Wisr sees surge in loan originations

Fintech lender, Wisr Limited (ASX: WZR), has announced an increase of 54 per cent in loan originations in its market update for the quarter ending 30 September 2024 (1Q25).

This equated to loan originations of $77.3 million during the quarter, up from $50.1 million on 1Q25, and a 40 per cent increased compared to the prior quarter’s figure of $55.2 million. According to Wisr, this has reflected its “first full quarter of executing its return to growth strategy”.

Additionally, the lender’s secured vehicle originations increased by 67 per cent, while its personal loan originations grew by 49 per cent when compared to the same quarter last year.

Despite the growth in originations, Wisr’s loan book decreased by 15 per cent from $887 million to $753 million year on year, which it has attributed to a “moderated growth strategy implemented in FY24”. On a quarterly basis, the lender’s loan book declined by 2 per cent.

As a result, the reduction in Wisr’s loan book also saw its quarterly revenue decrease to $22.5 million, down from $24.3 million in 1Q24.

Wisr also reported an improvement in its 90-plus day arrears, dropping to 1.40 per cent from 4Q24 (1.58 per cent), showing continued credit strength of its loan portfolio and the impact of improved collections processes.

Andrew Goodwin, Wisr’s CEO, said on the results: “We are delighted to deliver our first full quarter of growth since pivoting from moderated growth settings in FY24.

“Maintaining the prime quality of Wisrʼs loan book was a focus during this period, and we were pleased to see improvements in yield while maintaining a strong average credit score of 782.

“Our continued work enhancing collections processes reduced 90-plus day arrears to 1.40 per cent, down from 1.58 per cent in the previous quarter. In addition, we saw a reduction in net losses to 2.06 per cent from 2.75 per cent over the same period.

“Looking ahead, as we focus on growing loan originations and our loan book in FY25 and beyond, we are encouraged by significant improvements in our unit economics. Notably, portfolio yield increased by 79 bps to 11.12 per cent (versus pcp), led by key pricing initiatives on the front book.”

[RELATED: Wisr looks towards loan portfolio growth in FY25]

Adrian Suljanovic is a journalist at Broker Daily with more than two years experience reporting on all facets of the third party distribution channel.

Adrian has written for a range of business and finance titles including IFA, Investor Daily and Lawyer’s Weekly before joining the mortgages team in 2022.

He graduated from the University of Wollongong in 2021 gaining a Bachelor of Communication & Media with a major in Digital & Social Media.

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