Welcome to another data blog post from Bondora, below we take a look in to the actual and targeted net returns from investments by country, year and quarter. It’s important to note that the most recent quarter will nearly always show a higher return as the loans have only recently been issued and at this point the interest element accounts for a high percentage of the total payment, this is why we discuss data that is specifically over 12 months old below.

We have marked the figures with three different colours, firstly light red to represent less than 50 loans issued, light blue for 51 – 200 and white for over 201. This is a great way to spot anomalies, such as high volatility in low risk ratings.

Key takeaways

  • The lowest annual actual net return across all countries and risk ratings in Bondora’s history was 9.35% in 2014.
  • In Estonia, the best performing quarter was seen in Q1 of 2016 at 19.07%, 4.28% above the target of 14.79%.
  • Only a small percentage of Finnish loans issued total over 200 PCS, most recently in Q3 of 2017 this was seen in F & HR ratings.

Actual and targeted Bondora net returns across the portfolio per quarter

  • Overall, the average actual net return across all quarters comes in at 13.99%, slightly below the target average of 14.76%.
  • The best performing quarter in 2015 was Q4 at 13.51%, in 2016 this was Q1 at 16.7%.

portfolio-performance-returns-quarter-december-2017

Actual and targeted Bondora net returns across previous years

Across all countries and risk ratings, the lowest actual annual net return in Bondora’s history is 9.35% which was in 2014. When looking at the table below, you can see that this figure is influenced heavily by the expansion in to new locales such as Slovakia and the performance of Spanish loans. In 2014, there was no risk scoring or pricing set by Bondora, so investors were actually pricing the loans themselves via auctions.

portfolio-performance-data-returns-9-years

Today, approximately 99% of investments are made automatically and hassle-free via our Portfolio Manager and Portfolio Pro features, both of which are completely free to use for all investors.

Estonia

  • In Q2 and Q3 of 2017, less than 50 F rated loans were issued per quarter.
  • The best performing quarter was seen in Q1 of 2016 at 19.07%, 4.28% above the target of 14.79%.
  • When looking at data over 12 months old and with over 200 loans issued, the highest performing rating was F rated loans in Q2 of 2016 with a return of 25.1%.

portfolio-performance-data_EE-december-2017

Finland

  • Compared to Q2, Q3 of 2017 saw the number of loans issued with B & C ratings increase to over 50 PCS.
  • Only a small percentage of Finnish loans issued total over 200 PCS, most recently in Q3 of 2017 this was seen in F & HR ratings.
  • The best performing quarter (over 12 months old) was Q1 of 2016 at 15.16%, 2.54% above its target of 12.62%.
  • The actual return figure for Q4 of 2016 B rated loans ia -36.87%, however the data is significantly skewed due to less than 5 loans being issued.

portfolio-performance-data_FI-december-2017

Spain

  • Across all but one quarter since Q1 of 2015, we have seen over 200 loans issued each quarter in HR ratings. The highest number being in Q3 of 2017 at 1,721 PCS and this has not decreased below 400 PCS since Q4 of 2015.
  • The best performing quarter in Spain (over 12 months old) was seen in Q1 of 2016 at 24.59%, 10.21% above the target of 14.38%.
  • Volatility is expected in credit ratings with a higher expected default rate, which is why we always encourage a diversified portfolio of investments.

portfolio-performance-data_ES-december-2017

Remember, to maximize your net return you should view investing with Bondora as something long term.