Portfolio Performance: Another stable month for Bondora

At Bondora, stability and security is our main priority. Despite slight decreases, most of our portfolios are all still outperforming their targets, except for Finland. This month also paints a similar picture as the previous months, indicating a robust system that can withstand the volatile changes we’ve seen in 2020. 

The last few months have mirrored each other—indicating stability and consistency.

As always, country-specific performance charts 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

Estonia remains far ahead of target for 2020 and has increased ever so slightly from last month. Finland declined by 2.4% and is now below target, whereas Spain declined by 4.3% and remains 7% ahead of its target—only down 1% from last month. As mentioned previously, we expected the decline we see with the other loan originating countries (Spain and Finland) because of the temporary pause on their originations. This pause has been done to maintain stability across the platform and has been effective so far. Overall, the portfolios are performing 4.3% above target, a 0.3% decline from last month. We have anticipated declines due to the economic crisis, but being ahead of target for most portfolios is a welcome sight.

Yearly performance table for September

Quarterly Performance

Although there were slight decreases in September, the overall trend mimics previous months. The last seven quarters are still ahead of target, precisely the type of sustainable growth and constancy we strive to achieve. 2019 Q2 is still the top performer being 5.7% ahead of target, with 2020 Q1 in second place—outperforming target by 4.3%.

Finland

The Finnish portfolio has shown declines for a while now—due to the pause on loan originations. It’s now below target for the last two quarters, but still far ahead of target for previous quarters, such as 2019 Q2 D-, E-, F-, and HR-rated loans. 2019 Q2 F-rated loans stand out with 8.1% ahead of target. Of the current 2020 Q1 C- and E-rated loans, E-rated loans performed the best with 13.4%—just 0.7% behind target.

Estonia

September follows a similar trend to August, where most Estonian loan originations remained the same, only with slight decreases. However, in September, B- and C-rated loans increased. Both categories decreased in August but bounced back last month. Even though HR-rated loans decreased to 37.6%, it’s still nearly triple its target of 12.9%. The 2020 Q1 AA-rated loans category is the only category not to exceed target, but only by -0.4%—a small improvement on last month’s -0.5%.

Spain

The Spanish loan portfolio has bounced back, with the C- and E-rated loan categories showing slight increases. This is an excellent contrast to last month’s decreases that affected all the loan categories. All the Spanish loan portfolios are continuing to exceed their targets. E-, F- and HR-rated loans are still the best performing categories, despite small decreases on the month. HR-rated loans tend to have the highest return rate and biggest outperformance of target figures. It’s currently 13.2% ahead of target.

Key takeaways:

  • Almost all Estonian categories are outperforming targets, except for AA-rated loans.
  • Estonian HR and F-rated loans are far exceeding targets.
  • The last 7 quarters’ actual numbers have shown incredible outperformance of targets
  • Finland is below target, but collectively, the portfolios for all countries are over target.
  • Spanish loans continue to exceed targets

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