Thursday 18 April 2019 7:42 am

Peer-to-peer lender Funding Circle's loans under management soar to record highs

Peer-to-peer lending platform Funding Circle saw loans under management soar to record highs in the first three months of this year, the firm announced today.

Loans under management grew 44 per cent to £3.4bn compared to £2.3bn in the first quarter of the previous year, and revenue growth soared by 40 per cent.

Read more: Funding Circle shares fall as it plans to wind down SME fund

The firm reported that loan originations were up 23 per cent from £525m in the first quarter of 2018 to £644m between January and March this year.

Funding Circle co-founder and chief executive Samire Desai 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 £3.4bn.

“We continue to implement our strategy of diversifying funding sources with a new commitment from the European Investment Bank, as well as launching two new institutional investor products.”

Read more: Funding Circle shares rise despite widening losses on IPO costs

During the quarter the company announced it would launch two new institutional investor products this year, including private direct lending funds in Europe, and ABS bond products in the US and UK.

Yesterday, the European Investment Bank agreed to lend €100m over the next two years to small businesses in Germany and the Netherlands through Funding Circle.