European P2P lending platform Bondora reveals that the number of loans clawed back and the amount of money clawed back from missed or skipped payments “increased in August.” This is the reverse of the trend observed in July 2021, which saw these two figures “go in opposite directions”.
With 74,261 missed payments recovered last month, there was a 2.4% MoM increase in total recoveries on the Bondora platform. In September 2021, all stages of recovery had “more recoveries, with internal collections experiencing the largest jump of 9.7% to 13,742”. The Bondora team further noted that this was also true for recoveries “by country, which were higher overall”. Estonian recoveries “rose 4.4%, Spanish recoveries by 0.2% and Finnish recoveries by 1.2%,” the Bondora update revealed.
The amount of cash recovered in September 2021 managed to exceed the million euro mark, amounting to “€ 1,020,102”. This represents “an increase of 15.3% compared to July and places the average recovery of missed payments at € 13.74 against € 12.20 the previous month”.
The company also noted that this was mainly due to bailiff recoveries, which were 19.7% higher, and rare case recoveries, where 62.1% more money had been recovered. Notably, there was “a negligible amount of money recovered at the in-house collection stage,” the update noted.
Annual recovery rate
In another trend reversal, the total annual recovery rate rose to 42.5% from 42.2% in July 2021. This was “led by the growth in recoveries over the past three years, 2021 increasing by 0 , 5% to 53.6% “. The Bondora team also pointed out that of the eight years of recovery recorded, “six of those years had higher returns in August.” This type of “steady growth at all levels is a welcome sign for Bondora investors,” the company said.
Collections by country
Collections for missed Finnish loan payments “have been strong in recent years”. This would have been “most impressive” as the recoveries of ignored payments for Finnish fixtures have increased every year:
2021: + 1.6%
2020: + 2.1%
2019: + 0.6%
2018: + 0.4%
2017: + 0.4%
2016: + 0.6%
2015: + 0.4%
2014: + 0.4%
Although this year’s recoveries from Spain’s missed payments fell by a fairly large margin, they “still stood at an impressive 84.0%, still the highest recovery rate in the past eight years.”
Growth at all levels
The end of summer 2021 brought “substantial numbers” of Bondora recoveries. The number of failed loan repayments recovered “rose 2.4%, while the amount of money recovered grew an even more impressive 15.3%.” Bondora’s team update further noted that they had done a good job of recovering missed payments for the Finnish origins, “whose recovery rate has increased for all missed payments since 2014”.
In another separate update from Bondora, the company noted that after seven consecutive months of increased creations, August “saw a slight decrease in creations from Bondora.” A total of € 11,584,049 was generated last month, “a decrease of 2.0% from July. Nevertheless, there is still a considerable amount of new loans issued.
As mentioned in the update:
“Finland and Estonia saw their origins take opposite directions in August. Estonian assemblies decreased by 3.8%, while Finnish assembly totals increased by 1.2%. This brought the total share of Finnish origins in Bondora to 36.6% from 35.6% in July. In addition, the cumulative interest rate on all Bondora origins increased from 0.2% to 21.9%. “
As a Bondora blog post confirmed, Finland has only “created D-rated loans”. And in Estonia, origins “have shifted slightly to mid-range rating categories”.
For more details on this update, click here.