Funding Circle Holdings has reported full year revenue growth of 55% (excluding property), exceeding the 50% guidance outlined at its IPO.
The SME loans platform in the UK, US, Germany and the Netherlands, has published a training update for Q4 2018.
Loans under Management (excluding property) were £3.1 billion as at 31 December 2018, up 55% compared to the same period last year and also exceeding IPO guidance.
Total originations totalled £2.3 billion in the year to 31 December 2018, up 40%. It also saw record originations (excluding property) of £683 million for Q4 2018 vs £522 million in Q4 2017, up 31%.
Meanwhile, revenue growth exceeded origination growth in H2 2018, due to policy changes for existing borrowers in the US which reduced overall originations, but had no impact on revenue.
Loans originated in H2 2018 for the UK are expected to return 5.5-6.5%. The expectation of lower performance for 2016/2017 remains as a result of the weaker consumer credit environment, which has impacted some loans in higher risk bands. In response, the company adjusted its risk models in H2 2018 – the total amount of SME loans originated in H2 2018 represents almost the total originations for the UK in 2017.
Samir Desai CEO and co-founder, said: “Funding Circle delivered a strong end to 2018 which resulted in exceeding our revenue and Loans under Management guidance for the year. We were pleased to announce a number of new institutional investor transactions in Q4, which is further validation of the attractive risk-adjusted returns generated on the Funding Circle platform.
“We enter 2019 with continuing confidence and remain focused on delivering our growth strategy set out at IPO.”
