September 2019 gave a return of 0.67% in Quantrom P2P Lending

In September, interest received was a bit above our long-term expectations. The overall result was a return of 0.67% for the month of September 0.1% - point higher than the long-term return target.

In September we took a provision of 0.04%-point on loans that are not in default but where the payments have been irregular over the last couple of months.

Since inception, Quantrom P2P Lending has given a return of 23.85% and outperformed the long-term return target by 5.09%-points.

Current loans were at the end of September up 4%-point to 70.2% of the value of the portfolio as borrowers have returned home from holiday and paid their instalments. Loans late more than 60 days has increased slightly to 2.2% of the value of the portfolio in September.

 

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

 

Portfolio

The portfolio at the end of September 2019 consisted of almost 8,400 loans. The weighted average interest rate on the portfolio was 11.49% with an average weighted maturity of 30 months.

The main exposure in value is still towards Car Loans with 55% of the value of the portfolio at the end of the month. However, the exposure has fallen more than 10%-points as a result of buy-backs from the loan originator.

Exposure towards property loans is at 22% of the value of the portfolio. At the end of September, personal loans represented 21% and increase of 10%-points, 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

October 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.