Originations Top €14M for 2nd Month, and more!

Market & Pricing

February followed in January’s footsteps with a similar figure for loan originations. €14,130,610’s worth of loans were originated in February. Meanwhile, investors added a total of €13,938,296 to their Bondora accounts. This is a very slight decline of 1.1% from January, but it’s still a solid number compared to the last couple of months. Read more:

Originations top €14M for 2nd month, and more!
Originations top €14M for 2nd month, and more!

Product funding figures:

  • Go & Grow                       – 1.1%
  • Portfolio Manager           – 3.1%
  • Portfolio Pro                   + 2.7%
  • API                                   + 9.6%
Investment by product – February 2022
Investment by product – February 2022

Investment by product

Again, Go & Grow confirmed its spot as the most popular investment method with a 92.9% bulk share of investments—nearly the same as last month. This translates to €12,941,210, a 1.1% decrease from January. Portfolio Manager amassed €558,074 in investments, which is a decline of 3.1%—but at the same time, it remains the 2nd most popular investment product.

On the other hand, Portfolio Pro and the API increased their investment funding share. The former with 2.7% and the latter with 9.6%. The percentage share of each product remains the same, indicating a constant trend amongst investors.

February investment by product
February investment by product

Loan originations

February followed in January’s footsteps with a similar figure for loan originations. € 14,130,610’s worth of loans were originated in February—which is a very minimal 1.1% drop. And Estonian and Spanish loans showed positive increases. Here’s a breakdown of all the origination stats:

Country breakdown

For the first time in months, Finnish loans didn’t have a massive increase and instead declined by 15.6%. Their total share dropped from 70.3% to 59.9%. In contrast, Estonian and Spanish originations increased by 30.5% and 90.7%, respectively.

Despite the 15.6% decrease, Finnish still make up the largest share of originations by far with €8,475,554. Estonia is coming in 2nd place, making up impressive ground with a 30.5% growth rate, with €5,280,465 originating in February. Spanish loans might make up the smallest amount with €374,592 being originated, but they have the most impressive growth rate by far—90.7%!

In February, average interest rates increased by 0.5 after decreasing by 0.8 in January. This is mainly due to the Estonian average interest rate that increased from 21.71% to 22.11%. Once again, the changing Estonian interest rate had the biggest influence on the average interest rate across all three markets. Once again, the average Spanish interest rate remains practically unchanged (+0.02%), and the average Finnish rate increased by 0.18%.

Origination by country – February 2022
Origination by country – February 2022

Spain is still only originating C-rated loans, now making up 2.7% of all loans—almost doubled from January’s figures. On the other hand, C-rated loans in Finland decreased their share by 10.3%. In Estonia, B- and C-rated loans increased their shares by 2.1% and 4.3%, respectively. All the Estonian loan categories’ shares in the total loan portfolio increased.

Origination by rating/country – February 2022
Origination by rating/country – February 2022

Loan amounts

The average loan amount for all three markets decreased; Estonia by 0.1%, Spain by 6.6%, and Finland by 6.9%. This is the 5th month in a row that Estonian loan amounts have declined. Spain has the highest average loan amount with €2,583, followed closely by Finland with €2,559. But it’s fair to say that all three countries’ average is reasonably close to one another.

 Average loan amount – February 2022
Average loan amount – February 2022

Loan duration

All in all, these three markets have very similar loan duration lengths. Estonia was the only country to mark a change in February, increasing by one month. Spain and Finland hold the same position.

Loan duration – February 2022
Loan duration – February 2022

As has become customary, 60-month loans are the most popular across all markets by far. This duration consistently has the overwhelming majority in each country. In Estonia, 1,719 loans were issued in this category, in Spain 113, and Finland 2,517. 24-month loan durations are the 2nd most popular in Estonia and Finland.

Number of loans per loan duration – February 2022
Number of loans per loan duration – February 2022 (Click to enlarge)

Average age

Finland continues to have the same average age as we’ve seen over the last few months. Spanish borrowers tend to be 39 years old—a 3-year increase from January. In Estonia, the average borrower age dropped by 1 year to 37 years old. Finnish borrowers remain the oldest.

Average age – February 2022
Average age – February 2022

Income

The average net income of borrowers decreased across all markets, with Estonian borrowers having the most significant drop, falling by 24.3%. In Spain, their net income decreased by 12.8% and in Finland by a less dramatic 4.8%.

Average net income – February 2022
Average net income – February 2022

Education

In February, borrowers’ education status remains similar to January. Most borrowers have High school (41.4%) and Vocational school qualifications (23.5%). The majority of Finnish-based borrowers have Vocational school qualifications (53.3%), followed by University degrees (23.5%). And in Spain, high school education makes up most of the borrowers (48.3%), followed by those with a university degree (42.1%).

Education – February 2022
Education – February 2022

Employment

The employment statistics remain very consistent with previous months. The majority of borrowers (2,010) are employed for more than 5 years. Those employed for up to 5 years accounted for the 2nd largest share of all borrowers (1,607). Retirees are still the least populated segment, accounting for just 401 borrowers.

Employment – February 2022
Employment – February 2022

Homeownership status

In Estonia, most borrowers (39.7%) own a home, as opposed to 24.2% who rent. In Spain, we see almost the opposite as the majority (42.1) are tenants and only 6.2% own property. The second-biggest category in Spain is ‘living with parents’ (24.1%). In Finland, borrowers who classify as homeowners make up 45.1%. The 2nd largest category is tenants, which makes up 38.4%.

Homeownership status – February 2022
Homeownership status – February 2022

Verification status

Spain maintained its 100% verification rate for the 6th month in a row and Finland for its 2nd month. Estonia’s verification rate decreased by 0.1% to 99.5%. This brings the total verification rate to 99.8%—up 0.1% from January.

Verification status – February 2022
Verification status – February 2022

Originations and investments continue on a solid path

February’s origination and investments continue us on the road of growth for 2022. Estonian and Spanish origination growth is particularly exciting. With just over €14M being originated and nearly the same amount invested, we are confident in the performance of the Bondora portfolio.