Origination data in August was for the most part similar to that of data from July. Total originations were down slightly, but still well above the €10,000,000 threshold. Spanish loans decreased, but still remained at high levels compared to previous months, and Finnish and Estonian originations maintained their trends.

Country Breakdown

Total originations were down from record highs by 5.4% to €14,582,025. Spanish loans, which jumped a massive 286% higher in July, were predictably lower, down to €3,075,350, a drop of 26.1%. Loans out of Estonia actually increased slightly on the month, up by 7.5% to €5,471,065.

Origination by country - Aug 2019

F rated loans out of Spain continued their torrid rise, garnering €2,741,385 of originations, equating to 18.8% of all originations on the month. However, D rated loan out of Spain slid significantly, down to only 1.6% of all originations, a total of €236,895. Estonian C and D rated loans saw their total shares go back above the 10% mark, with C rated loans garnering 10.7% of originations, and D rated loans coming in at 11.3%.

Origination by rating country table - Aug 2019

Loan Amounts

There wasn’t much of a change in average loan amounts across the three origination countries. Spanish and Finnish average loan amounts crept slightly higher, while the average loan in Estonia dropped by 1.2% to €2,108.

Average loan amount - Aug 2019

Loan Duration

The average loan duration in Spain shot up to 57 months from 52 months in July, surpassing Finland as the country with the longest loan durations. Meanwhile, Estonian loans averaged 49 months for the third consecutive month.

Average loan duration - Aug 2019

There were nearly zero short term loans in Spain, leading to the significant rise in its average loan duration. Over 99% of Spanish loans were either 36, 48, or 60 months in duration.

Loan duration - Aug 2019

Average Age

The average age of borrowers was unchanged in Spain (42 years) and Finland (48 years). Estonian borrowers were on average a year younger this month when compared to last month, with an average age of 39 years old.

Average age - Aug 2019

Income

As loan durations increased in Spain, so did the average income of its borrowers. Spanish borrowers averaged €1,845 in monthly income during August, up by 18.6% from July. Estonian borrowers made slightly less than last month (1.6% lower) and Finnish borrowers made slightly more (2.4% higher).

Average net income - Aug 2019

Education

A higher percentage of Spanish borrowers than in July, 41.9%, have obtained a university degree. Estonian borrower skewed slightly toward lower education levels, with 17.0% of borrowers from the country only having a junior high school education. Still, these figures weren’t much different than the previous month to indicate any major changes.

Education - Aug 2019

Employment

Employment levels in In August were in-line with the previous month. 39.0% of borrowers were employed for more than 5 years and 27.6% of borrowers have been employed up to 5 years.

Employment duration - Aug 2019

Home Ownership Status

Estonian and Finnish borrowers had similar home ownership statuses as July. In Spain, borrowers shifted away from home ownership (19.6% of Spanish borrowers) and more toward living with parents (27.0% of Spanish borrowers).

Home ownership status - Aug 2019

Verification Status

There was an uptick in Estonian borrowers being verified, coming in at 46.6%. The same trend occurred for Finnish borrowers, with a 69.8% verification rate compared to 65.4% last month. Once again, almost all Spanish borrowers (99.5%) were verified in August.

Verification - Aug 2019

Conclusion

The past two months have seen great gains for Spanish loans. While the total amount of Spanish loans decreased in August, the average loan amount and average income of borrowers both increased, showing signs of strength out of the country. Meanwhile, originations out of Finland and Estonia have displayed solid trends over the past several months, pointing to consistency in origination data.

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