Wisr’s Loan Originations Hit $111M, Loan Book Grows to $777M in Q3FY25
Wisr Limited reported a robust Q3FY25 with loan originations surging 115% year-on-year and a second consecutive quarter of loan book growth, prompting an upgrade to its FY25 loan origination guidance.
- Loan originations rose 115% to $111 million in Q3FY25
- Loan book expanded to $777 million, up $20 million from prior quarter
- Average borrower credit score improved to 800
- Portfolio yield increased to 11.25%, with net interest margin at 5.60%
- FY25 loan origination growth guidance upgraded to over 90%
Strong Loan Origination Momentum
Wisr Limited (ASX: WZR) has delivered a compelling performance in the third quarter of fiscal 2025, marked by a 115% increase in loan originations to $111 million compared to the same period last year. This surge was driven by significant growth in both secured vehicle loans, which jumped 255%, and personal loans, which rose 80%. The company’s strategic pivot back to growth in Q4FY24 is clearly bearing fruit, with loan originations climbing 19% quarter-on-quarter.
Loan Book Growth and Credit Quality
The loan book expanded to $777 million, up $20 million from December 2024, marking the second consecutive quarter of disciplined loan book growth. Wisr has maintained a strong credit profile, with the average borrower credit score increasing to 800, up from 794 a year earlier. This focus on prime-quality lending is reflected in improved arrears metrics, with 90+ day arrears falling to 1.48%, a 23 basis point improvement year-on-year, aided by the company’s new arrears management platform.
Financial Performance and Yield Expansion
Portfolio yield expanded to 11.25%, up from 10.71% in Q3FY24, supported by ongoing repricing initiatives. The portfolio net interest margin (NIM) also improved to 5.60%. Despite a slight dip in revenue to $22.4 million, attributed to a lower average loan balance during the quarter, Wisr expects revenue to scale as the loan book continues to grow. Net losses stood at 1.99%, within the company’s risk appetite, though slightly higher than the previous quarter.
Capital Position and Operational Efficiency
Wisr’s capital position remains solid with unrestricted cash rising to $22.5 million following the sale of $5 million in Freedom 23 G1 notes. The company has two warehouse facilities with a combined commitment of $650 million and $99 million undrawn capacity, alongside $15 million available from its corporate facility to support ongoing growth. CEO Andrew Goodwin highlighted the role of technology and automation investments in driving operational efficiency and scalability across loan products.
Customer Experience and Outlook
Customer satisfaction remains high, with a Net Promoter Score of +74 and recognition for the best mobile experience for the second consecutive year. Looking ahead, Wisr has upgraded its FY25 loan origination growth guidance to over 90%, up from the previous 75%, signaling confidence in sustained momentum. The company’s priorities remain focused on sustainable loan book growth, risk-adjusted returns, and platform enhancements to support smarter financial decisions for Australians.
Bottom Line?
Wisr’s upgraded guidance and strong Q3FY25 results set the stage for a pivotal final quarter in FY25, with growth and credit quality firmly in focus.
Questions in the middle?
- Will Wisr sustain its rapid loan origination growth into Q4FY25 and beyond?
- How will the slight increase in net losses impact profitability as the loan book scales?
- What further technology enhancements could drive efficiency and risk management?
