Figure 1 Performance of Note price and Long-Term Return Target
Interest payments in October was slightly higher than expected and borrowers are catching up with their late payments.
Current loans represented 76.9% of the value of the portfolio at the end of October basically unchanged from September. At the same time loans 60+ days late decreased slightly to 3.50% of the value of the portfolio.
We continue to take provision on the Polish loan originator under COVID-19 protection equal to approximately 0.1% in October. Furthermore, COVID-19 has unexpectedly delayed some transactions related to some of our property loans. COVID-19 do not change our cautious approach and we have therefore taken a provision of 0.2% this month on the previously mentioned loans. However, we expect that the returns on property loans will normalise during the rest of the year.
All in all, this gave a return of 0.32% for the month of October 2020.
Since inception, Quantrom P2P Lending has given a return of 31.91% and outperformed the long-term return target by 6.70%-points.
The portfolio at the end of October 2020 consisted of more than 8,350 loans. The weighted average interest rate on the portfolio is 11.29% with an average weighted maturity of 28.9 months.
The main exposure in value is still towards car loans which represent 61% 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 14%, while business loans were 1% of the value of the portfolio.
Figures 2-12 provide more details on the composition of the loan portfolio.
Quantrom Limited, Limerick