Earnings call transcript: Plenti lifts q2 originations to record AUD 613 million

Plenti Group Limited reported a record second-quarter loan originations of AUD 613 million, marking a 29% increase from the previous year and a 14% rise from the prior quarter. The company's loan book grew to AUD 3.5 billion, reflecting a 24% increase year over year. Among the lending verticals, renewables lending set a new record, rising 105% to AUD 117 million.

Consumer auto originations grew by 7% year over year, while commercial loans increased by 35% and personal loans rose by 21%. The company's credit quality remained strong, with annualized net losses at 96 basis points and 90-plus day arrears stable at 42 basis points. Despite higher macroeconomic challenges, Plenti's loan book showed no signs of stress.

Management expressed confidence that all FY 2027 goals remain on track, including a cost-to-net-margin ratio below 55%. The stock closed at $0.73, which is near the lower end of its 52-week range. Analysts view the company as undervalued, with a Fair Value of $0.62.