LendInvest profits stay level around £14m for 2023
The London-based fintech saw a £500m investment from Chetwood Financial just following the year-end.
Property lender LendInvest has seen profits slightly increase over the past year, rising by 1 per cent.
The fintech saw profits rise from £14.2m for the 2022 financial year, which bumped up slightly to £14.3m this year, before tax.
Its after-tax profits rose by 5 per cent, from £10.9m to £11.4m, with LendInvest CEO Rod Lockhart noting the growth of platform assets under management, new funding relationships and products, and “significant advancements” in technology against a tough market backdrop.
“Our ability to adapt to changing market dynamics has been evident through our product offerings and pricing strategies,” Lockhart said.
“Additionally, we have also focused on reducing our credit risk profile and enhancing our capital efficiency.
“Whilst the economic backdrop remains uncertain, we remain confident in the resilience of our business model and funding strategy, the increasingly capital-efficient nature of our lending and the long-term opportunities for our disruptive, differentiated offering.”
Platform AuM increased by 21 per cent to £2.6bn (from £2.1bn in 2022), which was driven by a 21 per cent increase in buy-to-let Platform AuM
LendInvest’s EBITDA fell by 30 per cent, from £20.3m to £14.3m, which it said was primarily due to expected launch costs for a new residential mortgage product, as well as an increase in impairment charges largely caused by two legacy defaulted loans.
The company launched its first residential mortgage product in December, and just completed a new £500m partnership with Chetwood Financial to fund buy-to-let and residential mortgage products.