Loan club: Loan arrangements drop 90% during COVID-19
The market lender says the decline is in line with expectations, with investor demand for loans showing the first signs of recovery.
Image Source: Loan Club
Lending Club recorded $ 325.8 million in loan origination in the second quarter of 2020, down 90% year-on-year.
The lending giant in the market, like many other lenders around the world, has been deeply affected by the spread of the coronavirus and the lockdowns that have followed and the uncertain economic environment.
He says that during the period he took “decisive steps” to reduce spending on cash and preserve liquidity, but that ultimately lending declined dramatically, affecting income.
Loan Club recorded a net loss for the quarter of $ 78.5 million due to lower fixtures, but stressed that this was in line with our expectations. Net sales were $ 43.9 million, down 77% year-over-year.
Loan Club CEO Scott Sanborn said the company was still on track to acquire Radius Bank in a “tough environment”.
“We are satisfied with our ability to maintain strong levels of liquidity, are encouraged by the payment behavior of our members and the resilience of the loan portfolio and remain focused on the acquisition of Radius Bank,” he said. .
As of June 30, 2020, Loan Club reported having net cash of $ 564.1 million, up from $ 690.7 million as of June 30, 2019.