be very interesting indeed. Basically, was June an outlier in terms of how good it was or is this the new norm? Melbourne economy has continued to be COVID impacted but with other economies around Aus opening up I think we could see some great figures. People in impacted industries like hospitality and retail which are starting to now pick up around the country are more likely to want a personal loan than your white collar worker on $100,000.