If I’m reading this correctly, their originations were $186m and the loan book increased by $105m. Total loan book now at $885m. Looks like by the end of this quarter they’ll be getting pretty close to the $1B book mark.
Of course loan book runoff is going to increase, that’s what happens when you increase the size of your book as clearly there are no interest only loans here. The key to growing the book will be to continue growing originations. In this high inflation environment with the cost of living increasing, it’s less likely for customers to have as much spare cash flow to make additional payments to pay down debt which should actually mean runoff slows down. House prices decreases also means less customers have the equity in their homes to consolidate the debt into their home loan.
WZR Price at posting:
6.0¢ Sentiment: Hold Disclosure: Held
