Canadian subprime lender Axis Auto Finance posted another year of growth for fiscal year 2021.
Axis logged $115.2 million in originations for the fiscal year 2021, ending June 30, a 46% year-over-year increase. according to the lender’s earnings report.
Origination volume managed for Westlake Financial clocked in at $40.2 million. Axis partnered with Los Angeles-based Westlake Financial in the first quarter of 2020 to originate loans for a fee. Westlake services and retains the loans on its own balance sheet.
Total outstandings landed at $171.8 million, up from 78.7 million in FY 2020. Westlake managed assets accounted for $45.1 million of the total portfolio, up from $13.3 million YoY.
Meanwhile, delinquencies and credit losses continued to decline. Delinquencies dropped 37% YoY to 2.6%, and annualized credit losses declined to 9.06% from 11.77% YoY.
Credit performance has continued to remain strong following pandemic-related closures. At one point in March 2020, 12.5% of Axis’ borrowers requested deferral payments. However, that number, along with delinquencies, started to decline after the first wave of COVID-related shutdowns in Canada and continued to fall through fiscal year 2021.
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