€20M issued and 21.5% return earned on mature investments

Today we are speaking about Bondora portfolio returns and introducing the changes, requested by the investment community. Please scroll down for more information.

New Bondora milestones

We are happy to announce that Bondora has reached 2 new milestones:

  • 20 million EUR issued in loans to borrowers
  • 2.6 million EUR paid out in interest to investors

Net annualized return of fully matured portfolio

We have prepared a dataset, which you can use to verify Bondora portfolio return calculations (based on the portfolio cash flow), for the loans which have now reached the end of their life-cycle.

The table includes cash flow for both issued loans and repayments from a fully matured loan portfolio (the loans, which should have been repaid by June 30th 2014). All overdue loans are written off for this calculation.

The net annualized return is shown for the date when the portfolio fully matured and additionally (as a separate view) for a time period until July 22nd. As the payments are still being received, the net annualized return has increased from 20.8% (on 30.06.2014) to 21.5% (on 22.07.2014).

We would like to bring your attention to the key figures, which you can see from this table:

  • 2.4 million EUR was originated in loans with only 338,000 EUR of capital at maximum level (185,000 EUR of capital employed on average). A total of 322,730 EUR of profit was made on this portfolio;
  • The net annualized return to date is 21.5%.

Diverting the focus from self-assessment loans

In recent times the share of loans without income verification has grown. This could lead some of our investors to presume that such kind of loans were being promoted.

Although we do not give advantage to any kind of loans, we have made some changes to the application process, which would help borrowers to understand that whenever opting for self-assessment questionnaire only, they may be losing on a better rate, compared to having income verified.

We would like to remind that although self-assessment financial data is self-reported, all the borrowers are obligatorily checked through credit bureaus and public databases. We also verify their ID, home address, phone and email.

In the footsteps of investor survey

Once again we thank all the investors, who filled in our survey. We took note of all the requested changes and are trying to put them into the development pipeline whenever possible. This week we have introduced the following improvements to the process, which you requested:

  1. The possible mark-up/discount on Resale was changed from +5%/-95% to +40%/-99% to provide more flexibility to the investors;
  2. We are taking a more proactive approach to managing soft collection and recovery stages of our loans. We expect the first results to be seen within a month or sooner;
  3. We have updated TransferWise withdrawal process. From now on, if you need to do a payout through TransferWise, you need to send the listed below documents to transferwise@bondora.com from the email address, registered with your account, after which we will make a transfer:
  • Bank account IBAN nr,
  • Bank’s BIC/SWIFT code,
  • Bank account holder name,
  • Amount in EUR,
  • Currency in which the money should be transferred (e.g. GBP/Pounds),

Photo ID and a cover of a bank statement, which carries your details and the bank account details you want the money to withdraw to (we ask you to do it for the first transfer only, even if you have done it before).