European peer-to-peer lending platform Bondora saw a 0.2 per cent reduction in returns in September 2021, but noted that actual returns were still higher than their target rates.
This followed a “surprisingly positive” jump in originations in August, when yearly returns were approximately 0.4 per cent higher than in July.
In September 2021, the average interest rate to investors was 15.4 per cent – down from 15.6 per cent in August, but still higher than the 9.5 per cent average for the third quarter of the year. The platform had set a target of 8.9 per cent on loans originated in the third quarter of 2021.
Returns on loans originated in Estonia grew by 0.2 per cent to 18.2 per cent. Finnish loan originations followed the opposite trend, declining by 0.2 per cent to 7.2 per cent in September.
The Estonia-based platform saw better than expected returns in its low-rated loans, and worse than expected returns in its higher rating categories.
“Despite having slightly lower return rates in September, Bondora originations are overall still in good standing compared to their target rates,” said the platform in a blog post.
“As a whole, Q3 2021 originations had a 9.5 per cent return rate, which is 0.6 per cent above the target. Estonian originations still make up the bulk of the portfolio.”
Bondora noted that 2020 originations were also on a growth path, climbing by 0.2 per cent to return 16.7 per cent.
Loans originated in the fourth quarter of 2020 returned 21.3 per cent – 10.2 per cent higher than their target rate.