The Plenti Group Ltd (ASX: PLT) share price is rising this morning after the fintech company announced another solid quarterly update, in which it reported record loan originations.
At the time of writing, the Plenti share price is up by 2.13% to $1.20.
What moved the Plenti share price today
The company has released an update on its third-quarter FY21 trading results for the period ending 31 December 2020.
It reported record loan originations of $130.9 million, which is 58% above prior corresponding period, and 22% above the prior quarter. Record monthly loan originations were achieved in six consecutive months, from July 2020 all the way to December 2020.
As in the previous half, growth was led by automotive lending, which is up by 273% on the prior corresponding period. Renewable energy and personal loan originations were also up by 19% and 8%, respectively, with both portfolios continuing to recover from the COVID-19 disruptions.
The increase in loans has brought Plenti’s total loan portfolio to $508 million, up by 46%. The $500 million milestone is the first for an Australian fintech consumer lender, according to the company.
On the funding side, Plenti upsized its secured automotive loan warehouse facility to $275 million from $150 million during the quarter. It also established a new $100 million warehouse funding facility to support growth in renewable energy, as well as personal loan originations.
The company advised that its credit performance is strong and leads the industry, with low levels of losses and 90+ day loan payment arrears declining to 0.32%.
Strong first half
Today’s solid quarter update follows a strong half, where Plenti delivered ahead of prospectus forecasts on all key financial metrics.
In the half ending 30 September 2020, the company reported a revenue of $26 million, representing growth of 41% on the prior corresponding period and 2% ahead of prospectus forecast.
It also achieved record loan originations of $167.0 million for the half, 33% above the first half of FY20 and 7% ahead of its prospectus forecast.
About the Plenti share price
Plenti first listed on the ASX on 23 September 2020 at an offer price of $1.66. On its ASX debut, the Plenti share price had a shocker, closing the day at $1.30, down 21% from its listing price.
At the current share price, the company is still down almost 30% from its initial public offer (IPO) price.
Plenti commands a market capitalisation of $198 million.
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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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