Funding Circle “on track” to meet expectations
There has been some encouraging news for investors in peer-to-peer lender Funding Circle with the firm reporting that its loans under management hit a record £3.7bn in the past three months. The figure is up by almost a third on the same period last year.
The value of the loans it processed year-to-date (originations) rose to £1.8bn, up from £1.6bn compared to the same period last year. However, the value of the loans it processed in Q3 2019 fell 0.5 per cent to £561m, from £565m in Q3 2018.
The lender’s operational overview said projected annualised returns for 2019 continue to show an improvement over recent years and that its performance was on track to meet market expectations for 2019.
Samir Desai, Funding Circle CEO and co-founder, said: “In the third quarter, loans under management reached £3.7bn and projected returns for 2019 continued to show an improvement over recent years. 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.”
Funding Circle’s share price jumped from 103p to 120p on the news. However, the shares were worth as much as 410p back in March.
Which? reported earlier this month that Funding Circle investors were waiting an average of three months – but some much longer – to get their money out of the peer-to-peer lending platform. In order to access your money, the loans you have made must be sold to another investor.