RateSetter Australia has confirmed that it is not part of Metro Bank’s acquisition of RateSetter in the United Kingdom, which was announced yesterday.

RateSetter Australia chief executive Daniel Foggo said RateSetter UK has a 13 per cent shareholding in the Australian company. Other shareholders include the founders, private equity investors and family offices.

Foggo said RateSetter UK’s 13 per cent stake would continue to be held by UK investors and will not be transferred to Metro Bank.

RateSetter was established in Australia in 2014 as a peer-to-peer lender. It still offers peer-to-peer lending but it has a more diversified funding based these days, including banks, a super fund, fixed income funds, the Clean Energy Finance Corporation and a warehouse.

Foggo said the company’s loan book was currently around A$400 million.

“We are in good shape. We have had strong credit performance, with less than 2 per cent of our customers in hardship or deferral.

“We had a record month for new business in July,” he said.

In an update on its provision fund (which covers loan losses), the company said it expects loan losses of $12.1 million. In mid-July its provision fund buffer was $17.4 million – 144 per cent of expected credit losses.