Sorry man that 20-30 not accurate. Interest and fees are about...

Sorry man that 20-30 not accurate.

Interest and fees are about 41% of the gross loan book PA, in other words that is a more accurate average effective interest rare. The headline interest rates are most likely lower, however establishment and late fees ect add up.

Important to note that 5-6% of loans are written off as bad debts and further similar amount is provisioned. The provisioning is recorded as the NET loan book.

Another important thing to note in the Annual Report is the amount of the loan book in arrears beyond 30 days, that about 30% of the loan book. Its a big number, though steady last couple of years.

So, crucial to understand these are high risk borrowers paying a fortune in interest and fees for that very reason. Arrears and provisioning rates are very imprtant to monitor as a big increase imply degrading lending standards, a clear risk given the growth MNY is gunning for.

Thought I should clarify!