Move over Big four! This ASX non-bank lender just had a record quarter, and its share price is soaring 12%

A piggy bank blasts off into the sky.A piggy bank blasts off into the sky.

Whilst ASX 200 bank basket continues to outperform, one smaller lender has shone through today.

Shares of online business lender Prospa Group Ltd (ASX: PGL) are surging into the green today following the release of its quarterly update today.

At the time of writing on Friday, the Prospa share price is currently trading 11.54% higher at 87 cents apiece.

Prospa share price prospers following quarter

Key takeouts from the rival to the big 4 ASX 200 banks include:

  • Full-year EBITDA of c.$12 million1 (FY21 $0.5 million) Originations of $245.7 million in 4QFY22, up 35% on the prior corresponding period (pcp)
  • Prospa’s highest month ever recorded for originations reaching $104.6 million in June 2022
  • Revenue reached $53.9 million, up 61% against pcp
  • Total active customers increased to ~16,100, an additional ~2,100 from the prior quarter
  • Credit losses expected to remain within the board-mandated loss rate range of 4-6%.

What else happened this quarter for Prospa?

It was a strong period for loan originations, recording $104 million in June alone.

As a result of this originations growth, the closing loan book increased to $701.3 million, an increase of 20% from the prior quarter.

Gross Loans reached $633.4 million for the quarter, an increase of 16% from the prior quarter’s $546 million.

Total active customers increased to approximately 16,100 last period as well. This represents a gain of around 2,100 from March 2022.

The company achieved this result “while maintaining an industry-leading Net Promoter Score above 80”.

In accordance with its buyback program announced in February 2022, Prospa has now repurchased 690,876 ordinary shares up to 30 June 2022.

Management commentary

Speaking on the results, Greg Moshal, Co-Founder and Chief Executive Officer of Prospa said:

We are incredibly pleased with the momentum and outcomes the team has achieved. Each quarter
this year, they’ve come back with greater enthusiasm. Their hard work has translated to recordbreaking results, including the $104.6 million originations in June.

Our partners have played an integral role in the achievement of Prospa’s results, placing trust in our
products and advocating them to their small business clients. It gives us great satisfaction to know
that our funding solutions are supporting small business owners to achieve their business goals. The
success stories reaffirm our commitment to keep small business moving, and keep us focused on
closing the funding gap for small businesses as a strategic priority.

Prospa is now pushing higher alongside the ASX 200 bank share basket, securing a 21% gain this year to date.

The post Move over Big four! This ASX non-bank lender just had a record quarter, and its share price is soaring 12% appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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