Originations Continue to Increase for the 6th Consecutive Month

Market & Pricing

The originations keep on rolling in 2021! In June, originations totaled €11,036,285—a 5.9% growth rate when compared to May. This is the sixth consecutive month that Bondora originations continue to increase. This consistent growth is in line with our vision for the future, on the road to 1 billion.

Originations continue to increase for the 6th consecutive month.
Originations continue to increase for the 6th consecutive month.

Country breakdown

The share of originations by country didn’t change much over the month. Estonian originations accounted for 69.4% of originations, while Finnish loans had a 30.6% share. The interest rates for both countries were also similar, although slightly lower on the month; Estonia came in at 25.7%, and Finnish loans at 19.1%.

Origination by country – June 2021
Origination by country – June 2021

Estonian originations added new rating categories in June. For the first time in over a year, AA and A-rated originations were made on the month, which came to €537,701 and €805,481 respectively. These additions reduced the percent share of Estonian originations for the remaining rating categories. Another thing to note is that C-rated originations almost equaled B-rated originations, both with a 17.2% share of all originations this month.

Finnish originations continued with D-rated loans, which equaled €3,152,306 this month and an almost identical 19.1% interest rate compared to May.

Origination Share by rating/country – June 2021
Origination Share by rating/country – June 2021

Loan amounts

The average loan amount for Finnish originations dropped for the third month in a row—this time by 8.4% to €2,438. After increasing in May, this month, Estonian originations declined slightly with 2.6% to an average amount of €2,744.

Average loan amount – June 2021
Average loan amount – June 2021

Loan duration

After dropping to a 55-month loan duration in May, June’s figures show Estonian originations coming in at 56 months. This is the same average that these loans have held for many months prior. Finnish originations were slightly lower in duration, averaging 55 months compared to 56 months in May.

Loan duration – June 2021
Loan duration – June 2021

The duration of Estonian originations was distributed almost identical to May. 60-month loans had a 78.5% share of originations compared to 78.0% previously. The next highest loan duration for Estonia was 24-months, which totaled 5.5% of originations in the country, against 4.9% in May.

As for Finnish originations, 60-month durations equaled 73.9% of the country’s originations, down 7.3% from last month. On the flip side, originations skewed toward shorter duration loans, such as 6-month originations, which totaled 7.3% of Finnish originations in June compared to 5.2% in May.

Number of loans per duration – June 2021
Number of loans per duration – June 2021

Average age

Once again, the average age of Estonian borrowers remained at 37 years old, with Finnish borrowers averaging 45-years of age for the third consecutive month.

Average age – June 2021
Average age – June 2021

Income

In June, the average income of Estonian borrowers increased tremendously by 55.1% to €2,268. This is a good sign that incomes in Estonia are recovering and growing after a slow start to 2021. Meanwhile, Finnish borrowers saw their income decline by 11.5% to an average of €3,038.

Average net income – June 2021
Average net income – June 2021

Education

There was a decrease in Finnish borrowers with a high school education, which dropped from 125 borrowers last month to 121 borrowers this month and now accounting for only 9.4% of all Finnish originations. Finnish borrowers remain mostly at vocational school level, with 52.5% of the country’s borrowers attaining this education level. Meanwhile, Estonian borrowers saw a slight increase in its high school educated borrowers, up to a 41.7% share of borrowers in the country. This was followed by vocational school, which, once again, came in at 23.0% of Estonian borrowers.

Education – June 2021
Education – June 2021

Employment

June’s borrower employment levels remained almost identical to May’s. There was a slight increase in the number of borrowers employed for more than 5 years, accounting for 33.0% of all borrowers this month compared to 34.0% last month. A similar, 0.5% decline was seen in borrowers employed up to 5 years. Retirees are still least likely to be borrowers, coming in at 6.9% of all Bondora borrowers in June.

Employment – June 2021
Employment – June 2021

Homeownership status

Homeownership for Estonian borrowers was less prevalent this month, accounting for 40.3% of the nations’ borrowers, compared to 44.1% of its borrowers in May. The same trend occurred in Finland, where borrowers were still most likely to be homeowners, but at a lesser rate of 43.9%. This is a 2.0% decline from May.

Homeownership status – June 2021
Homeownership status – June 2021

Verification status

Bondora achieved a 100.0% verification rate for Finnish borrowers, something it had been close to achieving last month. On the flip side, the Estonian verification rate went in reverse, down 1.0% to a verification rate of 95.7%.

Verification status – June 2021
Verification status – June 2021

Originations still rising

After passing €10 million in May, Bondora outdid itself with €11,036,285 in June, making it another great month for Bondora originations. This growth was led, in part, by the new originations in Estonian AA and A-rated categories, which hadn’t seen loans in over a year. With these new rating categories intact, all signs point to even more growth for Bondora originations in the months to come.

Learn more about Bondora investment products here.