European P2P Lender Bondora Reports Portfolio Performance Maintaining Course Despite Moderate Decline

After a “positive jump” in the Bondora portfolio during the month of August 2021, originations had slightly lower return rates “as a whole in September.”

European P2P lender Bondora also mentioned that originations still “show good returns when compared to their target rates.”

Here are the Key statistics shared by Bondora:

  • There was a 0.2% decline in Bondora returns for 2021 originations
  • Q3 2021 originations returned 9.5%
  • More Estonian AA and F-rated loans were originated in September than in August
  • Estonian originations saw better than expected returns for low rating categories and worse than expected returns for higher rating categories

Yearly performance

A 15.4% interest rate on 2021 originations was “down 0.2% compared to August,” the Bondora team noted while adding that despite this slight decline, it still “holds strong above the target rate of 9.5%.” Estonian originations in 2021 “showed strength on the month, growing by 0.2% to 18.2%,” the update noted while adding that Finnish originations “had the opposite trend, declining by 0.2% to 7.2%.”

The report added that 2020 originations were also “on the growth path, climbing by 0.2% to 16.7%.” This growth was “led by Estonian originations, which had a return rate of 21.0% compared to 20.6% last month,” the Bondora team noted.

Quarterly Performance

As noted by Bondora:

“September marked the first reported return rates for 2021 Q3 originations, coming in at 9.5% compared to their target rate of 8.9%. Additionally, the previous five quarters had higher return rates than last month, with 2020 Q4 originations returning quite well at 21.3%. This is a whopping 10.2% higher than their target rate.”

Finland

For the second quarter in a row, only D-rated loans “were originated in the Finnish market.” But Q3 had a relatively low return rate of 4.6%, which is “below the target of 6.8%.” On the flipside, 2021 Q2 originations had “a better return rate of 7.7% compared to 7.0% in August,” the report added.

Estonia

In the most recent quarter, more AA and F-rated loans “were originated by Bondora for Estonian borrowers.” Overall, for 2021 Q3, lower-rated originations “performed better than higher-rated originations with A, AA, and B-rated originations returning below their target rates,” the report noted while adding that “in contrast, C, D, E, and F-rated originations came in above their target rates.”

Bondora also mentioned that “one positive thing to note for 2021 Q2 originations was AA-rated originations.” After returning ‑3.1% last month, this category jumped into “a positive return rate of 0.9% in September.” In fact, all 2021 Q2 rating categories “had higher return rates than last month,” the report added.

Spain

Both C and HR-rated Spanish originations for 2021 Q3 had “0% return rates,” the report revealed. Meanwhile, all 2021 Q1 originations (the most recent quarter originations) “were lower than in August. Still, HR-rated originations in the quarter remained above their target rate at 19.9%,” the report noted.

The Bondora team concluded:

“Despite having slightly lower return rates in September, Bondora originations are overall still in good standing compared to their target rates. As a whole, Q3 2021 originations had a 9.5% return rate, which is 0.6% above the target. Estonian originations still make up the bulk of the portfolio.”

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