17:00 Thu 18 Apr 2019
Funding Circle Hldgs - Funding Circle Q1 2019 Update
Q1 2019 Update
The data by country included in this announcement is also available on the Company's website at corporate.fundingcircle.com/investors/loan-performance-statistics.
Highlights
· Loans under management of
· Revenue growth of approximately 40% year-on-year through a combination of greater loans under management and originations, higher transaction yield, due in part to policy changes last year in the US, plus growth in other revenue lines
· In Q1, Funding Circle announced two new institutional investor products to launch in 2019: private direct lending funds to be launched in continental
· On 17 April, the
· On 10 April,
Outlook
Funding Circle confirms that the Group is trading in line with the Board's expectations for the full year.
Group performance
|
|
Q1 2019 |
Q1 2018 |
% |
Loans under management |
£m |
3,378 |
2,342 |
44% |
Originations |
£m |
644 |
525 |
23% |
Investor Returns
· Across all geographies, investor returns on a net basis are expected to deliver 4.5-8.4% for 2018 and 5.0-8.5% in 2019
·
· US: 2014-2016 performance remains in line with previous projections. Loans originated in 2017 and 2018 are now projected to deliver net returns of 5.4-6.3% and 5.0-6.3%. The Company tightened higher risk band lending in the US during Q1 2019 and is targeting 2019 projected net returns of 5.7-7.8%
·
Samir Desai CBE, CEO and co-founder, said: "Q1 was a period where Funding Circle reinforced its leadership position across each of its markets, reaching a new high of loans under management of
Our statistics - Q1 2019
The following information is reproduced from each country's statistics pages, which can be found at corporate.fundingcircle.com/investors/loan-performance-statistics.
Loans under management (million)
|
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 YTD |
Group (£) |
52 |
145 |
366 |
860 |
1,362 |
2,107 |
3,148 |
3,378 |
|
52 |
144 |
332 |
653 |
1,027 |
1,584 |
2,208 |
2,351 |
US ($) |
N/A |
54 |
261 |
354 |
577 |
939 |
1,055 |
|
DE (€) |
N/A |
27 |
30 |
65 |
131 |
144 |
||
|
N/A |
16 |
40 |
95 |
106 |
Originations (million)
|
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 YTD |
Group (£) |
49 |
130 |
311 |
721 |
1,065 |
1,738 |
2,292 |
644 |
|
49 |
129 |
279 |
531 |
823 |
1,264 |
1,531 |
419 |
US ($) |
N/A |
334 |
281 |
514 |
792 |
238 |
||
DE (€) |
N/A |
33 |
19 |
55 |
105 |
27 |
||
|
N/A |
21 |
34 |
81 |
21 |
Gross Yield
|
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 YTD |
|
9.2% |
8.4% |
9.9% |
9.6% |
9.6% |
9.6% |
9.7% |
9.9% |
US |
N/A |
14.5% |
13.2% |
12.3% |
12.8% |
12.9% |
||
DE |
N/A |
6.7% |
9.5% |
9.5% |
10.2% |
10.6% |
||
|
N/A |
8.6% |
10.7% |
11.6% |
11.9% |
Projected annualised return range (after fees and bad debt)1
|
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 YTD |
|
7.1-7.2% |
6.0-6.2% |
7.0-7.3% |
6.5-7.0% |
5.1-5.7% |
4.1-5.1% |
4.5-5.5% |
5.0-7.0% |
US |
N/A |
2.6-2.8% |
4.1-4.9% |
5.4-6.3% |
5.0-6.3% |
5.7-7.8% |
||
DE |
N/A |
0.1-1.0% |
2.3-4.1% |
5.0-6.9% |
5.3-7.3% |
5.5-7.5% |
||
|
N/A |
3.5-4.4% |
5.6-7.5% |
6.4-8.4% |
6.5-8.5% |
Projected bad debt rate range2
|
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 YTD |
|
1.3-1.3% |
1.5-1.6% |
1.8-2.1% |
1.8-2.3% |
3.0-3.6% |
3.7-4.6% |
3.3-4.3% |
2.1-4.0% |
US |
N/A |
10.7-10.9% |
7.5-8.3% |
5.4-6.3% |
6.1-7.3% |
4.8-6.8% |
||
DE |
N/A |
4.7-5.6% |
4.4-6.2% |
1.5-3.4% |
1.7-3.7% |
1.8-3.8% |
||
|
N/A |
3.2-4.1% |
2.2-4.2% |
2.2-4.2% |
2.3-4.3% |
ENDS
Media Enquiries:
Funding Circle
TB Cardew
About Funding Circle:
Funding Circle (LSE: FCH) is a global SME loans platform, connecting SMEs who want to borrow with investors who want to lend in the
Forward looking statements and other important information
This document contains forward looking statements, which are statements that are not historical facts and that reflect Funding Circle's beliefs and expectations with respect to future events and financial and operational performance. These forward looking statements involve known and unknown risks, uncertainties, assumptions, estimates and other factors, which may be beyond the control of Funding Circle and which may cause actual results or performance to differ materially from those expressed or implied from such forward-looking statements. Nothing contained within this document is or should be relied upon as a warranty, promise or representation, express or implied, as to the future performance of Funding Circle or its business. Any historical information contained in this statistical information is not indicative of future performance.
The information contained in this document is provided as of the dates shown. Nothing in this document should be construed as legal, tax, investment, financial, or accounting advice, or solicitation for or an offer to invest in
Definitions and notes to the editor:
1. The projected annual return shows how loans are estimated to perform. Loans are shown by the year they were taken out, and are after fees and bad debt. Returns equal gross yield minus net losses minus servicing fee and is estimated, using an internally managed model, by cohort of origination incorporating actual returns received for each cohort and adding future expected returns which are determined using the same aforementioned model. Net yield is compounded to recognise re-investment. These expectations may be revised, for example if macroeconomic conditions change, and the projected return, projected gross yield and the projected bad debt rate may be adjusted to reflect this.
2. The projected bad debt rate shows the projected annualised percentage of loans, by loan amount, that will not be repaid. Loans are shown by the year they were taken out and include recoveries. It can take up to five years for loans to be fully repaid, so the projected return, projected gross yield and projected bad debt rate take into account how each year of loans are performing and how Funding Circle expects them to perform in future. These expectations may be revised, for example if macroeconomic conditions change, and the projected return, projected gross yield and the projected bad debt rate may be adjusted to reflect this.
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