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Aug 17Liked by Wolf of Harcourt Street

Nice write-up, thanks!

How do you conclude that: This credit expansion strategy has led to increased revenue and greater resilience, which outweighs the higher delinquency rates associated with the expansion?

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They demonstrate this in the slide deck by showing what their NPLs would have been without these expansions. The increase in NPLs over the last several quarters is largely due to these expansions. On this basis, there's a stable to downward trend over the last few years, aside from normal seasonal fluctuations. This indicates that they have been compensated for the additional risk they've taken.

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