Quicken Loans parent swings to profit in first results since IPO

FILE PHOTO: A banner celebrating Rocket Companies Inc., the parent company of U.S. mortgage lender Quicken Loans, IPO is seen on the New York Stock Exchange (NYSE) in New York City, U.S., August 6, 2020. REUTERS/Brendan McDermid

(Reuters) - Rocket Companies Inc RKT.N, the parent of mortgage lender Quicken Loans, swung to a quarterly profit in its first results as a public company on Wednesday, driven by higher borrowings on the back of lower interest rates.

Shares of the company were last down 5% in volatile trading after the bell. They have gained 45.5% since their debut on Aug. 6.

The company, founded by billionaire Dan Gilbert, raised $1.8 billion in its downsized initial public offering, giving it a valuation of $36 billion.

Rocket’s quarterly net revenue rose to $5.04 billion from $937.5 million in the second quarter ended June 30.

Its closed loan origination volume more than doubled to $72.32 billion.

The company’s net income was $3.5 billion in the quarter, compared to a loss of $54 million a year earlier.

Reporting by Niket Nishant and Neha Malara in Bengaluru; Editing by Sriraj Kalluvila and Maju Samuel