Wisr Accelerates Loan Growth with 77% Surge in Originations and Improved Margins
Wisr Limited reports a robust 77% increase in loan originations for Q2FY25, driving loan book growth and enhanced portfolio quality amid a strategic shift towards secured vehicle loans.
- Loan originations surged 77% to $93.5 million in Q2FY25
- Loan book grew to $757 million, reversing prior moderation
- Net losses improved, falling to 1.72% from 2.06% in prior quarter
- Secured vehicle loans originations increased 230%, boosting credit quality
- Portfolio net interest margin rose to 5.93%, supporting profitability
Strong Loan Growth Signals Strategic Momentum
Wisr Limited (ASX: WZR) has delivered a compelling update for the second quarter of FY25, posting a 77% increase in loan originations to $93.5 million despite seasonal headwinds. This surge reflects the company’s successful execution of its growth strategy, which has also translated into a modest expansion of its total loan book to $757 million, marking the first quarter of growth after a period of cautious volume management.
The growth was notably driven by a sharp rise in secured vehicle loans, which saw originations climb 230% year-on-year to $39.1 million. This shift not only bolsters the loan book’s size but also its credit quality, as evidenced by an increase in the average credit score to 798 and a front book credit score of 832. The higher quality of these loans has contributed to a reduction in net losses, which fell to 1.72% from 2.06% in the previous quarter.
Improved Margins and Portfolio Performance
Alongside volume growth, Wisr has enhanced its portfolio economics. The portfolio yield edged up slightly to 11.20%, while the net interest margin (NIM) improved to 5.93%, up from 5.64% in Q1FY25. Although the front book yield declined due to the increased mix of secured vehicle loans, the company noted a rebound in January 2025 month-to-date yields, underscoring the variability and potential upside in loan mix and pricing.
Operationally, the company maintained strong customer engagement, with a Net Promoter Score of +77, and facilitated significant customer repayments totaling $39.4 million in extra payments and $10.1 million in round-ups since inception. These metrics highlight Wisr’s ongoing commitment to customer-centric lending and financial wellness tools integrated within its fintech platform.
Capital Position and Funding Outlook
Wisr’s funding structure remains robust, supported by two warehouse facilities with a combined commitment of $650 million and $153 million in undrawn capacity. Additionally, the company retains $15 million available from its $50 million corporate facility announced in May 2024, providing ample liquidity to sustain its growth trajectory.
CEO Andrew Goodwin emphasized the company’s focus on balancing growth with profitability and credit quality, stating, “Our continued focus on growth is evident in our latest market update. The prime quality of Wisr's loan book continues to improve, and we remain committed to accelerating loan origination growth while maintaining a strong balance sheet.”
As Wisr closes the first half of FY25, the company appears well-positioned to capitalize on its fintech platform’s strengths, leveraging its diversified loan portfolio and disciplined risk management to drive sustainable growth.
Bottom Line?
Wisr’s Q2FY25 results underscore a strategic pivot to higher-quality secured lending, setting the stage for sustained growth and improved profitability in a competitive fintech lending market.
Questions in the middle?
- Can Wisr sustain the elevated loan origination growth beyond seasonal fluctuations?
- How will the increasing share of secured vehicle loans impact long-term portfolio risk and returns?
- What are the implications of fluctuating front book yields for Wisr’s pricing strategy and margin stability?
