Wisr’s Q2FY25 Loan Originations Surge to $93.5M, Portfolio Yield Hits 11.20%
Wisr has reported a robust Q2FY25 with loan originations surging 77% year-on-year to $93.5 million, alongside improving credit metrics and a well-capitalised balance sheet.
- Loan originations increased 77% to $93.5 million in Q2FY25
- Portfolio yield rose to 11.20%, net interest margin improved to 5.93%
- Average credit score of loan book increased to 798
- Net losses declined to 1.72%, 90+ day arrears stable at 1.55%
- Strong liquidity with $17.9 million unrestricted cash and $15 million undrawn facility
Loan Growth Momentum
Wisr has delivered a standout performance in the second quarter of fiscal 2025, with new loan originations reaching $93.5 million. This represents a striking 77% increase compared to the same quarter last year and a 21% rise quarter-on-quarter. The fintech lender’s growth was driven by both personal and secured vehicle loans, with the latter showing particularly strong momentum, accounting for 42% of total originations in the quarter.
The company reaffirmed its guidance for over 75% loan origination growth for the full fiscal year, signalling confidence in its ability to scale operations amid a competitive lending environment.
Improving Portfolio Quality and Margins
Alongside volume growth, Wisr has enhanced the quality and profitability of its loan book. The portfolio yield increased by 69 basis points to 11.20%, while the net interest margin (NIM) expanded by 60 basis points to 5.93%. This margin improvement reflects a strategic shift towards higher-quality secured vehicle loans, which carry stronger credit profiles and yields.
Credit quality metrics also improved, with the average credit score of the total loan book rising to 798. This was supported by a front book credit score of 824, indicating that new loans originated during the quarter were of higher creditworthiness. Consequently, net losses declined for the second consecutive quarter to 1.72%, down from 2.06% in Q1FY25, while 90+ day arrears remained stable at 1.55%, well within Wisr’s risk appetite.
Robust Capital Position and Funding Strategy
Wisr’s balance sheet remains well capitalised to support its growth ambitions. The company held $17.9 million in unrestricted cash at the end of December 2024, complemented by $15 million available to draw from its corporate facility. Additionally, Wisr has secured committed funding of $400 million and $250 million in two separate warehouses for personal loans and secured vehicle loans respectively, with undrawn amounts providing further liquidity.
Work is underway on a third warehouse facility combining personal and secured vehicle loans, backed by new senior and mezzanine funders, which should further enhance Wisr’s funding flexibility and capacity to originate loans at scale.
Customer and Market Insights
Wisr’s customer base spans across Australia, with a majority employed full-time and borrowing primarily for vehicle purchases (64%), debt consolidation (12%), and home improvements (11%). The company’s proprietary technology platform continues to engage borrowers effectively, with loan customers using the platform reportedly 27% further ahead on their loans compared to non-engaged customers.
This combination of technology-driven customer engagement and diversified loan products positions Wisr well to capture ongoing demand in the consumer finance market.
Looking Ahead
Wisr’s Q2FY25 results underscore its ability to grow loan originations rapidly while improving credit quality and maintaining strong capital buffers. The company’s strategic focus on higher-quality secured vehicle loans and its expanding funding base are likely to support continued margin expansion and portfolio growth.
Investors will be watching closely how Wisr manages credit risk amid rising volumes and how the new warehouse facility impacts funding costs and loan origination capacity in the coming quarters.
Bottom Line?
Wisr’s strong Q2FY25 performance sets the stage for sustained growth, but credit quality and funding execution remain key to watch.
Questions in the middle?
- How will Wisr’s new third warehouse facility influence its funding costs and loan origination capacity?
- Can Wisr sustain its improving credit quality amid rapid loan book growth?
- What impact will shifts in loan mix have on portfolio yield and net interest margin going forward?