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Why the Plenti (ASX:PLT) share price is rocketing higher today

Technology continues to transform the traditional banking system.
The post Why the Plenti (ASX:PLT) share price is rocketing higher today appeared first on The Motley Fool Australia. –

The Plenti Group Ltd (ASX: PLT) share price is soaring in morning trade, up more than 6%.

Below we take a look at the ASX fintech lender’s trading update for the quarter ending 30 June.

What quarterly update did Plenti report?

Plenti’s share price is gaining after the company reported that loan originations for the past quarter increased 260% year-on-year. The record quarterly loan originations of $216.4 million were up 26% from the previous quarter. The company noted that the big year-on-year leap was in part due to COVID-19 related issues negatively impacting loan originations at that time.

June was also a record month for the fintech lender. June’s $83.4 million of loan originations work out to a “$1 billion annual run-rate”.

Plenti’s loan portfolio grew 96% year-on-year and 23% from the previous quarter to reach $757 million.

Commenting on the record quarter, Daniel Foggo, Plenti’s CEO said:

Reaching a one-billion-dollar loan origination run-rate in June shows we are successfully taking market share and accelerating towards our ambition of achieving a one-billion-dollar loan book during this financial year.

Pointing to the achievement that Plenti had doubled its renewable energy and personal loan warehouse facility in May (from $100 million to $200 million), Foggo also today announced a $100 million increase in Plenti’s automotive warehouse facility.

“This additional $200 million in funding capacity across our three verticals is another important step towards executing on our growth priorities,” Foggo said.

The company also reported that it is progressing towards its “first capital markets asset-backed securitisation of loans from its automotive loan warehouse facility” in the second quarter of the 2022 financial year. Plenti forecast that this will be around a $300 million transaction.

Plenti share price snapshot

The Plenti share price has seen plenty (sorry, couldn’t resist) of ups and downs over the past full year, with shares currently up 9%. By comparison the All Ordinaries Index (ASX: XAO) has gained 26% over the last 12 months.

The Plenti share price has picked up some momentum in 2021, up 18% year-to-date.

The post Why the Plenti (ASX:PLT) share price is rocketing higher today appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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