2023 starts where 2022 ended, with a “strong wave” of loan originations and investments. Investors added a total of €17,087,257 to their accounts, according to an update from Bondora.
And loan originations also launched into the new year “with an impressive €17,137,703.”
In January, 2,179 new investors joined Bondora. In the same month, investors reportedly earned “over €2M in returns, and their total investment amount increased to €732M.”
Loan Originations
The first loan originations for the year “started with a bang, increasing by 6.4% to €17,137,703.”
Bondora further revealed that “the bulk of this increase came from Finland, with €11,364,004. This is one of the Finnish market’s highest loan origination figures ever.”
Estonia’s figures “dropped by 15.5% but still account for €4,555,400’s worth of loans.”
Spain also “increased its total loan originations by 1.3% to €1,165,880.” And the Netherlands market “reopened and is performing well, with €52,419 originated since reopening at the start of the year.”
The average interest rate “remained relatively stable, stabilizing at 19.8%. Finnish loans now have the overwhelming majority, with a 66.3% share.” Estonia follows “with 26.6%, and Spain with 4.9%. The Dutch market is currently taking up 0.3%.”
Secondary Market
Once again, activity on the Secondary Market “increased.” Although it wasn’t such a mammoth increase as last month’s 86.3%, “it was still a solid 7.3% incline to a total of €161,127 worth of transactions.”
But, when looking at the categories of transactions, “only the API had an increase. Its transaction activity grew by 68.4% to €58,017.”
But Portfolio Manager and Manual transactions (-8.5%) “declined by 43.3% and 8.5%, respectively.” But, despite its decrease, Manual transactions still “have the most significant share, reaching €98,457 worth of transactions.”
Collection and Recovery
After finalizing the sale of “a defaulted Estonian loan portfolio in December, it’s only natural that collection figures would revert to lower, more normal figures in January. And although it’s less than in December, the amount recovered is still very impressive.”
Bondora further noted that “a total of €990,169 was recovered to a total of 85,583 loans. Once again, most cash and loans were recovered from Estonia, with €555,468 recovered.”
In Finland, cash recoveries “rose by 6.2% to €390,499. Spain’s cash recovery figures decreased for the second month.” This time “by 12.1%, totaling €44,202. No recoveries are made in the Netherlands, as it’s a brand-new market.”
The 2014-2023 recovery rate “starts 2023 at 60.8%, increasing from 48.0% at the end of 2022.”
This is “due to the high rate of 136.7% for 2023’s recovery rate. As the year progresses, the recovery rate should decline and stabilize.”
Investment product funding
As we saw in December, investment product funding “matches loan originations’ increase. Investments rose by 6.7% to a total of €17,087,257.” This is “setting an excellent tone for the start of the new year, especially when compared to January 2022.”
Go & Grow “received €16,560,635.” This is reportedly 96.9% of “all investments, once again.”
Portfolio Manager followed “with €312,998, a 1.8% share, then Portfolio Pro with €211,733, a 1.2% share, and the API with €1,891. All products, except the API, increased.”
- Go & Grow + 6.5%
- Portfolio Manager + 8.4%
- Portfolio Pro + 3.6%
- API – 4.3%