FIRST LOOK: 2021 Q1 Portfolio Performance

Market & Pricing

The first figures for overall 2021 origination returns came in well above target at a return rate of 15.1% against a 10.2% target rate in April. This is an excellent start to a year that we’re gearing up for intense growth.

Get the first look at the 2021 Q1 Portfolio Performance.
Get the first look at the 2021 Q1 Portfolio Performance.

The 2020 yearly return rate for originations continues to remain steady in 2021. After increasing to 17.5% in March, it reverted to 17.4%. This has been the most common percentage for the 2020 performance during the last few months.

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

As we exited Q1 of 2021, we can now get our first look at the year’s data. Estonian originations started well, exceeding the target by 5.8%. Spanish originations entered at 0% due to the ongoing freeze on Spanish originations. And Finnish originations came in just below target (6.7% against a 6.8% target rate). We expect to see more growth in Finnish originations next month. Another highlight was Estonian 2020 originations, which increased slightly to 21.1%.

Yearly performance – April 2021
Yearly performance – April 2021

Quarterly performance

The first reported quarterly return rate for 2021 Q1 was strong, coming in at 15.1%, which is 4.9% above target. The previous quarter—2020 Q4—also increased slightly to 21%, which is 9.9% above target. Returns for all of 2020 continue to be above their target rates while also maintaining double-digit return rates.

Quarterly performance – April 2021
Quarterly performance – April 2021

Finland

No C-rated Finnish loans were originated in 2021 Q1, while more D-rate loans were originated over the quarter, ending the month at a 6.7% return rate. Both C- and D-rated originations from 2020 Q4 came in higher this month, both ending April at 7.3%.

Finland portfolio performance – April 2021
Finland portfolio performance – April 2021

Estonia

Origination numbers across Estonian rating categories were similar in 2021 Q1 compared to 2020 Q4. All categories far exceeded their targets, with E-rated loans having the highest return rate of 27.5%. Meanwhile, rates also increased across the board for 2020 Q4 originations; E-rated loans are, again, the highest in the quarter, with 31.3%.

Estonia portfolio performance – April 2021
Estonia portfolio performance – April 2021

Spain

There were no Spanish originations generated in 2021 Q1. As for the last quarter when we originated loans in Spain, which was 2020 Q1, all origination categories saw slight declines in returns. Still, both F-rated (19.2%) and HR-rated originations (24.3%) remained above target.

Spain portfolio performance – April 2021
Spain portfolio performance – April 2021

Key takeaways

  • The first reported return numbers for 2021 Q1 are off to a good start
  • 2020 originations continue to maintain their return rates, with a 17.4% overall rate of return for the year
  • Quarterly numbers for 2021 Q1 were excellent, coming in at 15.1%
  • Estonian originations for 2021 were higher than their target rates

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