Here at Bondora we are committed to providing our investors the information they need for investing on our platform. We hope that this performance update helps to further understand the returns that you get from investing on Bondora.
KEY TAKEAWAYS
- All countries have been profitable since introduction of Bondora Rating in January 2015
- Returns in Estonia have been steady, whilst returns in Finnish and Spanish loans have been continuously increasing and have caught up with Estonia by now
- Most of our country-grade segments (other than B, C and D rating in Spain before 2nd generation of Bondora Rating) have produced returns in line or above the expected return
Actual and targeted Bondora net returns by grade and country
 Estonia |
AA | A | B | C | D | E | F | HR | ALL | |
|---|---|---|---|---|---|---|---|---|---|---|
| 2015 Q1 |
Actual | 14,90% | 14,96% | 17,21% | 20,62% | 25,47% | 29,32% | 30,96% | 26,46% | 21,76% |
| Target | 12,98% | 13,82% | 14,30% | 15,74% | 18,51% | 20,34% | 23,14% | 23,46% | 16,88% | |
| 2015 Q2 |
Actual | 15,09% | 10,33% | 16,56% | 18,73% | 26,34% | 24,71% | 37,62% | 30,05% | 20,86% |
| Target | 13,11% | 13,83% | 14,26% | 15,96% | 18,47% | 20,49% | 23,06% | 23,62% | 16,81% | |
| 2015 Q3 |
Actual | 14,76% | 15,63% | 17,18% | 21,06% | 23,06% | 31,20% | 36,75% | 37,98% | 23,17% |
| Target | 13,09% | 13,84% | 14,27% | 15,85% | 18,39% | 20,32% | 23,15% | 23,85% | 17,21% | |
| 2015 Q4 |
Actual | 13,71% | 15,09% | 16,31% | 19,95% | 25,25% | 23,37% | 31,58% | 42,07% | 22,35% |
| Target | 12,20% | 13,17% | 13,81% | 15,50% | 17,59% | 18,41% | 21,29% | 20,83% | 16,65% | |
| 2016 Q1 |
Actual | 10,94% | 11,69% | 13,81% | 18,32% | 22,34% | 26,98% | 29,81% | 35,51% | 21,59% |
| Target | 10,62% | 11,32% | 12,09% | 14,38% | 16,18% | 17,51% | 18,28% | 17,96% | 15,48% | |
 Spain |
AA | A | B | C | D | E | F | HR | ALL | |
|---|---|---|---|---|---|---|---|---|---|---|
| 2015 Q1 |
Actual | 2,06% | -4,64% | -3,10% | 11,80% | 19,92% | 18,48% | 13,85% | ||
| Target | 12,61% | 12,85% | 14,39% | 16,17% | 18,32% | 20,33% | 17,69% | |||
| 2015 Q2 |
Actual | -9,00% | -6,41% | 12,15% | 22,91% | 20,39% | 14,28% | |||
| Target | 12,80% | 12,80% | 14,36% | 16,29% | 18,32% | 20,31% | 17,56% | |||
| 2015 Q3 |
Actual | 17,41% | -9,37% | 16,00% | 22,65% | 17,41% | 15,63% | |||
| Target | 13,01% | 14,74% | 16,20% | 18,32% | 20,31% | 17,56% | ||||
| 2015 Q4 |
Actual | 21,50% | -9,37% | 15,27% | 24,23% | 18,81% | 16,51% | |||
| Target | 13,41% | 14,93% | 16,22% | 17,85% | 18,06% | 17,07% | ||||
| 2016 Q1 |
Actual | 28,01% | 30,46% | 27,69% | 28,19% | |||||
| Target | 14,61% | 14,58% | 13,93% | 14,05% | ||||||
 Finland |
AA | A | B | C | D | E | F | HR | ALL | |
|---|---|---|---|---|---|---|---|---|---|---|
| 2015 Q1 |
Actual | 12,46% | 12,02% | 14,54% | 18,42% | 25,33% | 38,06% | 15,71% | ||
| Target | 12,88% | 13,33% | 14,41% | 16,58% | 17,98% | 20,90% | 14,86% | |||
| 2015 Q2 |
Actual | 8,53% | 14,66% | 16,36% | 14,35% | 13,22% | 20,42% | 14,80% | ||
| Target | 12,88% | 13,31% | 14,70% | 16,62% | 18,04% | 21,04% | 15,41% | |||
| 2015 Q3 |
Actual | 12,24% | 13,85% | 17,53% | 19,88% | 13,83% | 29,39% | 17,62% | ||
| Target | 12,90% | 13,28% | 14,71% | 16,49% | 18,54% | 20,81% | 15,62% | |||
| 2015 Q4 |
Actual | 1,64% | 12,46% | 19,57% | 18,93% | 14,85% | 20,94% | 17,27% | ||
| Target | 12,89% | 12,80% | 14,49% | 16,02% | 16,86% | 18,11% | 15,23% | |||
| 2016 Q1 |
Actual | 13,59% | 15,27% | 19,43% | 24,82% | 25,09% | 14,49% | 21,39% | ||
| Target | 9,87% | 11,22% | 12,56% | 13,44% | 14,24% | 14,40% | 13,21% | |||
Estonia
- In Estonia the average net return has firmly been between 20-24%.
- The actual return has exceeded targeted return by 4-6 percentage points.
- The Estonian loan portfolio has performed above target return, except for 2015 Q2 when A grade performed below targeted level.
- We can see that the riskier the grade the higher the net return.
- We can conclude that Estonian loans are performing 97,5% above target return.
Spain
- In Spain the average net return has been between 13-17%.
- C and D grades have performed negatively over some quarters.
- F grade has shown the best performance.
Finland
- In Finland the average net return has been between 15-22%.
- The actual return has mostly outperformed targeted return, with the exception of 2015 Q2.
- We can see that the riskier the grade the higher the net return.
- The positive dynamics can be seen in 2016 Q1 when the actual return goes above 21%.
Actual and targeted Bondora net returns across portfolio per quarter
| 2015-Q1 | 2015-Q2 | 2015-Q3 | 2015-Q4 | 2016-Q1 | |
|---|---|---|---|---|---|
| Actual | 17.93% | 17.19% | 19.29% | 19.68% | 22.48% |
| Target | 16.34% | 16.31% | 16.63% | 16.28% | 14.66% |
The returns are growing steadily and beating target returns. We are more aggressive with our collection processes and continuously keep improving our credit underwriting model.
Actual and targeted Bondora net returns across previous 7 years
| 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | ||
|---|---|---|---|---|---|---|---|---|
| Country | Actual | Actual | Actual | Actual | Actual | Actual | Actual | Target |
| EE | 16.36% | 29.12% | 23.68% | 22.96% | 22.85% | 23.38% | 21.88% | 16.88% |
| ES | -4.69% | 0.88% | 14.73% | 17.50% | ||||
| FI | 12.99% | 13.78% | 16.04% | 15.30% | ||||
| SK | -4.09% | |||||||
| ALL | 16.36% | 29.12% | 23.68% | 22.96% | 20.63% | 14.95% | 18.25% | 16.40% |
Bondora has seven years of data and track record available publicly since we launched in 2009 and that is something no other platform in the industry can demonstrate.
The history of Bondora Rating
Prior to 2015
Investors invested into loans across all countries based on the data and filters that were available on Bondora. There was neither risk-based pricing nor risk estimates from Bondora – investors had to decide themselves which loans seemed to have a good risk-return.
January 2015
1st generation of Bondora Rating and risk-based pricing for Bondora loans was introduced.
December 2015
2nd generation of Bondora Rating and risk-based pricing for Bondora loans was introduced.
In our previous Bondora portfolio performance update we also covered the advantages and objectives of Bondora Rating in more detail. If you’re interested – have a look HERE.
