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Wisr looks towards loan portfolio growth in FY25

Wisr looks towards loan portfolio growth in FY25
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As it continues to moderate its loan origination volume, the fintech lender looks to grow its portfolio.

Fintech lender Wisr’s (ASX: WZR) financial results for the year ended 30 June 2024 have revealed the company’s intention to boost loan originations in the financial year 2025 by 75 per cent and drive further growth in its loan portfolio.

Following “deliberate moderation” of loan origination volume for the majority of FY24, Wisr reported total new loan originations of $210 million, down from $495 million during the same time last year.

As a result, its loan book also fell to $770 million from $931 million, driven by these same loan volume moderations.

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Additionally, 90-plus day arrears increased for the lender to 1.58 per cent during this period, up from 1.25 per cent, which was driven by both a decrease in and a maturing of the loan book, according to Wisr, while the loan book average credit score “remained strong” at 782, up from 780.

Meanwhile, this period saw Wisr strengthen its balance sheet through a $50 million corporate facility from global financial services group Nomura and has commenced its return growth.

As a result of this pivot back to growth, run rate loan originations in 4Q24 were around $67.5 million, an increase of 30 per cent on the prior quarter.

Commenting on the financial results, Wisr’s CEO Andrew Goodwin said: “The momentum we saw in Q4FY24 has carried forward into FY25 with increased application flow, greater loan origination volume and larger average loan sizes.

“Our intention in FY25 is to continue focusing on loan volume growth at attractive unit economics and to scale the business towards profitability and a self-sustaining capital position.

“The combination of a bolstered balance sheet, our proprietary technology, prime loan book, and robust risk and operational frameworks means that Wisr is well positioned to achieve these goals.”

Furthermore, Goodwin said that Wisr “prioritised key actions” to serve customers and position the company once the macro-economic environment “became more conducive to growth”.

“These included uplifting Wisr’s technical capabilities to improve collections strategies, broker experience and the functionality of the Wisr App as well as putting measures in place to ensure prudent cost management and capital preservation,” Goodwin said.

“We remained committed to our mission as a purpose-led business and also introduced new features for customers including Debt Bustr which allows Australians to consolidate and simplify their personal debt with Wisr.”

[RELATED: Wisr obtains additional $25m facility]

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