August return of 0.64% in Quantrom P2P Lending

 

 

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

Monthly comments

In August, interest received was in line with 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 0.64% for the month of August 0.08% - point higher than the long-term return target.

In August, we reversed our provision with approximately 0.01%-point. This is coursed by a default property loan, where the underlying assets has been sold. The proceeds from the sale of the property covered all outstanding interest and principal.

Since inception, Quantrom P2P Lending has given a return of 23.03% and outperformed the long-term return target by 4.94%-points.

Loans late more than 60 days has increased slightly to 1.6% of the value of the portfolio in August. Current loans were at the end of August down 4%-point to 66.3% of the value of the portfolio as an effect of the previously mentioned holiday period.

Portfolio

The portfolio at the end of August 2019 consisted of more than 7,800 loans. The weighted average interest rate on the portfolio was 12.11% with an average weighted maturity of 34 months.

The main exposure in value is still towards Car Loans with 65% 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 August, personal loans represented 12%, 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.