Funding Circle shares jump after platform reports loan growth
Shares in Funding Circle rose over 10 per cent this morning after the peer-to-peer lending platform reported strong loan growth.
In a trading update released today, Funding Circle said its loans under management had increased 31 per cent year-on-year in the third quarter to £3.7bn.
Read more: Funding Circle investors face four month wait to withdraw cash
The number of new loans arranged by the platform jumped nine per cent compared to the same period last year, reaching £1.8bn.
Funding Circle said its full-year guidance for 2019 is unchanged, and its performance is on track to meet market expectations. Shares were up 10.10 per cent to 113.4p by mid-morning.
The platform, which has around 80,000 retail investors, arranges loans for small and medium-sized businesses by linking them with retail and institutional investors. It has organised loans for around 72,000 firms since 2010.
Founder and chief executive Samir Desai said: “In what remains an uncertain economic environment we continue to manage the business prudently, which we are confident is the right course of action for the long-term growth and development of our business.”
Read more: Funding Circle shares dive as it halves revenue growth target
Shares in the lending platform had crashed 20 per cent in July after it halved its revenue growth predictions, warning that an “uncertain economic outlook” was denting demand for loans.
Last month it emerged that investors were having to wait over 16 weeks before they could sell their loans on the secondary market. Funding Circle said it was conducting an internal review and “exploring a range of options” to tackle the issue.
Main image credit: Funding Circle