European investment platform Bondora reveals that October made solid gains in the origination and investment front.
Especially when considering “the declines from September.” Investment funding via Bondora “increased by 21.3% to over €14M.” And loan originations “exceeded €15M.” Secondary Market activity “increased once again, and collection & recovery figures showed contrasting stats.”
In October, 1,464 new investors reportedly joined Bondora. Investors have “earned more than €84M in returns on their total investment amount of over €682M.”
October was “a good month for loan originations, with the overall number rising by 19.9% to €15,065,630.”
Every loan market “had increased its originations.” The Netherlands loan market, “launched on 23 September, has increased its origination share to 4.4% of the total portfolio, equaling €660,540 worth of loans.”
The Spanish market also “continues increasing its originations, now taking up a 7.6% share, totaling €1,141,131 worth of loans.” The Estonian market “originated €5,104,143 worth of loans, totaling a 33.9% share.”
Finland still “has the largest share of originations, totaling 54.2%, which is €8,159,816 worth of loans.” The average interest rate “decreased from 22.6% to 21.8%.”
After September’s temporary increase, the Secondary Market transactions “returned to the trend of decreased activity.” Transactions “increased nosedived by 19.0% to €81,801’s worth of transactions.”
All the categories “mirrored this decline, with Portfolio Manager plummeting the most—declining by 86.4%. It now accounts for just 755 transactions (a 0.9% share).” Manual transactions still “have the largest share of transactions (65.5%) despite declining by 18.5%. API transactions declined by 7.7% and accounted for €27,487’s worth of transactions.”
Bondora’s October collection and recovery statistics “showed a bit of contrast, as the number of loans increased, but the amount of cash recovered decreased noticeably.”
As noted in the update:
“The number of recovered loans increased by 2.4% to 85,329. But the total cash recovered decreased considerably by 26.1% to €826,505. In October, most loans and cash were recovered from Estonia (45.8% and 50.6%, respectively). Finland followed with 33.4% of recovered loans and a 42.1% cash share. Lastly, 20.8% of loans were recovered in Spain, equaling a 7.3% share of cash recovered. (The Netherlands is not yet included, as it’s a brand-new market.) The current 2014-2022 recovery rate declined slightly from 49.8% to 48.9%.”
The team at Bondora added:
“After two months of decline, investment product funding rebounded with an impressive 21.3% increase. Investors added a total of €14,861,329 to their Bondora accounts. Once again, Go & Grow’s figures had the most significant effect, as it is the most used investment product, making up 96.9% of all investments. It received €14,404,915 in investments. Portfolio Manager received €268,185, and Portfolio Pro had €186,207. The API made up the remaining €2,022.”
Investment product funding figures:
- Go & Grow + 21.3%
- Portfolio Manager + 22.1%
- Portfolio Pro + 19.9%
- API + 56.1%
Although there were some declines in Secondary Market activity, “the other stats certainly made up for it.”
Origination and investment figures “showed impressive gains.” Collection and recovery statistics “had a bit of both, with impressive increases in the number of loans recovered but declines in the amount of cash collected.”