Funding Circle Holdings plc (LON:FCH), the leading small and medium enterprise loans platform in the UK, US, Germany and the Netherlands, today announces updates to its statistics pages for the three months ending 31 March 2019 (the “Quarter”) and selected highlights from the Quarter.
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 £3.4 billion, up 44% compared to the same period last year. Total originations of £644 million vs £525 million in Q1 2018, up 23%
· 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 Europe and the UK, and ABS bond products to be launched in the US and UK
· On 17 April, the European Investment Bank agreed to lend €100 million over the next two years to small businesses in Germany and the Netherlands
· On 10 April, Pollen Street Capital completed a securitisation of UK loans originated on the Funding Circle platform. The £187 million portfolio was rated by three rating agencies, with its senior bond rated Aa3 / A (high) / AA- by Moody’s, DBRS and Kroll respectively
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
· UK: 2012-2016 performance remains in line with previous projections. Loans originated in 2017 and 2018 are now projected to deliver net returns of 4.1-5.1% and 4.5-5.5%. The Company tightened higher risk band lending in the UK during Q1 2019 and is targeting 2019 projected net returns of 5.0-7.0%
· 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%
· Germany and Netherlands: 2014-2016 performance remains in line with previous projections. Loan performance in 2017 and 2018 continues to improve, and the Company is targeting 2019 projected net returns of 5.5-8.5%
Samir Desai CBE, Funding Circle 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 £3.4 billion. 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.”
