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Non-bank lenders Plenti and Harmoney both saw share prices spike after achieving significant loan-origination milestones.
In a statement Monday, Plenti said it had hit record loan originations of $174.2 million in the quarter to March 31, a 120% increase over the prior corresponding period and a 32% spike over the prior quarter. The company’s total loan portfolio now sits at $615 million – 61% higher than it was at the end of March 2020 – while loan deferrals tumbled to 0.21% of the portfolio, below pre-COVID levels, according to a report by The Australian.
The news caused Plenti’s shares to spike 12% to $1.12.
Plenti CEO Daniel Foggo said that he was positive the company’s loan portfolio would soon hit $1 billion.
“With strong momentum across each part of our business, we are powering toward our $1 billion loan book milestone,” he said. “There’s no doubt an improving economy, strengthening employment levels and strong consumer confidence has supported our markets, although our gains in market share are the overriding factor supporting our growth.”
Foggo said that as demand for credit increased, consumers would increasingly turn to non-bank lenders.
Meanwhile, New Zealand-based personal lender Harmoney said Monday that it had surpassed $NZ2 billion ($1.85 billion) in originations, with new customer acquisition in Australia accounting for almost a quarter of all new customer loans.
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Harmoney CEO David Stevens told The Australian that originations growth was being driven by the improving economy, with more customers choosing to supplement bank loans with loans from Harmoney.
“What seems to be compelling to consumers is the rise of customer-focused fintechs offering a combination of competitive rates with convenience and flexibility – and this is driving more people to complement their regular bank with a loan specialist like Harmoney,” he said.
Harmoney shares rose 4.1% to close at $2.03, The Australian reported.
Ryan Smith is currently an executive editor at Key Media, where he started as a journalist in 2013. He has since he worked his way up to managing editor and is now an executive editor. He edits content for several B2B publications across the U.S., Canada, Australia, and New Zealand. He also writes feature content for trade publications for the insurance and mortgage industries.
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