Prospa (ASX:PGL), an online lender serving Australia and New Zealand, has released a Q3 2021 trading report stating that loan origination volumes have returned to pre-COVID levels faster than anticipated.
According to the company, loan originations in Q3 2021 (Jan-March) stood at $121 million – flat versus the same period in 2020 ($122.2 million). Loan originations were up from the previous quarter by around $20 million (Q2 $100.7 million).
During the quarter, 81% of loan originations were from small business loans and the rest from Prospa’s line of credit offering.
New Zealand delivered an 11% increase versus Q2 achieving a record for the month of Month.
Total revenue during Q3 was reported at $28.5 million up 3% versus Q2.
Prospa said the recovery in the SME sector has been to the benefit of the online lender as demand has increased for its lending products.
Greg Moshal, CEO of Prospa, issued the following statement:
“Prospa has seen better than anticipated growth in originations, driven by strong economic confidence and investment within the SME sector. Our new loans for the quarter ended March were $121 million, which is a return to pre-COVID levels of activity for our Australian business. New Zealand has again been a highlight with originations rising 11% for the quarter propelled by a fresh record for new loans in March. It is particularly encouraging to see such high levels of activity in the March quarter considering this is typically a quieter period than the busy December holiday season. This quarterly result shows good momentum for Prospa with a return to growth in revenue and average gross loans.”