Analyzing Financial Reports of Loan Originators - What To Look Out For 🧐

[@Lince_X]

Hi Jakub, thanks for this usefull info video!

[@gionni7826]

Hi Jakub, I analyzed the 2020 Robocash group financial statement. The report is in english, audited by a big firm and according to IFRS. ROA= 17324/95408=18% ROE=17324/44149=39% Debt-to-Equity ratio=51259/44149=1.16 [‘000 USD] They seem good numbers.

[@gionni7826]

I didn’t understand well the following: Net margin on interest income 128 569 Credit loss allowance (67 925) Does it mean a 53% loss on credit loan for 2020?

[@P2PEmpire]

This represents the estimated amount of debt that they don't think will be able to recover.

[@P2PEmpire]

Do you analyze financial reports?

[@chadpt]

I didn't analyze because I have no clue what to look for. (your video fixed that, so thank you so much!). But I also use platforms that I trust to do this for me and are selective about which LO they allow in the platform (that's why I don't use Mintos). I was a bit surprised with the Debt-to-Equity ratio for the LO you looked at. Aren't the LOs in Peerberry supposed to only sell 45% of their loan book?

[@Rudechal]

@@chadpt read "The Intelligent Investor" Benjamin Graham. The Bible of Value Investing

[@Rudechal]

I do

[@P2PEmpire]

@Filipe This lender is part of the Gofingo group and the statement is from December 2019. The D/E is dynamic and it keeps changing all the time. Not sure what it is now. Keep in mind that the mentioned leverage is always for the group (not necessarily for the individual lenders). So far, both groups fulfilled their promises towards investors on PeerBerry.

[@efoplistis12]

Very helpful video!!!! I would like your opinion about Bondora. I 'm thinking of increasing my investings in their Go&Grow program.

[@P2PEmpire]

Thanks. Up to everyone to decide whether it's a good fit. Check the portfolio performance before you do so.

[@efoplistis12]

@@P2PEmpire so far they are giving me my daily profits of 6,75% per year without any problems. Couple of days ago their CEO informed investors of the published annual balance sheet for 2020.

[@P2PEmpire]

Yes, we are aware of that event. Our experience has been the same as yours so far.

[@brunokoch672]

Jakub, please scan all these crappy lenders at mintos;-)

[@P2PEmpire]

Unfortunately, due to the low interest and limited support of our viewers we are currently not able to allocate resources to build a feature that would scan the past and current performance of lenders at Mintos. We are, however, in discussions with Mintos to arrange an interview for which we will collect additional feedback from our newsletter readers.