European P2P lender Bondora reveals that returns are holding steady. Investor returns via the platform for 2021 originations were “higher in July compared to June,” the company noted in a recent update.
Here are the key takeaways for July 2021’s portfolio performance (as shared by Bondora):
- Originations “returned a higher rate of 15.2% for 2021 originations”
- There was a 1.3% “increase in returns for 2021 Q2 originations”
- An outlier in Estonia saw “returns in AA-rated originations for 2021 Q2 fall to -13.0%”
- Returns on Finnish originations “for the most recent quarter were 0.5% higher than in June”
As usual, Bondora has shared country-specific performance.
The 15.2% return rate for 2021 originations “was 0.1% higher than last month,” the company revealed while adding that this was “led by Estonian originations, which came in 0.2% higher to 17.5%.” But Finnish returns “fell below their target rate this month, at 6.7%. 2017 returns grew as well, up by 0.2% to 0.7%,” the Bondora team noted in a blog post.
The most recent quarter of 2021 Q2 “came in with extremely strong returns at 12.6%, representing a 1.3% increase month-over-month,” the company added while noting that the previous quarter, 2021 Q1, “saw its returns drop by only 0.1% to 16.9%, still well above its 10.2% target rate.” All told, the “most recent six quarters had return rates above their targets,” Bondora revealed.
A 5.9% return rate for D-rated Finnish loans—”the only origination category in 2021 Q2—was higher than June’s 5.4% rate.” But it’s still “below the target rate of 6.9%.” In July 2021, the “most significant change was with 2020’s Q4 originations: D-rated loans’ returns fell from 8.5% to 1.8%,” the Bondora team noted.
AA-rated originations for 2021 Q2 “fell dramatically from 0.1% to -13.0% this month” and although, this “seems like an outlier when compared to other rating categories for this quarter,” the Bondora team revealed. Apart from AA-rated originations, “all other rating categories’ return rates increased compared to the previous month” and the highest returns “come, once again, from E-rated originations at an impressive 24.3%,” the company confirmed.
Originations in “all five rating categories had lower returns for 2020 Q1 originations. F-rated originations dropped to a 16.1% return rate, slightly below its 17.1% target” and the same trend can be “seen in almost all the previous few quarters,” Bondora revealed.
The peer-to-peer lender concluded:
“It was another solid month of returns for Bondora originations. When compared to June, returns were overall higher for the most recent quarter of originations, while previous quarter returns are still holding strong.”