Lending Works maintains stable returns in Q3

Lending Works has reported stable returns throughout the third quarter of the year, while lowering its expected loss rates.

The former peer-to-peer lending platform, which rebranded as embedded finance platform Fluro earlier this year, said overall expected annual losses slightly decreased from 4.1 per cent in the second quarter, to four per cent in the third quarter.

Nicholas Harding, chief executive of Lending Works, said that the platform will continue to monitor loss estimates closely due to the external economic environment.

Read more: Lending Works reports stable returns and loss rates in Q1 update

“In [the third quarter of] 2023, we continued to focus on the broader macroeconomic conditions and the impact they may have on our active loan customers,” Harding said.

“We also continue to enhance our processes and procedures to support borrower customers who may face changes in their financial circumstances.

“Both expected annual returns and loss rates have remained relatively stable compared to our [second quarter] 2023 update.

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“Finally, based on the most recent portfolio performance, we will continue to pay at the target interest rate level for all cohorts.”

Average annual returns on past loan cohorts (from 2014 to 2019) are 4.4 per cent for growth investments, and 3.8 per cent for flexible investments.

For the 2020 and 2021 loan cohorts, the average returns are 2.5 to 4.5 per cent for growth investments, and between 1.8 and four per cent for flexible investments.

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