Figure 1 Performance of Note price and Long-Term Return Target
Update on crowdlending market situation
The development in crowdlending in July has been quite stable. The load originators with whom we are mainly invested are performing rather well under these difficult circumstances. We have therefore noticed that they have started to buy-back loans with high interest rates, while issuing loans with lower interest rates. Demand has picked up without a significant increase in loan origination volumes.
The interest payments received in July were in line with expectation and at the same level as in June.
Current loans were at the end of July 77.8% of the value of the portfolio, an increase of 0.9%-points. At the same time loans more than 60+ days late decreased to 2.1% of the value of the portfolio.
The Polish loan originator that previously had recommenced its late payments has sought protection undere the Polish Covid-19 legislation. While we did receive some payments, we continue to follow our cautious approach and have taken a provision of just under 0.1% of the value of the portfolio.
On property loans, we have received payment of loans where we previously had taken provisions. These have now been reversed equal to 0.03% of the value of the portfolio.
All in all, this gave a return of 0.54% for the month of July 2020.
Since inception, Quantrom P2P Lending has given a return of 30.14% and outperformed the long-term return target by 6.45%-points.
The portfolio at the end of July 2020 consisted of more than 8,100 loans. The weighted average interest rate on the portfolio is 11.08% with an average weighted maturity of 27.7 months.
The main exposure in value is still towards Car Loan which we increased to 59% of the value of the portfolio at the end of the month.
Exposure towards property loans is at 26% of the value of the portfolio. At the end of July, personal loans represented 15%, while business loans were less than 1% of the value of the portfolio.
Figures 2-12 provide more details on the composition of the loan portfolio.
Quantrom Limited, Limerick