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Yirendai Reports Second Quarter 2019 Financial Results
Sep 03,2019

BEIJING, Sept. 03, 2019 (GLOBE NEWSWIRE) -- Yirendai Ltd. (NYSE: YRD) (“Yirendai” or the “Company”), a leading fintech company in China, today announced its unaudited financial results for the second quarter ended June 30, 2019.

Second Quarter 2019 Operational Highlights
Wealth Management—Yiren Wealth

  • Cumulative number of investors served reached 2,185,513, representing an increase of 1% from 2,159,490 in the first quarter of 2019 and compared to 1,974,984 in the second quarter of 2018.
     
  • Number of active investors in the second quarter of 2019 was 671,957, representing a decrease of 13% from 768,514 in the first quarter of 2019 and compared to 928,251 in the second quarter of 2018.
     
  • Total assets under management (“AUM”) for Yiren Wealth was RMB 43,604.2 million (US$ 6,351.7 million) as of June 30, 2019, representing a decrease of 7% from RMB 46,663.1 million as of March 31, 2019. Average AUM per investor reached RMB 149,480(US$ 21,774) as of June 30, 2019, representing an increase of 7% from RMB 139,473 as of March 31, 2019.
     
  • AUM of non-P2P products amounted to RMB 354.3 million (US$ 51.6 million) in the second quarter of 2019, representing a decrease of 23% from RMB 457.7 million in the first quarter of 2019 and compared to RMB 951.0 million in the second quarter of 2018. Non-P2P products include money market funds, mutual funds and insurance.

Consumer Credit—Yiren Credit

  • Total loan originations in the second quarter of 2019 reached RMB 9.7 billion (US$1.4 billion), representing a decrease of 12% from RMB 10.9 billion in the first quarter of 2019 and compared to RMB 18.2 billion in the second quarter of 2018.
     
  • Cumulative number of borrowers served reached 4,491,466, representing an increase of 2% from 4,404,812 in the first quarter of 2019 and compared to 4,027,254 in the second quarter of 2018.
     
  • Number of borrowers in the second quarter of 2019 was 135,246, representing a decrease of 10% from 149,715 in the first quarter of 2019 and compared to 267,628 in the second quarter of 2018.
     
  • The percentage of loan volume generated by repeat borrowers was 35.9% in the second quarter of 2019.
     
  • 52.5% of loan originations were generated online in the second quarter of 2019.
     
  • Remaining principal of performing loans reached RMB 58,071.3 million (US$8,459.0 million) as of June 30, 2019, representing a decrease of 8% from RMB 63,213.8 million as of March 31, 2019.

“We achieved another solid quarter of operation in both credit and wealth management business, in particular we gained strong momentum in working with our bank partners to diversify our funding source,” said Mr. Ning Tang, Chairman and Chief Executive Officer of Yirendai. “We are seeing strong demand from bank and institutional partners for our stable consumer loan assets, which demonstrated our industry leadership position and strong asset sourcing capabilities leveraging our online/offline network. Our technology enabling solution further strengthen our partnership with banks, we have successfully deployed our turn-key online lending solution to the Bank of Ningxia, which marks the first milestone of our fintech solution for financial institutions. On wealth management, as part of our business transition to an asset-allocation based online wealth management platform, Yiren Wealth launched a new brand and rolled out several new products including bank savings, insurance and target risk funds on our wealth management platforms. We also released the first asset allocation guide targeted at China’s mass affluent population. In the second half of 2019, we will continue to focus on diversifying our wealth management product portfolio, acquiring key talent as well as streamlining our operations to better serve our investors. On the regulation front, we have increased our registered capital to RMB 1 billion, to prepare ourselves for the potential upcoming regulatory trial program.”

“On credit performance and risk management, we saw slight volatilities in early delinquencies this quarter as a result of industry conditions and a declining loan balance,” said Mr. Huan Chen, Board of Director and Chief Risk Officer of Yirendai. “To improve our overall risk levels, we have been actively optimizing our product portfolio to reduce risk exposure and enhancing our risk data set to lower borrowers' over-indebteness risk. Our integration with institutional bank funding could provide further risk performance improvement as we connect to PBOC credit system directly.”

“This quarter, we continue to maintain stable loan originations volume as we prioritize risk management and quality of asset growth,” said Mr. Dennis Cong, Senior V.P. of Yirendai. “Diversifying our funding source continues to be a top priority this year and we are pleased to announce that we have obtained close to RMB 30 billion line of credit from our institutional funding partners, thus we expect a significant portion of our new loan origination volume to be from institutional funding towards the end of 2019. This quarter, we maintained a healthy operating efficiency and profitability despite low business volume, our balance sheet remained strong with approximately RMB 3.1 billion of cash and short-term liquidity.”

Second Quarter 2019 Financial Results

Total amount of loans facilitated in the second quarter of 2019 was RMB 9,673.8 million (US$1,409.2 million), compared to RMB 18,180.3 million in the same period last year. As of June 30, 2019, the total outstanding principal amount of the performing loans was RMB 58.1 billion (US$8.5 billion), decreased by 8% from RMB 63.2 billion as of March 31, 2019. 

Total net revenue in the second quarter of 2019 was RMB 2,216.6 million (US$322.9 million), compared to RMB 2,987.3 million in the same period last year. Revenue from Yiren Credit reached RMB 1,624.3 million (US$236.6 million), representing a decrease of 34% from RMB 2,455.7 million in the second quarter of 2018. Revenue from Yiren Wealth reached RMB 592.4 million (US$86.3 million), representing an increase of 11% from RMB 531.6 million in the second quarter of 2018.

Sales and marketing expenses in the second quarter of 2019 were RMB 1,208.6 million (US$176.1 million), compared to RMB 1,816.0 million in the same period last year. Sales and marketing expenses in the second quarter of 2019 accounted for 12.5% of the total amount of loans facilitated, as compared to 10.0% in the same period last year mainly due to a decrease in the amount of loans facilitated.  

Origination and servicing costs in the second quarter of 2019 were RMB 162.9 million (US$23.7 million), compared to RMB 307.5 million in the same period last year. Origination and servicing costs in the second quarter of 2019 accounted for 1.7% of the total amount of loans facilitated, compared to 1.7% in the same period last year.

General and administrative expenses in the second quarter of 2019 were RMB 175.5 million (US$25.6 million), compared to RMB 504.2 million in the same period last year. General and administrative expenses in the second quarter of 2019 accounted for 7.9% of the total net revenue, compared to 16.9% in the same period last year mainly due to an expense of RMB 200.0 million related to the quality assurance program in the second quarter of 2018.

Allowance for contract assets and receivables in the second quarter of 2019 were RMB 500.9 million (US$73.0 million), compared to RMB 275.7 million in the same period last year. The increase was mainly attributable to changes in future collectability estimates.

Income tax expense in the second quarter of 2019 was RMB 61.9 million (US$9.0 million).

Net income in the second quarter of 2019 was RMB 154.5 million (US$22.5 million), compared to RMB 193.8 million in the same period last year. 

Adjusted EBITDA (non-GAAP) in the second quarter of 2019 was RMB 239.9 million (US$35.0 million), compared to RMB 272.3 million in the same period last year. Adjusted EBITDA margin1 (non-GAAP) in the second quarter of 2019 was 10.8%, compared to 9.1% in the same period last year.

Basic income per ADS in the second quarter of 2019 was RMB 1.67(US$0.24), compared to RMB 2.11 in the same period last year.

Diluted income per ADS in the second quarter of 2019 was RMB 1.66(US$0.24), compared to RMB 2.09 in the same period last year.

Net cash used in operating activities in the second quarter of 2019 was RMB 331.8 million (US$48.3 million), compared to net cash used of RMB 1,905.3 million in the same period last year.

As of June 30, 2019, cash and cash equivalents was RMB 2,706.5 million (US$394.3 million), compared to RMB 2,519.4 million as of March 31, 2019. As of June 30, 2019, the balance of held-to-maturity investments was RMB 9.5 million (US$1.4 million), compared to RMB 312.8 million as of March 31, 2019. As of June 30, 2019, the balance of available-for-sale investments was RMB 387.5 million (US$56.4 million), compared to RMB 1,187.6 million as of March 31, 2019.

Delinquency rates. As of June 30, 2019, the delinquency rates for loans that are past due for 15-29 days, 30-59 days and 60-89 days were 1.1%, 1.8%, and 1.9%, respectively compared to 0.9%, 1.9%, and 1.7% as of March 31, 2019. The overall increase in delinquency rates was mainly due to the slower growth in loan volumes and volatile credit performance of the loans.

Cumulative M3+ net charge-off rates. As of June 30, 2019, the cumulative M3+ net charge-off rate for loans originated in 2016 was 9.2%, compared to 9.0% as of March 31, 2019. As of June 30, 2019, the cumulative M3+ net charge-off rate for loans originated in 2017 was 14.0%, compared to 12.7% as of March 31, 2019. As of June 30, 2019, the cumulative M3+ net charge-off rate for loans originated in 2018 was 8.7%, compared to 5.9% as of March 31, 2019. 

Management Change
Effective September 4, 2019, Mr. Dennis Cong, Co-CFO of Yirendai, will assume the role of Senior Vice President of Corporate Business Development and continue his responsibilities of new business development, capital markets and strategic planning. Ms. Jia Liu, Co-CFO of Yirendai will become the sole CFO of the Company.

Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses several non-GAAP financial measures, such as adjusted EBITDA and adjusted EBITDA margin as supplemental measures to review and assess operating performance. We believe these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and prospects and allow for greater visibility with respect to key metrics used by our management in our financial and operational decision-making. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The non-GAAP financial measures have limitations as analytical tools. Other companies, including peer companies in the industry, may calculate these non-GAAP measures differently, which may reduce their usefulness as a comparative measure. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our performance. See “Operating Highlights and Reconciliation of GAAP to Non-GAAP measures” at the end of this press release.

Currency Conversion
This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB 6.865 to US$1.00, the effective noon buying rate on June 28, 2019, as set forth in the H.10 statistical release of the Federal Reserve Board.

Conference Call
Yirendai's management will host an earnings conference call at 8:00 p.m. U.S. Eastern Time on September 3, 2019, (or 8:00 a.m. Beijing/Hong Kong Time on September 4, 2019).

Dial-in details for the earnings conference call are as follows:

International: +65 6713-5091
U.S. Toll Free: +1 866-519-4004
Hong Kong Toll Free: 800-906-601
China Toll Free: 400-620-8038
Conference ID: 4045996

A replay of the conference call may be accessed by phone at the following numbers until September 10, 2019:

International: +61 2-8199-0299
U.S. Toll Free: +1 646-254-3697
Replay Access Code: 4045996

Additionally, a live and archived webcast of the conference call will be available at ir.yirendai.com.

Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “target,” “confident” and similar statements. Such statements are based upon management’s current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yirendai’s control. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to Yirendai’s ability to attract and retain borrowers and investors on its marketplace, its ability to introduce new loan products and platform enhancements, its ability to compete effectively, PRC regulations and policies relating to the peer-to-peer lending service industry in China, general economic conditions in China, and Yirendai’s ability to meet the standards necessary to maintain listing of its ADSs on the NYSE or other stock exchange, including its ability to cure any non-compliance with the NYSE’s continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in Yirendai’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Yirendai does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

About Yirendai
Yirendai Ltd. (NYSE: YRD) is a leading fintech company in China connecting investors and individual borrowers. The Company provides an effective solution to address largely underserved investor and individual borrower demand in China through online and offline channels to efficiently match borrowers with investors and execute loan transactions. Yirendai deploys a proprietary risk management system, which enables the Company to effectively assess the creditworthiness of borrowers, appropriately price the risks associated with borrowers, and offer quality loan investment opportunities to investors. Yirendai’s marketplace provides borrowers with quick and convenient access to consumer credit at competitive prices and investors with easy and quick access to an alternative asset class with attractive returns. For more information, please visit ir.Yirendai.com.

For investor and media inquiries, please contact:
Yirendai
Investor Relations
Email: ir@Yirendai.com

1 Adjusted EBITDA margin is a non-GAAP financial measure calculated as adjusted EBITDA divided by total net revenue.

 
 
Unaudited Condensed Consolidated Statements of Operations
 (in thousands, except for share, per share and per ADS data, and percentages)
  For the Three Months Ended      For the Six Months Ended 
  June 30,
2018
  March 31,
2019
  June 30,
2019
  June 30,
2019
    June 30,
2018
  June 30,
2019
  June 30,
2019
  RMB
(Recast*)
  RMB
(Recast*)
  RMB   USD     RMB
(Recast*)
  RMB   USD
Net revenue:                            
Loan facilitation services 2,054,278     1,055,046     1,237,718     180,295       5,051,741     2,292,764     333,979  
Post-origination services 303,757     296,279     241,321     35,152       584,875     537,600     78,310  
Account management services 431,803     488,340     549,024     79,974       793,545     1,037,364     151,109  
Others 197,445     140,743     188,577     27,469       321,794     329,320     47,971  
Total net revenue 2,987,283     1,980,408     2,216,640     322,890       6,751,955     4,197,048     611,369  
Operating costs and expenses:                            
Sales and marketing 1,816,005     1,127,945     1,208,647     176,059       3,971,967     2,336,592     340,363  
Origination and servicing 307,524     172,123     162,945     23,736       572,137     335,068     48,808  
General and administrative 504,175     257,707     175,534     25,569       1,026,279     433,241     63,109  
Allowance for contract assets and receivables 275,706     191,104     500,861     72,959       510,707     691,965     100,796  
Total operating costs and expenses 2,903,410     1,748,879     2,047,987     298,323       6,081,090     3,796,866     553,076  
Other income/(expenses):                            
Interest income, net 21,314     23,875     25,213     3,673       49,648     49,088     7,150  
Fair value adjustments related to Consolidated ABFE 140,549     34,998     5,787     843       147,620     40,785     5,941  
Others, net (6,347 )   160,223     17,480     2,546       (6,923 )   177,703     25,886  
Total other income 155,516     219,096     48,480     7,062       190,345     267,576     38,977  
Income before provision for income taxes 239,389     450,625     217,133     31,629       861,210     667,758     97,270  
Share of results of equity investees (2,705 )   (4,957 )   (816 )   (119 )     (5,029 )   (5,773 )   (841 )
Income tax expense 42,916     76,534     61,856     9,010       126,495     138,390     20,159  
Net income 193,768     369,134     154,461     22,500       729,686     523,595     76,270  
                             
Weighted average number of ordinary shares outstanding, basic 183,410,702     185,126,457     184,608,337     184,608,337       183,378,858     184,865,964     184,865,964  
Basic income per share 1.0565     1.9940     0.8367     0.1219       3.9791     2.8323     0.4126  
Basic income per ADS 2.1130     3.9880     1.6734     0.2438       7.9582     5.6646     0.8252  
                             
Weighted average number of ordinary shares outstanding, diluted 185,638,122     186,578,885     186,667,233     186,667,233       185,695,053     186,621,626     186,621,626  
Diluted income per share 1.0438     1.9784     0.8275     0.1205       3.9295     2.8057     0.4087  
Diluted income per ADS 2.0876     3.9568     1.6550     0.2410       7.8590     5.6114     0.8174  
                             
Unaudited Condensed Consolidated Cash Flow Data                            
Net cash used in operating activities (1,905,334 )   (658,435 )   (331,829 )   (48,336 )     (2,722,370 )   (990,264 )   (144,248 )
Net cash provided by/ (used in) investing activities 469,124     (249,931 )   609,077     88,722       206,564     359,146     52,316  
Net cash (used in)/provided by financing activities (201,584 )   493,389     (73,385 )   (10,690 )     34,990     420,004     61,180  
Effect of foreign exchange rate changes 8,117     (2,196 )   1,532     223       (2,859 )   (664 )   (97 )
Net (decrease)/ increase in cash, cash equivalents and restricted cash (1,629,677 )   (417,173 )   205,395     29,919       (2,483,675 )   (211,778 )   (30,849 )
Cash, cash equivalents and restricted cash, beginning of period 3,626,324     3,034,484     2,617,311     381,254       4,480,322     3,034,484     442,022  
Cash, cash equivalents and restricted cash, end of period 1,996,647     2,617,311     2,822,706     411,173       1,996,647     2,822,706     411,173  
                             

 

Unaudited Condensed Consolidated Balance Sheets
 (in thousands)
    As of
    December 31,
 2018
  March 31,
2019
  June 30,
2019
  June 30,
2019
    RMB
(Recast*)
  RMB
(Recast*)
  RMB   USD
                 
Cash and cash equivalents   2,606,939     2,519,423     2,706,530     394,250  
Restricted cash   427,546     97,888     116,176     16,923  
Accounts receivable   40,326     70,297     27,212     3,963  
Contract assets, net   3,909,263     3,431,014     2,958,476     430,951  
Contract cost   145,460     143,323     141,480     20,609  
Prepaid expenses and other assets   2,552,319     1,221,074     1,142,757     166,460  
Loans at fair value   1,375,221     851,406     677,354     98,668  
Financing receivables   -     -     25,175     3,667  
Amounts due from related parties   1,361,805     270,626     1,791,515     260,964  
Held-to-maturity investments   329,597     312,768     9,542     1,390  
Available-for-sale investments   835,565     1,187,588     387,519     56,449  
Long term investments   217,636     167,428     143,047     20,837  
Property, equipment and software, net   266,002     239,822     230,078     33,515  
Deferred tax assets   184,136     156,322     149,269     21,744  
Right-of-use assets   -     389,299     398,154     57,998  
Total assets   14,251,815     11,058,278     10,904,284     1,588,388  
Accounts payable   307,046     53,667     54,158     7,889  
Amounts due to related parties   8,276,459     310,592     169,189     24,646  
Liabilities from quality assurance program and guarantee   9,950     8,384     6,539     953  
Deferred revenue   569,469     459,806     390,621     56,900  
Payable to investors at fair value   626,207     7,386     -     -  
Accrued expenses and other liabilities   2,193,576     2,154,786     2,265,288     329,976  
Refund liability   2,145,748     2,137,835     2,039,998     297,159  
Deferred tax liabilities   486,773     417,629     329,347     47,975  
Lease liabilities   -     348,176     341,364     49,725  
Contingent consideration   -     2,626,734     2,626,734     382,627  
Total liabilities   14,615,228     8,524,995     8,223,238     1,197,850  
Ordinary shares   77     77     77     11  
Shares to be issued   -     2,754,444     2,754,444     401,230  
Additional paid-in capital   1,293,968     1,081,499     1,106,153     161,129  
Treasury stock   (254 )   (5,694 )   (37,097 )   (5,404 )
Accumulated other comprehensive income   16,390     13,160     18,367     2,676  
Accumulated deficit   (1,673,594 )   (1,310,203 )   (1,160,898 )   (169,104 )
Total (deficit)/ equity   (363,413 )   2,533,283     2,681,046     390,538  
Total liabilities and equity   14,251,815     11,058,278     10,904,284     1,588,388  
                 

 

Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures
(in thousands, except for number of  borrowers, number of investors and percentages)
    For the Three Months Ended      For the Six Months Ended 
    June 30,
2018
  March 31, 2019   June 30,
2019
  June 30,
2019
    June 30,
2018
  June 30,
2019
  June 30,
2019
    RMB
(Recast*)
  RMB
(Recast*)
  RMB   USD     RMB
(Recast*)
  RMB   USD
Operating Highlights                              
Amount of investment   17,627,499     11,435,588     11,939,582     1,739,196       35,655,154     23,375,170     3,404,977  
AUM of investment   74,296,263     67,251,285     64,476,635     9,392,081       74,296,263     64,476,635     9,392,081  
Number of investors   314,507     200,780     157,973     157,973       529,962     320,054     320,054  
Amount of loans facilitated   18,180,272     10,934,923     9,673,818     1,409,150       37,951,340     20,608,740     3,002,002  
Number of borrowers   267,628     149,715     135,246     135,246       553,938     280,634     280,634  
Remaining principal of performing loans   76,479,235     63,213,843     58,071,303     8,459,039       76,479,235     58,071,303     8,459,039  
                               
Segment Information                              
Wealth management:                              
Revenue   531,611     521,434     592,378     86,290       954,601     1,113,812     162,245  
Sales and marketing expenses   249,748     143,904     213,168     31,051       948,681     357,072     52,013  
                               
Consumer credit:                              
Revenue   2,455,672     1,458,974     1,624,262     236,600       5,797,354     3,083,236     449,124  
Sales and marketing expenses   1,566,257     984,041     995,479     145,008       3,023,286     1,979,520     288,350  
                               
Reconciliation of Adjusted EBITDA                              
Net income   193,768     369,134     154,461     22,500       729,686     523,595     76,270  
Interest income, net   (21,314 )   (23,875 )   (25,213 )   (3,673 )     (49,648 )   (49,088 )   (7,150 )
Income tax expense   42,916     76,534     61,856     9,010       126,495     138,390     20,159  
Depreciation and amortization   37,144     32,502     31,112     4,532       75,397     63,614     9,266  
Share-based compensation   19,766     14,699     17,732     2,583       39,299     32,431     4,724  
Adjusted EBITDA   272,280     468,994     239,948     34,952       921,229     708,942     103,269  
Adjusted EBITDA margin   9.1 %   23.7 %   10.8 %   10.8 %     13.6 %   16.9 %   16.9 %
                               
* Prior period financials have been recasted to reflect the acquisition from Creditease under common control.         
                               

 

Delinquency Rates
    Delinquent for
    15-29 days   30-59 days   60-89 days
All Loans            
December 31, 2015   0.7%   1.2%   0.9%
December 31, 2016   0.6%   0.9%   0.8%
December 31, 2017   0.8%   1.0%   0.8%
December 31, 2018   1.0%   1.8%   1.7%
March 31, 2019   0.9%   1.9%   1.7%
June 30, 2019   1.1%   1.8%   1.9%
             
Online Channels            
December 31, 2015   0.5%   0.8%   0.6%
December 31, 2016   0.5%   0.9%   0.8%
December 31, 2017   1.1%   1.1%   0.9%
December 31, 2018   1.2%   2.3%   2.2%
March 31, 2019   1.2%   2.6%   2.4%
June 30, 2019   1.4%   2.2%   2.6%
             
Offline Channels            
December 31, 2015   0.7%   1.2%   1.0%
December 31, 2016   0.6%   0.9%   0.8%
December 31, 2017   0.6%   0.9%   0.7%
December 31, 2018   0.9%   1.6%   1.5%
March 31, 2019   0.8%   1.6%   1.5%
June 30, 2019   1.0%   1.6%   1.7%
             

 

Net Charge-Off Rate for Upgraded Risk Grid
Loan Issued
Period
  Customer
Grade
  Amount of Loans Facilitated
During the Period
  Accumulated M3+ Net Charge-Off
as of June 30, 2019
  Total Net Charge-Off Rate
as of June 30, 2019
        (in RMB thousands)   (in RMB thousands)    
2015   I   4,894,936   204,257   4.2 %
    II   17,502,449   490,328   2.8 %
    III   11,272,838   715,240   6.3 %
    IV   11,283,656   1,362,071   12.1 %
    V   11,199,563   1,725,698   15.4 %
    Total   56,153,444   4,497,593   8.0 %
2016   I   5,858,473   229,407   3.9 %
    II   12,781,372   516,174   4.0 %
    III   9,951,614   734,157   7.4 %
    IV   8,652,543   911,659   10.5 %
    V   16,981,990   2,582,818   15.2 %
    Total   54,225,993   4,974,216   9.2 %
2017   I   11,223,886   626,827   5.6 %
    II   12,270,230   1,369,026   11.2 %
    III   13,837,922   2,015,072   14.6 %
    IV   13,663,558   2,186,320   16.0 %
    V   19,680,365   3,720,647   18.9 %
    Total   70,675,961   9,917,892   14.0 %
2018   I   9,604,220   361,355   3.8 %
    II   14,656,703   961,532   6.6 %
    III   13,903,094   1,190,224   8.6 %
    IV   13,812,989   1,511,587   10.9 %
    V   11,326,230   1,513,789   13.4 %
    Total   63,303,236   5,538,487   8.7 %
2019Q1   I   1,834,364   3,213   0.2 %
    II   3,309,340   11,289   0.3 %
    III   2,617,979   11,815   0.5 %
    IV   1,866,640   8,316   0.4 %
    V   1,306,600   6,983   0.5 %
    Total   10,934,923   41,617   0.4 %
                 

 

M3+ Net Charge-Off Rate
Loan Issued
Period
  Month on Book
    4   7   10   13   16   19   22   25   28   31   34  
2015Q1   0.8%   2.0%   3.5%   4.7%   5.8%   6.5%   7.1%   7.5%   7.7%   7.8%   7.8%  
2015Q2   0.8%   2.3%   3.8%   5.2%   6.4%   7.3%   8.0%   8.3%   8.5%   8.7%   8.8%  
2015Q3   0.4%   1.6%   3.1%   4.4%   5.6%   6.5%   7.2%   7.6%   7.9%   8.2%   8.4%  
2015Q4   0.4%   1.6%   3.1%   4.4%   5.5%   6.3%   6.9%   7.4%   7.9%   8.3%   8.6%  
2016Q1   0.3%   1.2%   2.5%   3.6%   4.5%   5.2%   5.8%   6.5%   7.0%   7.4%   7.6%  
2016Q2   0.4%   1.6%   3.1%   4.3%   5.2%   6.0%   6.8%   7.6%   8.1%   8.4%   8.7%  
2016Q3   0.3%   1.6%   3.1%   4.3%   5.4%   6.6%   7.8%   8.6%   9.2%   9.5%    
2016Q4   0.2%   1.5%   2.9%   4.4%   5.9%   7.4%   8.4%   9.3%   10.0%      
2017Q1   0.3%   1.5%   3.2%   5.1%   7.1%   8.6%   9.8%   10.8%        
2017Q2   1.1%   2.9%   5.6%   8.4%   10.4%   12.1%   13.5%          
2017Q3   0.3%   2.9%   6.3%   9.1%   11.6%   13.6%            
2017Q4   0.5%   3.8%   7.2%   10.5%   13.2%              
2018Q1   0.4%   3.0%   6.6%   10.1%                
2018Q2   0.5%   3.6%   7.4%                  
2018Q3   0.3%   2.9%                    
2018Q4   0.3%                      
                         

 

 

Source: Yirendai Ltd.