Another month with a stable return of 0.63%

 

 

In July, interest received was a bit higher than our expectation given that we have entered into the holiday period, where borrowers tend to be slightly behind on their payments. The overall result was a return of 0.63% for the month of July 0.07% - point higher than the long-term return target.

In July we have taken a provision of 0.005% on loans in default.

Since inception, Quantrom P2P Lending has given a return of 22.24% and outperformed the long-term return target by 4.82%-points.

Loans late more than 60 days has fallen below 1.5% of the value of the portfolio in July. Current loans were at the end of July down 3%-point to 70.6% of the value of the portfolio as an effect of the previously mentioned holiday period. Current loans and loans less than 30 days late are more than 94% of the value of the portfolio.

 

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

 

Portfolio

The portfolio at the end of July 2019 consisted of more than 7,200 loans. The weighted average interest rate on the portfolio was 12.32% with an average weighted maturity of 35 months.

The main exposure in value is still towards Car Loans with 66% of the value of the portfolio at the end of the month.

Exposure towards property loans is at 21% of the value of the portfolio. At the end of July, personal loans represented 11%, 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

August 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.