Strong 2021 Q4 Bolsters Performance across Markets

Market & Pricing

The yearly return rate for 2021 also continues to outperform this month’s target rate by 5.6%. Our quarterly performance is also looking strong, with all four quarters of 2021 performing above their target rates. After substantial increases from the last month, all three markets are now exceeding their target rates for 2021 Q4.

Strong 2021 Q4 bolsters performance across markets.
Strong 2021 Q4 bolsters performance across markets.

Yearly performance

The yearly portfolio performance continues to perform well. The actual overall yearly return rate for 2021 increased by 0.1% again, outperforming the target rate by 5.6%. All three markets (Estonia, Spain, and Finland) increased their performance and exceeded their targets.

As we saw last month, 2020 originations continue to decline slightly, this month by a collective 0.2%. However, despite the decline, it exceeds its target rate by 3.2%. The robust Estonian portfolio outperforms its target by 8.6% and subsequently carries the collective 2020 performance. The Finnish and Spanish portfolios are both below their target rates.

Yearly performance – February 2022
Yearly performance – February 2022 (Click to view all data)

Quarterly performance

Here’s a quick outline on how returns for all four quarters of 2021 performed in February compared to January:

  • 2021 Q1: -0.1%
  • 2021 Q2: -0.1%
  • 2021 Q3: +0.1%
  • 2021 Q4: +1.5%

All quarters from 2020 Q1 to 2021 Q4 exceed their targets. Of 2021, Q1 has the strongest rate with 17.2%, exceeding the target by 7.0%. But, when it comes to the highest return rate over the past several years, 2020 Q3 still holds the crown. It has an actual rate of 27.2% vs. a target rate of 12.5%.

Quarterly performance – February 2022
Quarterly performance – February 2022 (Click to view all data)

Finland

Finnish portfolio performance is gaining impressively. In the last 3 months, Finnish 2021 Q4 has gone from underperforming to outperforming all its targets. In February, B-, C- and D-rated risk categories increased by 2.5%, 2.8%, and 1.2%, respectively. C-rated loans perform the best, exceeding the target by 3.6%. We’ll be eager to see if this growth spurt continues in the coming months.

Finland portfolio performance – February 2022
Finland portfolio performance – February 2022 (Click to view all data)

Estonia

The Estonian portfolio continues to excel. From 2020 Q3 until 2021 Q4, all risk categories remain far above their target rates. In the last 3 months, the 2021 Q4 went from having only 5 out of 8 risk categories above target to over exceeding all 8 target rates in February. The newly relaunched 2021 Q4 HR-rated category still exceeds its target by a landslide (40.1% compared to 5.0%). In 2021 Q4, A-rated loans have the lowest rate above their target (+0.17%).

Estonia portfolio performance – February 2022
Estonia portfolio performance – February 2022 (Click to view all data)

Spain

2021 Q3 and 2021 Q4 continue to outperform their targets. 2021 C-rated loans in Q3 increased by 1.2%—exceeding its target by 9.2%. And in Q4, it exceeded the target by nearly 4.0%.

The HR-rated category in Q3 continues to decline significantly from 7.9% to 3.0%, but it still outperforms its target of -16.6%. This negative target is because we weren’t origination loans in the Spanish market for most of 2021.

Spain portfolio performance – February 2022
Spain portfolio performance – February 2022 (Click to view all data)

Conclusion

2022 continues on strong performances from all 3 markets. From 2020 Q2 until 2021 Q4, our quarterly performances exceed target rates. The yearly return rates for 2021 also outperformed the target rate by 5.6%. The Estonian portfolio performance remains a force to be reckoned with, and the Finnish portfolio is gaining impressive momentum. We’re eager to see how they will perform in the upcoming quarter.