By Daniel Lanyon on Friday 5 May 2017
The largest marketplace lending platform has posted its fourth quarterly loss but looks in better shape than 12 months ago.
Lending Club originated $1.96bn of loans in the first quarter of 2017 down 1 per cent from the fourth quarter of 2016.
Despite the increasing stability following its annus horribilis last year, the quarter was still down by nearly 30 per cent compared to the same period last year.
This has prompted a loss for the quarter of $29m, compared to a modest profit for the same period 12 months ago. Last May Lending Club founder and CEO made a swift exit following allegations of impropriety at the firm.
Its new CEO Scott Sanborn says demand for its loans are back on track with capital coming increasingly from banks.
"We redeployed resources for growth and invested heavily in our technology platform in the first quarter. With continued strong investor demand, I am pleased with the acceleration we saw as we exited the quarter," he said.
Banks further increased their purchasing, funding 40 per cent of total originations for the quarter, up from 31 per cent in the fourth quarter, and retail investors expanded to 15 per cent, up from 13 per cent in the prior quarter.
The firm has lent a total of $26bn since inception almost ten years ago.