Plenti to make profit by mid-2022 as auto loans rise


Digital lender Plenti says it expects to start making profits by the middle of next year, as it continues to make inroads into the personal and auto loan portfolios of big banks.

After being floated in September of last year, Plenti released annual results on Tuesday that show it is growing rapidly in the auto loan market, an area it is targeting alongside personal loans and energy loans. renewable.

Plenti General Manager Daniel Foggo. “We plan to be the first consumer fintech lender in Australia to achieve a $ 1 billion loan portfolio.”Credit:AFR

New loans jumped 64 percent year-on-year to $ 470 million, while auto loans rose 301 percent to $ 230.8 million – an increase the company attributed to its investments in technology, the use of brokers and improvements to its loan products.

Plenti recorded a loss of $ 15 million for the year, but chief executive Daniel Foggo said he plans to start making monthly net income after tax (NPAT) by June of next year, as he grew older. He said the company’s $ 615 million loan portfolio is on track to hit $ 1 billion by March of next year.

“We saw very strong demand in the first quarter. We have observed a continuation of this strong demand so far and we see very promising prospects for the future, ”said Mr. Foggo.

“We plan to be the first consumer fintech lender in Australia to achieve a $ 1 billion loan portfolio.”

Plenti shares, which fell sharply when they debuted last September, continued to trade below their original offer price of $ 1.66. The action rose 0.4% to $ 1.22 in Tuesday afternoon trading.

Bell Potter analyst Damien Williamson said the result showed strong loan growth and the company was also benefiting from “favorable winds” in credit markets that had reduced its financing costs.

“This is a pretty strong outlook for the group, given that its loan portfolio has grown very sharply,” said Williamson, who had a “buy” rating on the stock in his latest published research.

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