Wisr Boosts FY25 Loan Growth Guidance Above 90% Amid Strong Q3 Performance
Wisr has upgraded its FY25 loan origination growth guidance to over 90%, driven by a 115% surge in Q3FY25 loan originations and improved credit quality metrics. The fintech lender’s disciplined growth and technology investments position it well for scaling in a shifting personal and vehicle lending market.
- 115% year-on-year loan origination growth in Q3FY25 to $111 million
- Upgraded FY25 loan origination growth guidance to over 90%
- Total loan book grew to $777 million with improving portfolio yield and NIM
- Credit quality strengthened with average credit score rising to 800 and 90+ day arrears falling to 1.48%
- Strong capital position with $22.5 million unrestricted cash and $15 million undrawn corporate facility
Robust Loan Growth and Upgraded Guidance
Wisr has reported a standout Q3FY25, with loan originations soaring 115% year-on-year to $111 million, marking a significant acceleration from the prior quarter’s $93.5 million. This momentum has prompted the company to raise its full-year guidance for loan origination growth to over 90%, up from the previous target of 75%. Such growth reflects Wisr’s ability to capitalize on structural shifts in the Australian lending market, particularly as major banks retreat from personal and secured vehicle lending segments.
Loan Book Expansion and Margin Enhancement
The total loan book expanded for the second consecutive quarter, reaching $777 million as of March 2025. Both personal loans and secured vehicle loans contributed to this growth, increasing by 3% and 2% respectively. Alongside volume growth, Wisr improved its portfolio yield to 11.25%, up 54 basis points year-on-year, and boosted its net interest margin (NIM) to 5.60%, a 36 basis point increase. These margin improvements underscore the company’s disciplined approach to loan pricing and funding cost management.
Strengthening Credit Quality and Arrears Management
Credit quality metrics continue to improve, with the average Equifax credit score of new loans rising to 800, the highest in three quarters. Wisr’s 90+ day arrears rate declined to 1.48%, down 23 basis points from the previous year, reflecting effective risk management and the impact of its new data-driven arrears management platform. Net losses also improved to 1.99%, comfortably within the company’s risk appetite, despite a slight uptick from the prior quarter.
Capital and Funding Strength Support Growth Ambitions
Wisr’s capital position remains robust, with $22.5 million in unrestricted cash and $15 million available from an undrawn corporate facility. The company has successfully raised $875 million through four asset-backed securities (ABS) transactions, supporting its loan book growth and funding diversification. Progress on a third warehouse facility, combining personal and secured vehicle loans with new senior and mezzanine funders, signals ongoing efforts to scale funding capacity efficiently.
Technology-Driven Operational Efficiency
Investments in automation and proprietary technology continue to underpin Wisr’s scalable growth model. Approximately 79% of loan approvals are now automated via an AI-powered decision engine, enhancing speed and accuracy without compromising credit standards. The rollout of a cloud-native loan ledger platform and a sophisticated arrears management system further streamline operations, reduce manual processes, and improve real-time reporting capabilities.
Market Position and Structural Tailwinds
Despite strong growth, Wisr’s market share remains modest at under 2% in personal loans and below 1% in secured vehicle lending, highlighting significant runway for expansion. The company benefits from structural tailwinds as major banks continue to reduce their presence in these segments, creating opportunities for agile non-bank lenders. Wisr’s diversified distribution channels, including an established broker network and direct-to-customer platform, position it well to capture this market shift.
Bottom Line?
Wisr’s upgraded guidance and technology-led growth strategy set the stage for a potential $1 billion loan book, but sustaining credit quality amid rapid expansion will be key to watch.
Questions in the middle?
- How will Wisr manage credit risk as loan originations accelerate beyond 90% growth?
- What impact will rising interest rates and economic conditions have on portfolio yield and arrears?
- How quickly can Wisr scale its third warehouse facility to support ongoing loan book growth?
