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ASX-listed neo-lender Wisr have released their Quarterly Activities Report for the quarter ending 31 March 2023 (Q3FY23).
After 2022 saw Net Interest Margin (NIM) compression, Wisr has returned to NIM expansion. From a low of 3.5% NIM through the rapid rate rise cycle, Wisr is now delivering a NIM run rate of 5% on new business written and expects a return to a NIM of over 6% in the medium-term.
Q3FY23 saw loan originations of $140 million, with $1.6 billion in total loan originations to date. In addition, positive operating cash flow of $3.9 million and Quarterly Revenue of $24.1 million were achieved with a 55% increase on Q3FY22 ($15.5 million).
Wisr’s prime loan book now sits at $968 million, an increase of 46% on pcp (Q3FY22 $663 million).
During this period, Wisr also saw the successful completion of $200 million inaugural asset-backed securities deal for the secured vehicle loan product, reducing the cost of funds and increasing funding capacity.
At the end of the quarter Wisr had a cash balance of $21.8 million at 31 March 2023, consisting of $18.3 million in unrestricted cash and $3.5 million in loans available for sale.
April 2023 also saw a 30% headcount reduction and significant additional cost reduction initiatives, with a focus on delivering near-term profitability.
Commenting on the results, Wisr CEO Anthony Nantes said, “This quarter, we delivered positive operating cash flow of $3.9 million, protected our margins by lifting yield and returned to NIM expansion after 12 months of NIM compression. We’ve grown our loan book by 46% on pcp and increased revenue by 55% on pcp, all while tempering our loan origination growth reflecting macroeconomic conditions.
“With a laser focus on delivering near-term profitability, we made the prudent and proactive decision to make further material reductions in operating costs in April, including a 30% reduction in headcount. This cost reduction, combined with
strong NIM expansion, and a clear pathway to deliver circa 6% NIM in the medium term, the Company is strongly positioned to deliver sustained, profitable growth as it continues to scale.
“We have the resources and capability to safeguard the business from a sustained economic downturn whilst taking advantage of the significant opportunity to continue to build a company of meaningful size and scale with sustainable revenue from a prime $968M loan book,” finished Nantes.
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