Prospa (ASX: PGL), an online lender serving Australia and New Zealand, released a third quarter 2021 business report indicating that loan origination volumes returned to pre-COVID levels faster than expected.
According to the company, loan grants in Q3 2021 (January-March) stood at $ 121 million – a stable level compared to the same period in 2020 ($ 122.2 million). Loan initiations increased from the prior quarter by approximately $ 20 million ($ 100.7 million in Q2).
During the quarter, 81% of loans were from small business loans and the remainder from Prospa’s line of credit offering.
New Zealand saw an 11% increase from Q2, hitting a record for the month of the month.
Total revenue in the third quarter was $ 28.5 million, up 3% from the second quarter.
Prospa said the recovery in the SME sector has benefited the online lender as demand increased for its lending products.
Greg moshal, CEO of Prospa, issued the following statement:
“Prospa experienced better than expected original growth, driven by strong economic confidence and investments in the SME sector. Our new loans for the quarter ended in March were $ 121 million, which represents a return to pre-COVID activity levels for our Australian business. New Zealand was another highlight with origins up 11% for the quarter, propelled by a new record of new loans in March. It is especially encouraging to see such high activity levels in the March quarter, given that it is generally a quieter time than the busy December vacation period. This quarterly result shows good momentum for Prospa with a return to growth in turnover and average gross credits. “