Funding Circle lowers projected returns

By Daniel Lanyon on 25th April 2019

P2P/Marketplace Lending

The P2P lending platform has said that investors should expect a lower range in both in both its Balanced and Conservative portfolios.

Funding Circle lowers projected returns
Image source: Photo by rawpixel.com from Pexels

Funding Circle has lowered its forecsted investor returns prompting a near 15 per cent fall in its share price since the news broke yesterday.

The news follows a double whammy of bullish news for the company as it announced a tie-up with Lending Club as well as seeing loans soar 44 per cent to £3.4bn, with revenues growing 40 per cent year-on-year in Q1 of 2019 but not enough to stop investors selling shares.

The leader in the online SME lending market says it’s revising projected returns for both its Balanced and Conservative lending options. Balanced is now forecasted to 4.5 per cent to 6.5 per cent and Conservative from 4.3 per cent to 4.7 per cent.

Of course the actual return may be higher or lower than the projected return, Funding Circle emphasised.  

The P2P lender says it lowered projected returns following its assessment process, the interest rates at which it was lending businesses and the performance of loans at present levels.

The last time Funding Circle shifted down its return projections was in February when it forecasted that its Balanced portfolio would return between 5.5 and 6.5 per cent while its Conservative portfolio was forecasting returns of between 4.9 and 5.2 per cent,

Before this Balanced was forecasted at 6 – 7 per cent and Conservative at 5 – 5.5 per cent.

 

 

 

 

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