Plenti Group Limited (ASX: PLT), Australia’s largest fintech consumer lender, has delivered a stellar first-half performance for FY25, showcasing profitable growth, strategic partnerships, and innovation across its lending verticals. The company’s half-year results for the period ending 30 September 2024 highlight its ability to scale efficiently, underpinned by its proprietary technology platform.
Key Metrics Reflect Robust Performance
Plenti’s loan portfolio reached $2.3 billion, a 14% year-on-year increase, supported by $627 million in loan originations. Revenue surged 28% to $124.2 million, while cash net profit after tax (NPAT) soared by 260% to $5.5 million. CEO Adam Bennett, who joined in July, remarked, “These results reflect the great work of the team leveraging our capabilities to deliver strong operating and financial outcomes.”
Operational efficiencies were a standout, with the cost-to-income ratio falling to 24% from 29% a year earlier. Plenti also achieved strong credit outcomes, maintaining a net loss rate of 1.11% and a 90+ days arrears rate of 50 basis points, reflecting the prime nature of its loan book.
Strategic Partnerships Drive Growth
The partnership with National Australia Bank (NAB) emerged as a cornerstone of Plenti’s success. After a successful pilot with NAB employees, the “NAB powered by Plenti” car and EV loan was launched to NAB’s customer base in September. Plenti expects moderate volumes in the near term as the product iterates but sees significant potential as the rollout progresses.
Further bolstering its automotive lending portfolio, Plenti executed a Tesla rate subvention campaign and announced its role as the exclusive finance provider for Cadillac’s Australian EV launch. These developments highlight Plenti’s integration capabilities and its ability to deliver bespoke solutions quickly—a Tesla offering went from concept to launch in just three weeks.
Renewable Energy Lending Shines
Plenti’s renewable energy lending continues to outpace expectations, with the loan book growing 28% year-on-year to $303.7 million. This growth was bolstered by record originations of $88 million during the half, reflecting strong uptake of its GreenConnect platform. Plenti also secured $60 million in discounted funding under the Clean Energy Finance Corporation’s Household Energy Upgrades Fund, positioning it to support more customers in transitioning to sustainable energy solutions.
A Technology-Led Business
Plenti’s proprietary technology remains central to its success, enabling seamless partner integrations and scalable growth. The platform supports innovation in customer experience and operational efficiency, including the use of AI to enhance document processing and marketing efforts. These investments ensure Plenti stays ahead in delivering faster, fairer loans to its customers.
Funding and Financial Resilience
Plenti continues to demonstrate financial discipline, completing $458 million in automotive asset-backed securities (ABS) issuance and $330 million in personal and green ABS issuance post-period. These transactions bring total ABS issuance to over $2.8 billion, reinforcing Plenti’s ability to attract strong domestic and international investor support.
Outlook
With October loan originations up 26% year-on-year, Plenti is optimistic about continued growth in the second half of FY25. The company aims to further reduce its cost-to-income ratio below 24% while driving efficiencies as its loan portfolio scales toward $3 billion.
For Plenti, the future looks as bright as its past six months have been. From strategic partnerships to strong financial metrics, the fintech leader is charting a path of disciplined growth and market innovation. “We’re focused on leveraging our technology and partnerships to deliver value for both our customers and shareholders,” said Bennett.
Closing Thoughts
Plenti’s 1H25 performance underscores its ability to blend technology, strategy, and execution to capture market opportunities. As Australia’s fintech trailblazer, Plenti remains a company to watch, especially as it accelerates its efforts in renewable energy lending and deepens its strategic partnerships.
