2020 Q1 performance ahead of target

Things are looking good for the portfolio performance of Bondora. Returns faired more or less the same as last month, which indicates stability. Although the return rate has decreased from last month (albeit with less than one per cent), the last seven quarters are all still out-performing their targets. The returns of 2020 Q1 are also higher than 2019 Q4.

Bondoras portfolios continue to perform ahead of targets
Despite the tough economic circumstances, Bondora’s portfolios continue to perform ahead of targets.

As always, performance charts by country are broken down by the number of loan issuances over the given period, with Orange representing <50 loans, Blue 51-200, and White >200.

Yearly Performance

July marked a small increase of 0.5% in Estonian return rates. This is in contrast to the declining rates of the other loan originating countries. Their decline is due to the temporary pause on originations in Spain and Finland in an effort to maintain stability during these uncertain times. Nevertheless, the portfolio performances are doing well. Despite this momentary hold, Spanish returns remain 9.4% ahead of their target. Estonia is also holding the fort, performing 7.4% over its target.

Bondora Portfolio Performance Yearly Jul 2020

Quarterly Performance

July carries on the positive over-performing numbers we’ve seen for the last 7 quarters. And even though rates for all quarters in the last two years have dropped, they declined with less than one per cent and are still over their targets. 2019 Q2 is still the quarter with the highest return rate to date (22.2%), consistent with the numbers from the last two months. 2020 Q1 has the second biggest gap, performing 5% over target. The top spot still goes to 2019 Q2, achieving 7.3% above target.

Bondora Portfolio perf quarterly July 2020

Finland

Finland declined with 0.76% from last month’s figures—a stark contrast from last month’s 53.2% decline. As mentioned before, this decline is due to the temporary pause on new loan originations and was to be expected. Of the current C- and E-rated loans, the latter performed the best with 14.07%—just 0.03% under its target.

Bondora Portfolio Performance Finland July 2020

Estonia

Estonian returns showed a slight increase of 0.5%, which is a welcome sight after last month’s 4.6% decline. Estonian loan originations continue to perform very well. HR-rated loans have been issued again and make up 29.2% and 31.8% of the last 2 quarters, respectively. Both quarters are exceeding targets by a landslide. The AA rated loans category remains the outlier as the only category to be under target in 2020 Q1, even if it is with just -0.5%. The rest are all well ahead of their target numbers.

Bondora Portfolio Performance Estonia July 2020

Spain

Spanish loan portfolios are still performing well with all the loan categories still outperforming their targets. This is in spite of the fact that they’ve all taken a slight decline from last month. The D-, E-, and F-rated loan categories continue to be the highest performing categories for Spain. Based on historic data, HR-rated loans tend to have the highest return rate, and biggest out-performance of target figures.

Bondora Portfolio Performance Spain July 2020

Key takeaways:

  • Portfolio performances remain stable despite temporary pause on originations in Spain and Finland
  • Estonian originations are performing well
  • Despite a slight decrease in July, the last 2 years’ returns show over-target performances

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