June 2022 proved to be a quieter month, which we’ve come to expect as summer holiday expenses tend to take preference over most other financial obligations. But, despite declines overall, we expect them to pick up again soon. Loan originations and investments decreased to €12,913,190. There were declines in Secondary Market activity and cash recoveries, but that was expected after the unprecedented defaulted loan sale we finalized in May. Read more:
In June, we welcomed 1,807 new investors to Bondora, and our investment total has increased to over €625M. Investors have earned more than €77M in returns.
With loan originations, there was an overall decline of 17.3% to €12,913,190. This is more than last month’s 0.5% decline. There was a decrease in all three markets, but Spain had the largest decline (-56.4%) to €360,784. This is the first decline in Spanish originations since relaunching Spain in September 2021. The 2nd largest origination decrease came from Finland (-19.4%), with €6,306,562. Despite their decline, Finland still has the majority of originations, with 53.0%. However, Estonia is catching up with 44.2%. Spain’s share managed to increase to 5.3%, despite its decline in originations. The average interest rate decreased minimally from 22.3% to 22.4%.
As has become quite normal, Secondary Market activity decreased after showing increases last month. Activity decreased by 24.0% to a total of €138,878 transacted. In June, all the categories decreased, with Portfolio Manager dropping the most (-30.8%). Manual transactions followed with a -24.1% rate, and API transactions with -22.3%. Manual transactions still have the largest share of all transactions (49.2%), which equals €68,345. API transactions still reign supreme in the current transaction category, with a 47.3% share. When selling defaulted loans, those sold at a discount are still the most popular, making up 91.6% of all such transactions.
In May, we finalized a sale of old, defaulted loans from the Estonian market. So naturally, after this sale, and one of our highest collection and recovery figures in history, June’s cashflow figures will be lower than May’s. Overall, our cash recovery decreased by 63.0% to €815,746. As per the last couple of months, the majority was recovered from Estonia, which is €399,234 and a 48.9% share. In contrast, the number of recovered loans increased by 3.4% to 78,972 loans recovered. The current 2014-2022 recovery rate is a solid 50.7%.
As expected, product funding for all 3 investment products declined. There was a 16.5% overall dip, with the API falling the hardest (-25.0%). But, despite having the largest declining percentage, Go & Grow had the largest effect on the overall funding, as it makes up 96.9% of all investments compared to the API, which is less than 1.0%. Go & Grow investments fell from €15,548,394 to €12,516,355. Portfolio Manager remains the 2nd most popular product with €228,825, Portfolio Pro follows with €166,108, and lastly, the API trails with €1,902:
Product funding figures:
Go & Grow – 16.5%
Portfolio Manager – 16.5%
Portfolio Pro – 17.3%
API – 25.0%
In summary:
Based on historic trends, the summer tends to be a time with fewer record-breaking moments and somewhat lower figures. But, we look at the bigger picture and continue to build online platforms that make it easier for people to manage their money and gain financial independence. We expect to see an increase in investments and originations again once summer winds down.
If you enjoy these breakdowns, follow our blog for more in-depth analyses of the Bondora market weekly. So, stay tuned to better determine your investment strategy, loan portfolio preferences, and more.
