As we end 2021, our yearly return rates for the year outperform the target rate by 5.4%. Every quarter of the 2021 quarterly performance statistics performed well above target rates, except for Q4, which was 0.5% below target. However, all four quarters from 2020 continue to outperform their target rates.
Yearly performance
Even though the 2021 yearly portfolio performance dipped a bit from November, our overall actual rate still outperformed the target rate by 5.4% at the end of the year. All four countries, except Finland, remain above target.
2020 originations also downturned, declining by 0.2%. In contrast to the 2021 returns, Finland is now the only country that increased its returns, performing at 6.8%. Estonia and Spain decreased by 0.1% and 0.6%, respectively.
Quarterly performance
Here’s a quick outline on how returns for all four quarters of 2021 performed in December:
- 2021 Q1: -0.2%
- 2021 Q2: +0.0%
- 2021 Q3: +0.4%
- 2021 Q4: 8.9%
Now that 2021 has ended, we can give you a complete overview of the entire year. Every quarter from 2021 remains very competitive compared to their target rates, with 2021 Q4 being the only quarter to come in below target (-0.5% less than the target).
2020 retains its ‘perfect score,’ with all quarters outperforming their targets. 2020 Q3 still has the highest return rate over the past several years, with an actual rate of 27.4% vs. a target rate of 12.5%.
Finland
Finnish performance mimics our overall yearly statistics, with the first three quarters of 2021 performing above target and Q4 coming in lower. This could be due to the relaunching of more risk categories (B and C) in Q4 in Finland. Finnish returns for 2021 Q3 jumped 0.5% to 8.1%.
Estonia
All seven risk-rating categories from 2020 Q3 to 2021 Q3 remained above target in Estonia. In 2021 Q4, we relaunched the HR-risk category. In this quarter, 5 of the 8 categories are above target, with 2021 Q4 HR performing the highest above target (31.1% vs. 5.0%)
Spain
Spanish originations for 2021 Q4 is the only country to have outperformed its target, coming in at 11.3% vs. 9.2%. 2021 Q3 also continues to perform well-above target. C-rated and HR-rated loans perform at nearly the same return rate, with 15.8%, and 15.9%, respectively. HR-rated loans weren’t issued in Q4. Consistent with the last two months, 2020 Q1 originations remain far below the target.
Conclusion
The portfolio performance for 2021 Q4 ended on a lower note than the rest of 2021. But, despite this slow turn at the end of the year, the 2021 yearly return rates continue to perform well above the target rate by 5.4%. Now we can only wait with anticipation to see what 2022 will bring.