May 7, 2019 / 8:21 PM / 3 months ago

LendingClub beats profit estimates on higher transaction fees

FILE PHOTO: A Lending Club banner hangs on the facade of the the New York Stock Exchange in New York, New York, United States December 11, 2014. REUTERS/Brendan McDermid/File Photo

(Reuters) - LendingClub Corp beat quarterly profit estimates on Tuesday, boosted by a rise in loan originations that helped the online-loan marketplace earn more in fees from processing transactions.

Transaction fees jumped 22 percent to $135.4 million in the quarter, lifting the company’s overall revenue by 15 percent to $174.4 million.

LendingClub has been working to restore investor confidence after an internal probe in May 2016 into loan malpractices led to the ouster of then-CEO and founder Renaud Laplanche and a drop in loan originations.

Loan originations in the quarter rose 18 percent to $2.73 billion.

For the second quarter, the company expects net revenue between $185 million and $195 million, with the high-end slightly below the average analyst estimate of $196.7 million, according to IBES data from Refinitiv.

LendingClub forecast a loss between $6 million and $11 million, below Wall Street estimates of a $3.7 million loss.

The company's net loss narrowed to $19.9 million, or 5 cents per share, in the first quarter ended March 31, from $31.2 million, or 7 cents per share, a year earlier reut.rs/2H5Bf12.

Excluding one-time items, LendingClub posted a surprise profit of 2 cents per share, while analysts had expected a loss of 3 cents per share.

Reporting by Bharath Manjesh in Bengaluru; Editing by Anil D'Silva and Shinjini Ganguli

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