Provision Fund and Loan Book Update: December 2020

Human, Person, Face

We are pleased to provide a quarterly data report in relation to the Plenti Lending Platform (PLP) loan book. The PLP is a registered managed investment scheme with over 20,000 members (who are predominantly retail investors) and is one of the diverse funding platforms utilised by Plenti to fund loans.

Note the data in this post provides members who invest via the PLP with transparency as to the credit characteristics of the PLP loan book and information in relation to the Provision Fund. Shareholders in Plenti Group Limited should be aware that the data provided only relates to the PLP and does not provide a complete picture of Plenti’s total loan portfolio, including its loans funded via warehouse structures and the Plenti Wholesale Lending Platform.

Shareholders should refer to the quarterly trading update released to the ASX on 12 January 2021 for data in relation to the performance of the total Plenti loan portfolio.

Provision Fund performance and coverage ratio

We are pleased that despite the significant economic disruption caused by COVID-19, the Provision Fund has continued to compensate investors for all borrower late payments and defaults .

The Provision Fund buffer also increased to $20.4 million at 31 December 2020, representing a Provision Fund coverage ratio of ~177% of expected credit losses. This coverage ratio has increase materially from the 157% reported for the end of September 2021.

Note that the Provision Fund is not an insurance product nor a guarantee. You should read the PDS for more information about the Provision Fund.

Provision Fund and expected loss data as at 31 December 2020
Cash in Provision Fund1$13,599,762
Expected Provision Fund inflows2$6,773,050
Provision Fund buffer3$20,372,812
Estimated Provision Fund coverage ratio4177%
Claims made on Provision Fund to date100% of late payments and defaults
Claims paid by Provision Fund to date100% of total claim value

1 Funds currently held as cash at bank

2 Expected Provision Fund inflows represents contracted PLP borrower contributions to the Provision Fund due over the lifetime of outstanding PLP loans, adjusted to reflect expected early repayments and bad debt

3 Provision Fund buffer is the sum of money in the Provision Fund and expected future Provision Fund inflows

4 Provision Fund coverage ratio is calculated as estimated future lifetime losses from the current PLP loan book over the Provision Fund buffer

Loan book update

Investors can download the PLP loan book via the below link.

The updated loan book listing contains information about every loan originated through the PLP since our launch until 31 December 2020.

We believe that transparency is the cornerstone of consumer lending. Open data allows those investing in consumer loans and applying for personal loans to make informed decisions, ensuring consumer lenders like Plenti are accountable for the quality of loans they facilitate.

Data in the loan book listing includes loan amounts, interest rates, loan purpose and anonymised information related to borrowers such as age, gender, state/territory of residence, employment status, income bracket and homeownership status.

PLP lending statistics as at 31 December 2020
Total amount lent1$793,227,217
Total principal repaid$493,922,434
PLP loan book$299,304,783
Number of loans outstanding26,260
Average outstanding loan amount$11,398
Weighted average remaining term37 months

1 Lending statistics since inception

PLP loan and borrower characteristics as at 31 December 2020 (based on principal outstanding)

Glenn Riddell

Written By Glenn Riddell