Provision Fund and Loan Book Update: Q3 FY21
Explore our quarterly report in relation to the Plenti Lending Platform (PLP) loan book and the performance of the provision fund.
We are pleased to provide a quarterly data report in relation to the Plenti Lending Platform (PLP) loan book. The PLP is a registered managed investment scheme with over 20,000 members (who are predominantly retail investors) and is one of the diverse funding platforms utilised by Plenti to fund loans.
The data in this post provides members who invest via the PLP with transparency as to the credit characteristics of the PLP loan book and information in relation to the Provision Fund. Shareholders in Plenti Group Limited should be aware that the data provided only relates to the PLP and does not provide a complete picture of Plenti’s total loan portfolio, including its loans funded via warehouse structures and the Plenti Wholesale Lending Platform.
Shareholders should refer to the quarterly trading update released to the ASX on 12 January 2021 for data in relation to the performance of the total Plenti loan portfolio.
Provision Fund performance and coverage ratio
We are pleased that despite the significant economic disruption caused by COVID-19, the Provision Fund has continued to compensate investors for all borrower late payments and defaults.
The Provision Fund buffer also increased to $20.4 million as at 31 December 2020, representing a Provision Fund coverage ratio of ~177% of expected credit losses. This coverage ratio has increased materially from the 157% reported for the end of September 2021.
Note that the Provision Fund is not an insurance product nor a guarantee. You should read the PDS for more information about the Provision Fund.
Provision Fund and expected loss data as at 31 December 2020
| Cash in Provision Fund1 | $13,599,762 |
| Expected Provision Fund inflows2 | $6,773,050 |
| Provision Fund buffer3 | $20,372,812 |
| Estimated Provision Fund coverage ratio4 | 177% |
| Claims made on Provision Fund to date | 100% of late payments and defaults |
| Claims paid by Provision Fund to date | 100% of total claim value |
PLP lending statistics as at 31 December 2020
| Total amount lent5 | $793,227,217 |
| Total principal repaid | $493,922,434 |
| PLP loan book | $299,304,783 |
| Number of loans outstanding | 26,260 |
| Average outstanding loan amount | $11,398 |
| Weighted average remaining term | 37 months |
PLP loan and borrower characteristics
Distribution is as at 31 December 2020 and based on principal amount outstanding.
