LendInvest earnings soar as it looks to disrupt ‘slow moving’ banks
ONLINE property lender LendInvest has reported an 82 per cent jump in core earnings, as it looks to disrupt the UK mortgage market.
LendInvest, which used to be a peer-to-peer lender before it shut its platform to retail investors, posted core earnings of £4m for the year ended 31 March 2019, up from £2.2m the previous year.
The firm, which is considering a stock market flotation, said that platform assets rose by 69 per cent to £788.3m over the same period, while revenue rose by 36 per cent to £72.7m.
Christian Faes, co-founder and chief executive of LendInvest, said that the results showed that fast growth fintech businesses can invest in technology while also making a profit.
“The UK mortgage market is dominated by banks which are slow moving, suffocated by ever-changing regulation, legacy processes, and technology from the 80s,” he added.
“This £300bn market represents a significant opportunity and it is LendInvest’s mission to disrupt it.
“These results show that we are well on our way to building a business that is going to be a substantial player in the UK mortgage market in the years ahead.”
LendInvest has offered a buy-to-let product since 2017 and is set to unveil its first homeowner loan product this year.
It has secured more than £500m in new funding from a mix of investors and institutions, including a £200m funding line from HSBC to support the launch of its homeowner loan product.
The firm also offers listed retail bonds through its subsidiary LendInvest Secured Income.