LendingClub shakes off governance troubles with loanbook and revenue boost
US PEER-TO-PEER giant LendingClub seems to have shaken off the corporate governance scandal that hit the platform last year as it saw its loan book grow 10 per cent in the second quarter.
LendingClub reported that loan originations for the second quarter of 2017 were $2.15bn (£1.61bn), up 10 per cent both quarterly and year on year.
It reported its second-highest-ever net revenue at $139.6m, up 12 per cent on the first quarter and 35 per cent year on year.
Overall its losses narrowed during the quarter to $25.4m, an improvement on the $29.8m loss posted in the first quarter and the $81.4m of the same period last year.
The platform has also upped its revenue forecasts for 2017 from an initial range of $575m to $595m to a higher estimate of $585m to $600m.
It is also predicting losses will be smaller at around $65m rather than $72m.
“It’s great to be back to growth.” Scott Sanborn, chief executive of LendingClub, said. “Our second-quarter results demonstrate the power of the LendingClub platform and the capability of our team to execute.
“We are excited about the momentum building in the business and the massive opportunity that lies ahead.”
Lending Club saw its founder and chief executive Renaud Laplanche resign last year amid a high-profile corporate governance scandal that pushed its shares down 50 per cent as investors lost confidence in the platform.
The more positive results yesterday saw its shares close up 7.8 per cent at $5.46 on the New York Stock Exchange.
Read more: Lending Club hires Thomas Casey as CFO