Quantrom P2P Lending reach 7.26% return in 2019 – 0.44% in December

 

 

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

Monthly comments

In December, interest received was in line with expectations. The overall result was a return of 0.44% for the month of December 0.03% - point higher than the long-term return target.

Since inception, Quantrom P2P Lending has given a return of 25.61% and outperformed the long-term return target by 5.40%-points.

Current loans were at the end of December 69.6% of the value of the portfolio, which is a decrease of 4%-points. The decrease is a function of the seasonality around Christmas where many borrowers are late with their payments. Loans late more than 60 days has increased slightly to 3.8% of the value of the portfolio in December.

The increase in the loans more than 60+ Days Late is mainly coursed by the loan originator that stopped transferring payments to Mintos. Since November we have been informed that there is an agreement in place for transferring of funds to Mintos, but until we recognise the actual payments have been resumed on our loans, we will continue our cautious approach. We have therefore taken an additional provision of 0.18% in December.

We will continue to follow the development closely.

Portfolio

The portfolio at the end of December 2019 consisted of almost 7,400 loans. The weighted average interest rate on the portfolio has fallen to 10.82% with an average weighted maturity of 30 months.

The main exposure in value is still towards Car Loans with 56% of the value of the portfolio at the end of the month.

Exposure towards property loans is at 25% of the value of the portfolio. At the end of December, 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.

Figure 2

Figure 3

Figure 4

Figure 5

Figure 6

Figure 7

Figure 8

Figure 9

Figure 10

Figure 11

Figure 12

Figure 13

Quantrom Limited, Limerick

January 2020

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.