Since Lending Club first went public we have been reviewing their quarterly earnings and have also begun covering OnDeck’s earnings. However, there is a third online lending company in China that is listed on the NYSE called Yirendai (YRD). They are a subsidiary of CreditEase, one of the largest companies focused on fintech in China. Yesterday the company announced Q4, 2016 earnings and full-year 2016 results and today the company held their earnings call. The Chinese market is fascinating and Yirendai is a company that is leading the way. Going forward we will be covering their earnings releases.
Looking strictly at the stock price since its IPO Yirendai has performed much better than the public online lenders in the US. Their stock is up over 200% at time of writing while both Lending Club and OnDeck have seen decreases of over 50% to date. It’s important to remember that the Chinese market is much different than the US but it’s interesting to see just how well Yirendai has done over the past two years.
Yirendai continues to post impressive origination growth. Below is a chart taken from their earnings presentation showing loan volume growth since 2013 in billions (RMB). The company originated 20.28B RMB or $2.9 billion USD in loans in 2016, growing over 100% year over year. [Read more…]