Plenti books record A$613 million in loan originations in second quarter
Key Facts
Australian fintech Plenti reported record loan originations of A$613 million in the second quarter of fiscal 2027, which ended on September 30, 2026. Originations rose 29% from the same period and 14% from the previous quarter, the company said in a disclosure. Plenti exceeded A$600 million in new loans in a single quarter for the first time. The company said it had therefore achieved its fiscal 2027 exit-rate target before the end of the year. The loan book stood at A$3.5 billion at quarter-end, up 24% year on year and 7% quarter on quarter. Revenue was A$89.7 million, up 18% from the same period.
The record came as three major segments posted unprecedented originations. Consumer auto finance reached A$180 million, while renewable energy loans totaled A$117 million and personal loans A$186 million. Renewable energy originations grew fastest among these segments, rising 105% from the same period. Plenti attributed the expansion to support from federal government incentive programs and state government programs. In Western Australia, the state government’s home battery program processed more than 11,300 rebate claims during the quarter. The figures highlight the contribution of several sources to quarterly growth, rather than record originations relying on a single segment.
Lending growth was accompanied by an increase in the loan book, while credit quality indicators remained close to levels in the same period. Annualized net credit losses were 96 basis points in the quarter, compared with 94 basis points a year earlier. Loans more than 90 days past due stood at 42 basis points of the portfolio at the end of September, down from 46 basis points at the end of the previous quarter. The company said most of its loans carry fixed rates and are hedged at origination. It added that higher funding costs during the quarter did not affect the existing loan book. These indicators came as the portfolio expanded 24% year on year.
The average net interest margin on new loan originations remained at about 5.3%, in line with the first quarter of fiscal 2027. But the market component of funding costs rose by about 40 basis points in September. Plenti said it raised customer rates during the month and made further adjustments in October. It said the fixed-rate structure of most existing loans and hedging at origination limited the impact of higher funding costs on that portfolio. The company said, however, that the higher costs need to be passed through to new loans. This places originations growth alongside funding pressure that the company has begun to address through pricing.
Chief Executive Adam Bennett framed the surpassing of A$600 million in quarterly originations as part of the company’s path to growing its portfolio. “Exceeding A$600 million in quarterly loan originations for the first time is an important milestone for Plenti,” he said in a company disclosure. “This continues our path toward a A$5 billion portfolio.” The results come as preliminary figures for Australia’s services activity index showed a fall to 47.8 points in October from 51.9 in September. S&P Global said companies in the services and manufacturing sectors cited weak market confidence, higher borrowing costs and inflationary pressures as factors weighing on demand. The Reserve Bank of Australia raised its cash rate target by 25 basis points to 4.60% on September 29, citing persistently high inflation.
The Reserve Bank of Australia is due to announce its next interest rate update on November 3, 2026. That will come before Plenti reports its first-half fiscal 2027 results on November 25, 2026. The company said its first-half results would be released on Wednesday on that date. The upcoming financial results will provide another checkpoint on revenue and portfolio trends after a record quarter for originations. They will also follow Australia’s monetary policy update scheduled for November.