ASX-listed consumer lender, Wisr announced its financial results for the year ended 30 June 2024.
The report makes it clear that while growth – and maybe profits – seem just over the horizon, Wisr's EBITDA remains firmly red, disclosing as loss of $2.3 million for FY24 (FY23: $0.51m)
Other key numbers from Wisr in relation to FY24:
• Portfolio yield 10.90 per cent (FY23: 10.17 per cent), while front book (June 24 run rate) yield was 12.62 per cent (June 23: 13.11 per cent)
• Portfolio net interest margin was 5.23 per cent (FY23: 5.47 per cent), while front book NIM (June 24 run rate) was 6.14 per cent (June 23: 6.06 per cent)
• Operating revenue was $93.8m, an increase of 2 per cent over FY23 ($91.9m) due to "moderated loan origination" for the majority of FY24
• Operating expenses also decreased in FY24 to $26.5m, down from $32.8m in FY23, a decline of 19 per cent. Wisr also reduced its cost-to-income ratio to 28 per cent (FY23: 36 per cent)
Total new loan originations were $210 million, a sharp drop from the previous year (FY23: $495m), following what the company stated was "a deliberate moderation of loan origination volume for the majority of FY24".
The reduction in total loan book to $770m, down from $931m in FY23, was also driven by "moderated loan volume settings", the company stated. The smaller loan book created a rise in 90+ day arrears to 1.58 per cent for FY24, up from 1.25 per cent at June 2023.
On a more positive note, the company strengthened its balance sheet through a $50 million corporate facility from global financial services group Nomura
Wisr enjoyed a 31 per cent increase in unrestricted cash to $28.4m (Jun-23: $21.7m), strengthened by the initial $35m draw of the $50m corporate facility. Part of these proceeds were applied to repay the company’s existing $25m corporate facility, with a further $15m available to fund the company’s ongoing growth plans
Two warehouses are in place to support originations with a total commitment value of $650m and an undrawn capacity of $220m
Wisr strengthened its balance sheet in May 2024 through an enlarged $50m corporate facility from global financial services group Nomura. A pivot back to growth delivered Q4 run rate loan originations of circa $67.5m (pro forma), a 30% increase on the prior quarter. With a bolstered balance sheet and improvements to customer and partner experience, Wisr is well-placed to achieve its goals in FY25 and beyond.
The company stated its intention is to grow loan originations in FY25 by 75 per cent over FY24.
Andrew Goodwin, Wisr’s chief executive officer, said, "Our intention in FY25 is to continue focusing on loan volume growth at attractive unit economics and to scale the business towards profitability and a self-sustaining capital position.
"The combination of a bolstered balance sheet, our proprietary technology, prime loan book, and robust risk and operational frameworks means that Wisr is well positioned to achieve these goals," concluded Goodwin said.
Wisr's annual general meeting will be held on 21 November