In October, we registered a new record for the platform, in terms of total repayments to our investors. Compared to September, repayment and recovery figures (not including interest) increased by 19% from €14.7 to €17.8 million euros, with investment up 6% (from €9.2 million in September to €9.8 million in October). This continues an upward trajectory in regard repayments, recoveries and investment rates, that has emerged in recent months.
Repayments and recoveries
In October, we saw €13.7 million in loan repayments, with an additional €4.1 million from recovered loans. As a result, investors received a total of €17.8 million in principal, or €19.3 million including interest (another historical benchmark for the platform).The total returns amounted to €1.5 million, with an average return rate of 8.96% p.a.
The majority of recoveries were sourced from defaulted loans in Lithuania (€2.75 million) and Latvia (€0.6 million). Most of the repaid loans came from Finland (€5.7 million) and Estonia (€5.5 million). It should be noted that as repayments are made and our outstanding portfolio decreases, our default rate will increase.
The surge in repayments not only bolsters our operational efficiency but also significantly contributes to the trust and confidence our investors place in us.
Repayments and recoveries over a 6-month period
The stability of our loan origination figures continues to be a positive aspect of our operations. In October, we successfully originated loans valued at €9.8 million, mostly in Estonia and Lithuania, with an average LTV of 50.76% and average interest rate of 10.8%. Each of these new loans strictly meet the standards set forth in our updated credit policy.
Loan origination over a 6-month period
Summary of the loan portfolio as of October 31, 2023
For more data please have a look at our statistics page.
For more information about our recovery process, please take a look at our recent blog post covering recoveries in Lithuania and Latvia. We will keep you informed about the credit portfolio quality monthly.