Wisr (WZR) by the Numbers

by Chris Limberg on Apr 28, 2022

Yesterday WZR released its quarterly update conveying current information on the business performance for quarter 3 of financial year 2022 (Q3FY22). As we review the performance metrics for WZR it is important to know how WZR makes money. Simply put WZR makes money by borrowing at one rate and lending those funds at a higher rate. With this in mind we review the key performance statistics Q3FY2022:

  • A record number of new loans for the quarter
  • Total new loans commenced now over $1 billion dollars in 4.5 years
  • 23 consecutive quarters of new loan growth
  • Growing funds on loan
  • Consistent Quartey revenue growth over the last 11 quarters
  • Consistently lending to higher quality borrowers. Higher quality borrows means lower non-performing loans
  • $58.5 million cash in the bank

Raising interest rates

WZR has taken steps to marginalise the effects of increasing interest rates. Higher rates will be mitigated through two main aspects. Firstly, all new loans will be written at higher interest rates. Second, WZR has a interest rate hedging program the effect of which is to negate the impact of interest rate movements on existing loans.

Strong position for the Future Growth

Finally, we assess WZR current position in light of management’s focus on growth towards a 3-billion-dollar loan book:

  • Growth – Demonstrated consistent growth for longer than 5 years
  • Loan quality – loans behind on payment less than 1% loans. WZR are backed by a big four bank
  • Core business – positive cash flow of core business in back-to-back quarters
  • Capital position – $58.5 million cash balance to fund business towards $1 billion loan book
  • Strategy – continued innovation reducing customer acquisition cost and creating potential new revenue streams

click here to view the WZR ASX release 26/4/2022