The car loan pool has gone from $5,924,814 to $19,899,782 in...

The car loan pool has gone from $5,924,814 to $19,899,782 in twelve months. In terms or revenue for this product, interest income was $1,766,183 and fee income was $920,274, resulting in combined revenue of $2,686,457. Not bad when you consider interest expenses were only $355,578 for the year.

Just doing a rough calculation, in the last six months the car loan pool has increased by $1.5M per month. Better than I expected. They state that they are looking at a $50M loan facility. It’s well on its way to reaching that $100M loan pool size in four years’ time.

You might recall in a previous post that in the 2015 Annual report, the Westpac interest rate for providing funds for car loans was 3.96%. That rate has increased to 4.95%. Westpac obviously want a slice of the action.

I also noted that while the loan pool is $19,899,782, the amount borrowed from Westpac is $16,545,520. In simple terms, for every 83 cents borrowed from Westpac, FSA is contributing 17 cents. The contribution is a bit higher than last year. It might explain why they have had decided to hold onto the $10M at this stage.

In my humble opinion, the car lending business is going to transform this business.

I will provide some further commentary in the coming weeks. I am not entirely happy with the result. I will get over it when I get the 4 cent dividend and buy a food hamper.

I am hoping to scrape enough money together @vestro to hitch hike down to Sydney to ask a few questions at the AGM in November. Hope to see you there. You can sit on the opposite side of the room.