Prospa Group Limited (ASX: $PGL) has released its trading update for the quarter year ending 31 March 2024. The update highlights a 7.7% decrease in closing gross loans to $822.1 million compared to the prior corresponding period, and a 7.3% decrease in revenue to $69.3 million. The company also reported a 7.9% decrease in total originations and a 3.0% increase in active customers to 21,500.
Greg Moshal, Co-Founder and Chief Executive Officer, stated, 'Early arrears are trending within acceptable levels as changes in risk settings continue to take effect. More mature arrears remain elevated and we are working with those customers on revised payment arrangements as required. In relation to our funding, we were pleased to receive strong support from a range of investors for our third ABS solidifying our position as a reliable issuer in this important funding market. Our technology re-platforming investment demonstrates our continued investment in delivering better digital experiences for our customers and partners and our long term commitment to the business.'
Prospa's Q3 FY24 trading update reflects a decrease in closing gross loans and revenue compared to the prior corresponding period, attributed to the company's cautious risk appetite. The company's focus on managing credit performance on the existing loan book while attracting premium grade customers remains a priority. Prospa also successfully priced its third ABS offering, indicating strong support from investors. The outlook emphasizes Prospa's commitment to delivering profitable growth alongside best-in-class products and services, while closely monitoring the credit quality of its loan book and expanding its capital product reach.