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- Neo-lender Wisr (WZR) has had a strong quarter of growth, with record operating revenues and a strong balance sheet
- Quarterly operating revenue grew to $4.1 million, which is a 358 per cent year-on-year increase, and 37 per cent more than the previous quarter
- $61.9 million in new loan originations also reflect the company’s accelerated growth, marking a 47 per cent quarterly increase.
- The company has also posted a strong credit performance, with a quarterly reduction in 90-day arrears from 1.44 per cent to 1.01 per cent
- The September launch of the company’s Secured Vehicle Finance product has also added to Wisr’s addressable market opportunities
- Fully-funded and with a strong balance sheet, Wisr looks set for continued growth through the 2021 financial year
- Wisr is trading 2.83 per cent higher for 21.5 cents per share
Wisr (WZR) has had a strong quarter of growth, with record operating revenues and a strong balance sheet.
Strong financials
Quarterly operating revenue grew to $4.1 million, which is a 358 per cent year-on-year increase, and 37 per cent more than the previous quarter.
$61.9 million in new loan originations also reflect the company’s accelerated growth, marking a 47 per cent quarterly increase.
Wisr remains strongly capitalised with $34.7 million in cash and liquid loan assets, including $6.1 million in restricted cash and $2.6 million in liquid loan assets held on its balance sheet and available for sale.
The company has posted a strong credit performance, with a quarterly reduction in 90-day arrears from 1.44 per cent to 1.01 per cent.
Wisr CEO Anthony Nantes says the company has performed above expectations through the pandemic downturn.
“Through the significantly improved unit economics and operational leverage of the Wisr Warehouse, we’ve delivered an outstanding 358 per cent growth in revenue compared to this same period last financial year, combined with record low rates in arrears despite the macroeconomic conditions,” Anthony said.
“The growth in our loan book and revenue is a direct result of consumers demanding better products and services for their personal finance needs, and the differentiated business model we have delivered,” he added.
The Outlook
Wisr’s credit policies have stood up well amid the challenges thrown up by the pandemic, with a 57 per cent quarterly decrease in customers on COVID-19-affected repayment schedules.
Just $4.6 million, or 2.2 per cent of the total portfolio loan balance is now on a
COVID-19 related payment arrangement, compared to $10.8 million or 6.4 per cent in the previous quarter.
The reduction in financial assistance requests has also continued in the September quarter, and those requests have now returned to pre-COVID-19 levels.
The September launch of the company’s Secured Vehicle Finance product has added to Wisr’s addressable market opportunities. Already, the product’s performance has outstripped expectations and added to the company’s accelerated quarterly growth.
The Wisr ecosystem also added 46,000 new users during the quarter, a growth of 18.3 per cent.
The CEO believes Wisr’s upward trajectory will continue over the coming months.
“Our loan growth, credit performance and improved unit economics has the company well-positioned for a strong growth trajectory through the coming quarters,” Anthony said.
“We have a significant opportunity to provide a new type of lending experience, grow market share in-line with our risk appetite and continue to innovate, and deploy a holistic solution not offered by any other lender, anywhere in Australia,” he concluded.
Fully-funded and with a strong balance sheet, Wisr looks set for continued growth through the 2021 financial year.
Wisr is trading 2.83 per cent higher for 21.5 cents per share at 2:10 pm AEDT.
