European Investment Platform Bondora Reports Slight Decline in Origination Numbers

Investment figures and origination numbers dipped “slightly” in November, according to an update from Bondora.

Investors added just shy of €14M to their accounts, Bondora revealed. And a total of just over €14M was “originated in loans across all [their] active markets.”

Although they decreased, the numbers are “still near what we’ve come to expect,” Bondora noed in a blog post.

In October, there was “a 21.3% increase in Investment product funding. But in November, we saw it rebound with a slight 5.8% decline.” Investors added “a total of €13,997,047 to their accounts.”

Each investment product’s decrease is shown here:

  • Go & Grow – 5.8%
  • Portfolio Manager – 8.0%
  • Portfolio Pro – 2.0%
  • API – 5.4%

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.” Nearly all their investors “prefer the hands-off approach of secure, passive investing with Go & Grow.” It reportedly “received €13,568,020. Portfolio Manager received €246,668, and Portfolio Pro had €182,447.” The API has “made up the remaining €1,912.”

In November, loan originations “had an overall total of €14,103,044. An impressive amount, despite the decline of 6.4% from October.” Almost all the loan markets “decreased their totals by small percentages. Spain was the exception, increasing by 3.0%.”

Spanish-based originations “increased to €1,174,809. This equals an 8.3% share.”

Finland’s origination total “declined to €7,988,359, which equaled the largest share of originations, 56.6%.”

In Estonia, a total of €4,939,876 loans “were originated.” This is “a total share of 35.0%.”

The Netherlands is currently “closed for new originations as we evaluate the next steps for this market.” This is “an essential step in our expansion plans to ensure we only scale markets that offer good-quality loan portfolios for our investors.”

As mentioned in the update:

“Across all our active loan markets, the overall average interest rate dropped slightly from 21.8% to 21.7%. Once again, the average Spanish interest rate remained at 21.8%. Estonia’s average interest rate decreased from 27.2% to 25.0%. In Finland, it remained stable at 19.7%. The Dutch market average interest rate is unaccounted for.”

The team at Bondora added:

“C-rated loans remain the most populated risk-rating category in all our markets. Estonia’s C-rated share decreased again this month from 21.1% to 20.8%. In Finland, it remains stable at 49.1%. In Spain, C-rated loans make up the largest category, declining from 7.6% to 6.3%. However, we also started originating D-rated loans in Spain, which had a total share of 2.1% of all loan originations in November.”

In Estonia, the D-rated loan category “increased slightly from 11.4% to 11.6%.”

The B-rated category “dropped from 0.9% in October to 0.3% in November.”

In Finland, the D-rated category “more than doubled, going from 2.5% to 5.1%.” The B-rated category “remains the smallest in Finland, with 2.5%, declining by 0.1% from October.”

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