Bondora unveils its 2026 transparency report: the health of its loan portfolio
Estonian crowdlending platform Bondora, operating through its Go & Grow, published in mid-July 2026 an extensive statistical report on the quality and composition of its loan portfolio. The document, titled Bondora Loan Portfolio Statistics 2026: A Transparency Report, offers a detailed view of the main risk indicators, recovery rates, and performance by market, in a context where European investors increasingly demand transparency about the platforms to which they entrust their capital.
According to the report, Bondora’s active portfolio has maintained consistent stability, with almost 80% of loans remaining active across all observed periods. Delinquency levels in the different aging buckets have shown only minor variations, indicating stable portfolio performance during the analyzed period. This data is particularly relevant in an environment of moderate interest rates and increasing competition among peer-to-peer lending platforms in Europe.
Majority of originations in low-risk categories
One of the most notable aspects of the report is the risk distribution in new originations. Most of the loans originated by Bondora are concentrated in low-risk levels, reflecting a prudent approach to credit risk management. The proportion of loans in categories AA-C has been increasing across all markets, suggesting continuous improvement in scoring models and applicant evaluation criteria.
The platform manages the portfolio through responsible lending decisions at origination and continuous monitoring after issuance. This monitoring includes analysis of portfolio composition, repayment behavior, and market-level performance over time. Loan terms are also part of the comprehensive credit risk assessment, balancing customer affordability, expected repayment behavior, and long-term portfolio performance.
Expected profitability consistently exceeds the 6% target
In terms of returns, the report details the calculation of the Internal Rate of Return (IRR) expected, a key metric for evaluating the profitability potential of the loan portfolio. The IRR forecast is based on a combination of historical performance data and the current behavior of active loans. The process analyzes the IRR of previously issued loans, closely monitors the current portfolio performance, especially indicators such as default rates at different stages of the loan lifecycle, and projects the expected performance of the current portfolio to calculate the IRR.
Significantly, the forecast IRR takes into account both expected defaults and recoveries. Expected defaults are treated as losses, while expected recoveries are added as gains, providing a net return estimate. After accounting for both factors, the forecast IRR has remained above Go & Grow’s return target of up to 6% per annum over the past years. The margin between the IRR and the target has been steadily growing, reflecting improvements in credit risk control and the overall strength of the portfolio.
Defaults, a manageable reality
The report also addresses the issue of defaults with a realistic but constructive approach. In the lending sector, defaults are a normal part of a loan’s life cycle. What matters most, according to Bondora, is how they are measured, managed, and recovered. A loan is considered in default when payments are more than 90 days overdue and the contract with the customer has been terminated due to delinquency. However, a default does not necessarily mean the total amount is lost.
Bondora begins monitoring and addressing repayment issues before a loan reaches default status, from the first signs of payment difficulty. Default marks the point at which the loan moves to a more structured recovery process, aiming to recover as much of the outstanding amount as possible. Recovery results vary by country, and in some markets Bondora is able to recover up to 70% of the defaulted amount. This figure justifies why defaults should always be analyzed together with recoveries, and not in isolation.
To better understand the potential impact of defaults, Bondora also examines the Loss Given Default (LGD), which reflects the remaining loss after expected recoveries. This metric helps assess the long-term health of the portfolio.
PD12: the risk metric that improves year after year
Another important metric used in Bondora’s portfolio analysis is the PD12, which measures the proportion of loans that default within 12 months of issuance. PD12 helps track how each loan cohort performs during its first year and is one of the key inputs used to calculate the expected IRR.
Bondora’s PD12 results have steadily improved, reflecting stronger risk models, more refined borrower assessment, and continuous enhancements in credit risk management. Together with the strong recovery results, a balanced risk appetite, and the healthy IRR margin mentioned earlier, this provides a clear picture of the portfolio’s long-term performance and ongoing improvements in credit risk control.
Market trends: Finland leads the growth
The report includes a market breakdown that reveals interesting trends. Finland, which currently accounts for about 60% of Bondora’s total portfolio, has experienced significant improvements. After a temporary smoothing in Q1 2023 as operations scaled up, PD12 saw a notable drop from 14% to 8.3% between Q3 2023 and Q1 2024, resulting in the strongest margin since the market launched.
In Estonia, one of Bondora’s most established markets, performance optimization in Q2 2023 contributed to the strongest margin between interest rates and PD12 to date. Key credit risk indicators, including PD12 and the margin between interest rates and default rates, have improved compared to previous years.
Latvia and the Netherlands, markets in earlier stages, show typical volatility while acquisition, pricing, and scoring models are being optimized. Denmark, also in an early phase, exhibits similar patterns of variability during the model adjustment period.
Recoveries by country: how much is actually recovered
One of the most valuable insights in the report is the breakdown of typical recoveries by market. Based on historical recovery data and a 10-year projection period, Bondora estimates that in the event of a default on a 1,000 euro loan, the principal recovery would be approximately as follows:
| Market | Estimated recovery (€) | % recovered |
|---|---|---|
| 🇪🇪 Estonia | 667 € | 66.7% |
| 🇫🇮 Finland | €689 | 68.9% |
| 🇱🇻 Latvia | €667 | 66.7% |
| 🇳🇱 Netherlands | €667 | 66.7% |
In the first three years after default, Bondora typically recovers between 31% and 54% of the outstanding principal, depending on the country. These repayments accumulate gradually, year after year, through structured recovery efforts. Although legal steps may be part of the process, many repayments are made through collaborative recovery efforts. Recoveries often take time, so consistency and long-term follow-up are essential.
Bondora has developed a structured four-step recovery process that delivers results while treating each client with fairness and respect. According to the report, most cases in recovery are in active follow-up stages, with only a minority classified as unlikely cases, which include bankruptcies, deceased borrowers, or long-term restructurings.
What does this mean for the European investor?
The publication of this transparency report responds to a growing demand in the European crowdlending sector: the need for clear and accessible data on portfolio health. In a market where platforms compete for investor trust, providing metrics such as PD12, projected IRR, and country-specific recovery rates allows investors to make more informed decisions.
The data presented by Bondora suggest a positive trajectory: consistent improvements in risk models, a diversified portfolio with a predominance of low-risk categories, and recoveries that significantly mitigate losses from defaults. However, as the platform itself warns, actual results may vary depending on the market, cohort, and individual case.
For investors interested in European crowdlending, this type of report becomes an essential due diligence tool. Transparency not only strengthens the platform-investor relationship but also raises standards across the sector, pushing other platforms to follow a similar path of information openness.
The report will be updated periodically, with quarterly reviews of some indicators and annual reviews of others. Investors can also consult the monthly statistics published by Bondora and the audited annual financial reports of the group for a broader view of performance.
Source: https://goandgrow.eu/en/blog/bondora-loan-portfolio-statistics-2026-a-transparency-report/