The team at European P2P lending platform Bondora reveals that it has been another solid month of growth for recoveries.
Bondora, which has seen nearly 170,000 people invest more than €455 million and have reportedly earned €54 million to date, reports that the amount of cash recovered came in “just under €1 million—the highest figure since March 2021.”
Bondora, which aims to simplify automated investing, has an 11-year track record and allows investors to start “with a minimum of €1.” As noted by the Bondora team, they also recovered “more missed payments for originations than in May, thus continuing this upward trend.”
Bondora’s recoveries of missed payments “totaled 72,080 in June,” the company confirms while noting that this is “a 1.9% increase from May.” Bondora further reveals that “all recovery categories were higher, except for Default and Court recoveries, which declined by 0.9% this month.” As for originating countries, Bondora recoveries consist of the following nations:
- Estonia: 45.4%
- Spain: 24.0%
- Finland: 30.2%
- Slovakia: 0.3%
The peer-to-peer lender’s management pointed out that the uptick in cash recovered in the month “far outpaced the number of missed payments recovered by Bondora.” The company confirmed that €969,573 was recovered during the month of June 2021—a considerable 19.2% increase when compared to figures from May 2021.
The update further noted that the average missed payment recovery “came to €13.45, resulting in a €1.95 increase from last month.” This is reportedly “the first time since March this year that we’re nearing the €1 million mark.”
Bondora added:
“Bailiff recoveries performed the best, accounting for 83.7% of all cash recovered and growing by an impressive 23.7% on the month. Default and court recoveries also grew by a stable 7.8%.”
Recoveries across originating nations have all been significantly higher (with the exception for historical missed payments from Slovakia):
- Estonia: +6.7%
- Spain: +28.3%
- Finland: +34.9%
The Bondora update further revealed:
“The cumulative recovery rate for 2014-2021 came in at 42.9%, compared to 44.0% last month. This minor drop was led by a continued (and expected) decline of the 2021 return rate, which was down 8.5% to 57.6%. Yet, return rates for 2014, 2015, 2016, and 2018 were all higher in June, a positive sign that points to Bondora’s ability to maintain solid recovery numbers even for missed payments that are from loans originated many years ago.”
The report also mentioned that Spanish recoveries for 2021 “continue to come down, but are still well above their historical rates at 102.6%.” The Finnish recovery rate for last year increased from 21.7% to 23.3%, the report added while noting that as for Estonian recoveries, “a notable trend has emerged.”
As stated in the report:
“After peaking in 2014 at 80.0%, the Estonian recovery rate fell for the next three years and bottomed at 34.6% in 2018. However, the next four years showed growth in Estonian recoveries, with a current rate of 74.1%—the highest rate since 2014’s historical peak. While these recovery rates will continue to change over the coming months, this trend is an interesting one to note.”
The report also mentioned that a 1.9% monthly increase in recoveries is not really huge, however, it’s also “a positive sign of the continued dedication of the Bondora team to recover missed origination payments.” And this isn’t just for newly originated loans, the company clarified while noting that “as the recovery rate for 2014, 2015, 2016, and 2018 were all higher in June.”