(Reuters) - LendingClub Corp (LC.N) reported a smaller-than-expected quarterly loss on Tuesday, as the online lender originated more loans through its platform and charged higher transaction fees, sending its shares up about 10% in extended trading.
The company has been working to turn itself around by cutting costs and enhancing its marketing tactics after loan originations took a hit following a May 2016 probe into malpractices, which led to the ouster of then-CEO and founder Renaud Laplanche.
Loan originations rose 11% to $3.13 billion in the second quarter and transaction fees about 12% to $152.2 million, lifting the company’s overall revenue by about 8% to $190.8 million.
The company, operating an online platform that connects consumers looking for loans with individuals or institutional investors such as banks, said its loan servicing portfolio grew 18% to $14.80 billion.
LendingClub said it now expects smaller loss for the year than it had previously forecast. Adjusted net loss is expected to be between $5 million and $20 million, from $9 million to $29 million.
The company expects to swing to an adjusted profit in the third quarter.
Earlier on Tuesday, LendingClub’s larger rival Greensky Inc (GSKY.O) reported lower-than-expected second-quarter revenue and said it intends to explore options.
LendingClub's net loss narrowed to $10.7 million, or 12 cents per share, in the quarter ended June 30, from $60.9 million, or 72 cents per share, a year earlier. (reut.rs/2YH452D)
Excluding one-time items, the San Francisco-based company lost 1 cent per share, while analysts on average had expected a loss of 8 cents, according to IBES data from Refinitiv.
Reporting by C Nivedita in Bengaluru; Editing by Arun Koyyur and Shinjini Ganguli