WZR 2.94% 3.5¢ wisr limited

The non-bank lender has revealed a decline in their loan book...

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    The non-bank lender has revealed a decline in their loan book driven by moderated loan volume settings as well as a new debt facility.

    Non-bank lender Wisr has revealed a decrease in their loan book of 5 per cent to $808 million (down from $847 million in 2Q24) in its market update for the quarter ended 31 March 2024 (4Q24).

    Wisr’s loan originations stood at $52 million, slightly down from $53 million in 2Q24. According to the lender, these declines were driven by deliberate moderated loan volume settings.


    In the trading update, Wisr stated it “intends to pivot loan volume growth settings in 4Q24 and beyond”.


    Additionally, Wisr has reported 90-plus day arrears of 1.71 per cent, which was impacted by the lower loan book versus 2Q24 figure of 1.31 per cent. According to the lender, the increase in late-stage balances has not materialised into losses.


    Commenting on the results, Wisr’s CEO Andrew Goodwin said: “It’s an exciting time for the business as we roll off our last quarter of moderated loan volume settings.


    “Notwithstanding a small decrease in loan book size, we delivered strong increases in front book yield and NIM to 13.16 per cent (11.94 per cent pcp) and 6.55 per cent (4.92 per cent pcp) respectively, while maintain a high average credit score of 781.”

    Furthermore, the lender has announced that it has executed an agreement for a $50 million debt facility to “provide additional strength to its balance sheet and platform to fund loan book growth”.

    The facility was provided by global financial services group Nomura and is set to accelerate Wisr’s “path to profitability” and see the lender through to a self-sustaining capital position.

    Wisr confirmed it will draw $35 million initially, with part of the proceeds repaying its existing $25 million corporate debt facility, while a further $15 million will be available to fund the lender’s continued growth plans.

    Goodwin said that Wisr was “delighted to partner with an institution of Nomura’s quality” and it looks forward to an “ongoing mutually beneficial relationship”.

    “The additional balance sheet strength provided by the facility sees Wisr well placed to pivot loan volume growth settings in 4Q24 and beyond, accelerating our path to profitability and seeing the company through to a self-sustaining capital position,” Goodwin said.

    “The facility is a testament to the debt market’s confidence in Wisr, including the quality of our prime loan book, our technology processes, and the strong risk and operational frameworks in place.”

    Source - The Adviser
    Last edited by McKhenry: 24/05/24
 
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