Can Plenti Sustain Growth While Managing Rising Costs and Credit Risks?
Plenti Group Limited reported a stellar FY25 with a 126% surge in Cash NPAT to $13.8 million, driven by robust loan portfolio growth and operational efficiency. The fintech lender is targeting a $3 billion loan book by March 2026, leveraging technology and strategic partnerships.
- 126% increase in Cash NPAT to $13.8 million in FY25
- Loan portfolio grew 19% to $2.5 billion
- Revenue rose 23% to $259 million
- Cost-to-income ratio improved to 23.9%
- Strategic partnerships with NAB and Tesla fuel growth
Strong Financial Performance
Plenti Group Limited (ASX: PLT), Australia's largest fintech consumer lender, has delivered an impressive FY25 financial performance, highlighted by a 126% increase in Cash NPAT to $13.8 million. This surge was underpinned by a 23% rise in revenue to $259 million and a 19% growth in the loan portfolio, which now stands at $2.5 billion. The company’s cost-to-income ratio improved significantly to 23.9%, reflecting enhanced operational efficiency amid expanding scale.
Growth Across Lending Verticals
The growth momentum was broad-based across Plenti’s core lending verticals. Automotive loans, including the NAB Powered by Plenti program, saw a 17% increase in portfolio size to $1.43 billion, supported by partnerships with Tesla and Cadillac. Renewable energy lending grew 25% to $341 million, driven by strong installer relationships and the scaling of the GreenConnect platform. Personal lending originations rose 24%, reaching $519 million, boosted by technology investments that improved credit decision speed and customer experience.
Technology and Strategic Partnerships
Plenti’s proprietary technology platform remains a cornerstone of its competitive advantage, enabling fast, automated credit decisions and seamless customer journeys. The company expensed $14.1 million in technology investment during FY25, emphasizing its commitment to innovation. Strategic collaborations, notably with NAB, have accelerated origination volumes, with NAB Powered by Plenti car loans growing 241% in the fourth quarter. These partnerships validate Plenti’s integration capabilities and market relevance.
Credit Quality and Funding
Maintaining a prime borrower focus, Plenti reported a stable net loss rate of 1.10% for FY25, supported by a weighted average Equifax credit score of 846 among borrowers. The company’s diversified funding platform, including three asset-backed securities (ABS) transactions totaling over $1.3 billion, provides a robust foundation for growth. Funding costs remained well-managed, contributing to a net interest margin expansion to 5.3%.
Outlook and Growth Ambitions
Looking ahead, Plenti aims to grow its loan book to $3 billion by March 2026, with a medium-term aspiration of reaching $5 billion. The company plans to leverage its technology stack, artificial intelligence capabilities, and deepening partner relationships to sustain origination growth and profitability. Operational efficiency targets include delivering $25 million in cost savings as the loan portfolio scales. Plenti’s strategic roadmap outlines a disciplined expansion into adjacent products and new verticals over the next five years.
Bottom Line?
Plenti’s FY25 results set a strong foundation, but scaling rapidly while maintaining credit quality and cost discipline will be key to sustaining momentum.
Questions in the middle?
- How will Plenti manage credit risk amid rapid loan book expansion?
- What impact will rising interest rates have on Plenti’s net interest margin?
- How effectively can Plenti scale its NAB partnership and new verticals?