0.53% was the outcome of October for Quantrom P2P Lending

In October, interest received was in line with expectations, but quite lower than in September. The overall result was a return of 0.53% for the month of October 0,12% - point higher than the long-term return target.

From 1. October the long-term return target has been lowered due to lower level of interest rate offered in the peer-to-peer market. The lower interest rates received was, as previously mentioned, already noticeable in October.

In October, we took a provision of less than 0.005%.

Since inception, Quantrom P2P Lending has given a return of 24.50% and outperformed the long-term return target by 5.27%-points.

Current loans were at the end of October slightly down to 69.2% of the value of the portfolio. Loans late more than 60 days has increased slightly to 2.7% of the value of the portfolio in October.

Figure 1 Performance of Note price and Long-Term Return Target

 

Portfolio

The portfolio at the end of October 2019 consisted of almost 7,800 loans. The weighted average interest rate on the portfolio has fallen to 11.24% with an average weighted maturity of 28 months.

The main exposure in value is still towards Car Loans with 57% of the value of the portfolio at the end of the month.

Exposure towards property loans is at 24% of the value of the portfolio. At the end of October, personal loans represented 17%, while business loans were at 2% of the value of the portfolio.

Figures 2-12 provide more details on the composition of the loan portfolio.

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Quantrom Limited, Limerick

November 2019

About the Author

Gustav Jensen

Gustav is the managing director of Quantrom Limited and is living in near Brussels.

Economist from University of Copenhagen mainly working in finance and banking.