HUM Daily Price Movement/ Valuations, page-94

If I understand it correctly, about 3.5% of the money they lend out never comes back.

When they lend out 100$ obviously they don't pocket all of the 100$ as their revenue. They only take a fee etc. If you use the impairment amount divided by HUM's revenue (58.7 / 443.9 = 13.2%), which is presumably the number you were referring to, it just means that the amount of money they couldn't get back amounts to 13% of their revenue (not the total $ they lend out). This is just cost of doing business and a conscious decision to keep the number at an acceptable level.

The loss/ANR rate would be very closely monitored by HUM and will quickly shift their lending criteria if economic conditions turn sour (and so would any lending companies, remember when APT/Z1P kept saying they adjust their lending during the covid crash?).
Besides, not much about the economy is actually good I think. How many shops closed and are awaiting to be leased on our streets? How many people from service sectors are sitting at home? The ones least affected are probably white collar workers with a stable job who can comfortably work from home. The recovery seems very uneven, at least to me.