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Portfolio Overview

A high-level examination of Baokim's $42.3M consumer loan portfolio, tracking key performance indicators, composition trends, and monthly operational metrics across the January–November 2022 analysis period.

Key Takeaways

Portfolio Growth +20.2%

Total outstanding grew from $35.2M to $42.3M, driven by personal and auto loan originations with improving credit quality.

Default Rate ↓ 18bps

Weighted default rate declined from 3.36% to 3.14%, reflecting tighter underwriting standards and improved borrower screening.

OpEx Reduced 30%

Operating expenses cut by 30% through process automation and streamlined reporting, boosting net margins across all product lines.

Total Loan Portfolio+8.2%
$42.3M

Outstanding principal balance

Net Interest Margin+0.31%
4.82%

Interest income less cost of funds

Weighted Avg. Default Rate-0.22%
3.14%

Across all product lines

Return on Assets+0.15%
1.87%

Net income / total assets

Operating Expense Ratio-4.8%
52.1%

OpEx reduced by 30% YoY

Provision Coverage+12%
142%

Provisions / NPLs

Figure 1

Portfolio Composition

Personal loans represent the largest segment at 35% of the portfolio, followed by auto loans (26.5%) and home equity lines (21%). The mix reflects a deliberate tilt toward higher-yielding unsecured products balanced by secured collateral positions.

Personal Loans (Unsecured)
$14.8M35%
Auto Loans (Secured)
$11.2M26.5%
Home Equity Lines
$8.9M21%
Small Business Loans
$5.1M12%
Student Loans
$2.3M5.5%
Figure 2

Portfolio Growth

Stacked area chart showing quarterly portfolio evolution by product line. Total outstanding grew from $35.2M to $42.3M over the analysis window, a 20.2% increase driven primarily by personal and auto loan originations.

Q1 2021Q2 2021Q3 2021Q4 2021Q1 2022Q2 2022Q3 2022Q4 2022$0M$15M$30M$45M$60M
Figure 3

Monthly Trends

Origination volume increased steadily from 485 to 670 loans per month, while the default rate declined from 3.4% to 2.8%. Net interest margin expanded from 4.51% to 4.82%, reflecting improved pricing discipline and lower cost of funds.

Jan 22Feb 22Mar 22Apr 22May 22Jun 22Jul 22Aug 22Sep 22Oct 22Nov 220%2%4%6%8%
  • NIM %
  • Default %
Table 1

Delinquency Distribution

Delinquency buckets by product line. Personal loans show the highest 90+ DPD concentration at 2.9%, consistent with their unsecured nature. HELOCs maintain the strongest current rate at 96.8%.

BucketPersonalAutoHELOCSMBStudent
Current88.2%94.1%96.8%89.5%95.2%
30 DPD5.8%3.2%1.8%4.8%2.6%
60 DPD3.1%1.5%0.8%2.9%1.2%
90+ DPD2.9%1.2%0.6%2.8%1%

Analyst's Note: The portfolio demonstrates healthy diversification across secured and unsecured products. The declining default trend and expanding NIM suggest that the underwriting improvements and cost reduction initiatives implemented during the analysis period are yielding measurable results. The 30% reduction in operating expenses is particularly noteworthy and warrants further examination in the profitability matrix.

§1 Portfolio OverviewBaokim Loan Profitability Analysis — FY 2022