[Editor’s note: This is a guest post from Mark Lusky of Mark Lusky Communications, a writing and marketing communications firm, operating since 1982....
Yirendai announced the appointment of Dr. Yichuan Pei as chief credit officer; Dr. Pei was recently vice general manager of Ping An Bank in Shanghai; "Dr. Yichuan Pei is a highly regarded credit expert with extensive experience in the financial industry. We warmly welcome him to join our senior management team. With Dr. Pei assuming his roles as chief credit officer, we are very confident to further enhance our market leading capabilities of credit underwriting and risk management," said Ms. Yihan Fang, chief executive officer of Yirendai. Source
Chinese online consumer lender Yirendai has announced progression toward securitization of a portfolio of consumer loans; the firm has transferred an existing trust fund of RMB300 million ($43.6 million) used to fund loans on its platform to Bohai International Trust Co., Ltd., and the firm has completed the issuance of asset-backed securities in the amount of RMB300 million through private placements. Source
China’s regulators have imposed extra cost and forced some emerging p2p lenders out of business as they look to eliminate problematic and fraudulent companies; Sara Hsu of Forbes sat down with Yihan Fang of Yirendai, and with Johnson Zhang of Hexindai at LendIt Fintech USA 2018 to discuss the current states of p2p lending in China. Source.
Last Friday Peter and I had the honor of joining the CreditEase team on the NYSE floor to ring the...
Yirendai has announced it will release its Q3 unaudited earnings on November 15, 2016, after the US markets close; analyst Peter Engelwood is reporting that in the last quarter, institutional investors have increased their percentage holding of Yirendai's equity by 1.53%, to a total of 6.20%; the stock has risen from approximately $20 to $29 in the past month. Source
Yirendai, an affiliate of CreditEase, is the only Chinese online lender publicly traded on a US exchange; its stock price closed at $29.29 prior to the company's earnings announcement after the closing bell on March 15; year-to-date the stock is up 41.36%; the earnings results showed revenue of $154.3 million for the fourth quarter, beating estimates by $19.38 million and increasing 137% from the comparable quarter; revenue for the year was $466.4 million an increase from $190.1 million in 2015; earnings per share for the fourth quarter were $0.91, beating estimates by $0.58 and increasing 287% from the comparable quarter; earnings per share for the year were $2.72 an increase from $0.79. Source
The Chinese online lender issued over $2 billion loans in the quarter to over 200,000 borrowers; this represented year over year growth of 95%; 2017 total originations were $6.3 billion across nearly 650,000 borrowers; Revenue in the fourth quarter was $280.5 million and net income was $69 million. Source
Yirendai is being sued by shareholders for inadequate transparency, regulatory activity and risk management regarding Chinese government regulations; the company has requested the court toss the case; the case is focused on worst case revenue predictions that the company says were never realized. Source
The new agreement with PICC P&C would provide Yirendai with a performance bond for certain loans originated through their marketplace; PICC P&C agreed to reimburse investors should any losses occur because of due diligence issues; Yihan Fang, CEO of Yirendai, said, "We are pleased to begin working with PICC P&C on performance bond. We believe a strong alliance between our two industry-leading companies will enable us to provide higher quality products and services to our customers to better serve the large demand for personal finance." Source