Plenti’s Rapid Growth Raises Questions on Credit Risk and NAB Partnership Scale

Strong Momentum Despite Seasonal Headwinds

Plenti Group Limited (ASX:PLT) closed out FY25 on a high note, delivering record quarterly loan originations of $407 million in 4Q25, a 42% increase on the prior corresponding period and a 6% rise on the previous quarter. This achievement is particularly notable given that Q4 is traditionally a seasonally weaker period for lending activity. The company’s diversified lending verticals, automotive, renewable energy, and personal loans, all contributed to this robust growth, underscoring Plenti’s expanding footprint in the fintech lending space.

Loan Portfolio Growth and Credit Quality

The loan portfolio grew 19% year-on-year to $2.5 billion, reflecting sustained origination momentum. Automotive loans led with a 17% increase to $1.43 billion, renewable energy loans surged 25% to $341 million, and personal loans rose 19% to $764 million. Credit performance remained solid, with annualised net credit losses slightly increasing to 116 basis points but 90+ day arrears improving to 43 basis points, signaling effective risk management despite macroeconomic pressures and the impact of Cyclone Alfred in March.

Record ABS Transaction and Funding Strength

In February 2025, Plenti completed its largest-ever $509 million automotive asset-backed securities (ABS) transaction, marking a milestone in its funding strategy. The deal attracted a record number of investors and achieved pricing approximately 25 basis points tighter than comparable transactions from the previous year. This strong investor appetite not only validates Plenti’s credit quality but also supports its ambitions to scale the loan portfolio towards $3 billion efficiently.

NAB Partnership Gains Traction

The partnership with National Australia Bank (NAB) under the 'NAB Powered by Plenti' car loan product showed promising early signs. Originations tripled in 4Q25 compared to 3Q25, with March alone seeing a 60% month-on-month increase. While still emerging from a modest base, the integration of the loan product into NAB’s digital channels and initial marketing efforts have laid a foundation for further growth in FY26.

Profitability and Outlook

Plenti’s unaudited Cash NPAT for 2H25 reached $8.3 million, culminating in a full-year FY25 Cash NPAT of $13.8 million, an impressive 126% increase over FY24. This profitability leap reflects the company’s disciplined cost management, operational efficiencies, and strong revenue growth, with quarterly revenue up 16% year-on-year to $69.4 million. Plenti confirmed it met its FY25 objectives for growth, profitability, and efficiency, setting a positive trajectory for FY26. Further details and guidance will be disclosed in the full financial year results scheduled for 21 May 2025.