October made impressive gains in the origination and investment front. Especially when considering the declines from September. Investment funding increased by 21.3% to over €14M. And loan originations exceeded €15M. Secondary Market activity increased once again, and collection & recovery figures showed contrasting stats. Read more:
In October, 1,464 new investors joined Bondora! Investors have earned more than €84M in returns on their total investment amount of over €682M.
October was a good month for loan originations, with the overall number rising by 19.9% to €15,065,630. Every loan market had increased its originations. The Netherlands loan market, launched on 23 September, has increased its origination share to 4.4% of the total portfolio, equaling €660,540 worth of loans. The Spanish market also continues increasing its originations, now taking up a 7.6% share, totaling €1,141,131 worth of loans. The Estonian market originated €5,104,143 worth of loans, totaling a 33.9% share. Finland still has the largest share of originations, totaling 54.2%, which is €8,159,816 worth of loans. The average interest rate decreased from 22.6% to 21.8%.
After September’s temporary increase, the Secondary Market transactions returned to the trend of decreased activity. Transactions increased nosedived by 19.0% to €81,801’s worth of transactions. All the categories mirrored this decline, with Portfolio Manager plummeting the most—declining by 86.4%. It now accounts for just 755 transactions (a 0.9% share). Manual transactions still have the largest share of transactions (65.5%) despite declining by 18.5%. API transactions declined by 7.7% and accounted for €27,487’s worth of transactions.
Our October collection and recovery statistics showed a bit of contrast, as the number of loans increased, but the amount of cash recovered decreased noticeably. The number of recovered loans increased by 2.4% to 85,329. But the total cash recovered decreased considerably by 26.1% to €826,505. In October, most loans and cash were recovered from Estonia (45.8% and 50.6%, respectively). Finland followed with 33.4% of recovered loans and a 42.1% cash share. Lastly, 20.8% of loans were recovered in Spain, equaling a 7.3% share of cash recovered. (The Netherlands is not yet included, as it’s a brand-new market.) The current 2014-2022 recovery rate declined slightly from 49.8% to 48.9%.
After two months of decline, investment product funding rebounded with an impressive 21.3% increase. Investors added a total of €14,861,329 to their Bondora accounts. Once again, Go & Grow’s figures had the most significant effect, as it is the most used investment product, making up 96.9% of all investments. It received €14,404,915 in investments. Portfolio Manager received €268,185, and Portfolio Pro had €186,207. The API made up the remaining €2,022.
Investment product funding figures:
Go & Grow + 21.3%
Portfolio Manager + 22.1%
Portfolio Pro + 19.9%
API + 56.1%
In summary:
Although there were some declines in Secondary Market activity, the other stats certainly made up for it. Origination and investment figures showed impressive gains. Collection and recovery statistics had a bit of both, with impressive increases in the number of loans recovered but declines in the amount of cash collected. Let’s see if the origination growth we had in October continues for the rest of Q4.
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