Portfolio Performance: Bondora maintains stability

At Bondora, we always aim for stability and security. And our portfolio performance for August can definitely attest to that. The return rate has decreased slightly, but cumulatively speaking, the portfolios for the last 7 quarters all outperform their targets. Things are looking more or less the same as the previous month, and in a volatile year such as this one, that’s reassuring to see.

Bondora maintains stability
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

Estonia has remained exactly the same and is considered stable when compared to last month’s figures, performing 7.4% better than its target. As mentioned last month, the other loan originating countries (Spain and Finland) are experiencing an expected decline due to the temporary pause on their originations. This has been done to maintain stability and has so far proven effective. Despite this pause, Spanish portfolio performance is still 8% ahead of target. Overall, the portfolios are performing 4.6% above target, which is a welcome sight, considering how unpredictable 2020 has been.

Portfolio Performance Yearly Aug 2020

Quarterly Performance

August continues the trend we’ve come to see for the last 7 quarters. They are all ahead of their targets, despite a slight decrease on-the-month. 2019 Q2 is still the top performer, achieving 6.5% above target. This is the kind of stability we aim for.

Port perf quarterly August 2020

Finland

Finland’s C-rated loans for 2020 Q1 declined from 5.46% to 5.34% from last month, which is a very small drop. Although these numbers are declining, it’s still looking promising, considering it’s been nearly 5 months since loans have been originated in Finland. Of the current C- and E-rated loans, the latter performed the best with 13.70%—just 0.40% under its target.

Portfolio Performance Finland Aug 2020

Estonia

The majority of Estonian loan originations remained fairly constant and showed either consistent growth to July’s figures, or slight decreases. F and HR-rated loans, however, were the exception. Both categories showed strong increases with HR-rated loans growing to 38.5%—more than triple its target. The only category to not make target in 2020 Q1 remains the AA-rated loans category, even if it is with just -0.5%. The other categories remain ahead of their target numbers.

Portfolio Performance Estonia Aug 2020

Spain

In spite of the decline across all loan rating categories, Spanish loan portfolios are still outperforming their targets. D-, E-, and F-rated loans are still the best 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. AA loans saw the biggest drop, going from 12.2% in July to 10.5% in August—0.3% ahead of target. We’re eager to see how the numbers will change once Spanish loan originations are restarted.

Portfolio Performance Spain Aug 2020

Key takeaways:

  • HR and F-rated loans in Estonia are performing exceptionally well
  • The last 7 quarters’ actual numbers have shown incredible outperformance of targets
  • Portfolio performances continue to offer stability in spite of temporary pause on Spanish and Finnish originations

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