The Prospa Group Ltd (ASX: PGL) share price has shot higher at the open on Friday. Shares in the Aussie financials group are up 7.06% to $0.91 per share after the company's latest quarterly update.
Why is the Prospa share price shooting higher?
Prospa reported total originations returning to their pre-COVID levels faster than anticipated. That includes a third quarter (Q3 2021) origination of $121.0 million, marginally higher than the $122.2 million posted in the December quarter. Originations also jumped 20% compared to the December second quarter figures of $100.7 million.
Prospa reported "strong month on month growth" in originations with $30.8 million, $39.9 million and $50.3 million in January, February and March, respectively. 81% of originations were small business loans with a further 19% in its Line of Credit product.
The Prospa share price has shot higher on the news with investors bullish on the latest update. Prospa said its New Zealand business continues to perform well including 11% quarter on quarter originations growth.
Average Gross Loans increased to $354 million in the quarter with an annualised yield stable for the financial year to date of 32%. Total revenue before transactions costs edged 3% higher to $28.5 million, up from $27.7 million in the December quarter. The company said that signals a "post-COVID turnaround point" for the business.
Prospa CEO Greg Mosahl said, "Prospa has seen better than anticipated growth in originations, driven by stronger economic confidence and investment within the SME sector". "It is particularly encouraging to see such high levels of activity in the March quarter considering this is typically a quieter period than the busy December holiday season", he added.
The Prospa share price has left 7.06% at the time of writing to $0.91 per share. That means the company now boasts a $138.8 million market capitalisation after this morning's move.
The All Ordinaries Index (ASX: XAO) has edged 0.2% lower this morning in a soft start to the trading day.
