In November, interest received was slightly lower than expectations. The overall result was a return of 0.45% for the month of November 0.04% - point higher than the long-term return target.
Since inception, Quantrom P2P Lending has given a return of 25.06% and outperformed the long-term return target by 5.34%-points.
Current loans were at the end of November increased to 74.0% of the value of the portfolio. Loans late more than 60 days has increased slightly to 2.9% of the value of the portfolio in November.
During the last couple of months, payments from one loan originators have been highly irregular. Previously, we have been informed that this is coursed by technical issues. However, we have not received any communication that these problems have been solved and that payments will be resumed. Following our cautious approach, we have taken a provision this month of almost 0.15%-point.
There are no indications that the underlying loans are in default and the loans are issued with a buy-back guarantee. We expect to receive more information shortly with further details about when payments will be resumed.
Currently the exposure towards this loan originator is less than 1.5% of the portfolio.
We will continue to follow the development closely.
Figure 1 Performance of Note price and Long-Term Return Target
The portfolio at the end of November 2019 consisted of almost 7,400 loans. The weighted average interest rate on the portfolio has fallen to 10.89% with an average weighted maturity of 30 months.
The main exposure in value is still towards Car Loans with 58% 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 November, personal loans represented 16%, 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.
|Figure 4||Figure 5
Quantrom Limited, Limerick