PPDai doubles share repurchase program to US$120m

PPDAI Group Inc, a New York-listed online peer-to-peer lending platform, said it will double its share buyback program to US$120 million, after posting a net profit of over 600 million yuan (US$89 million) in the second quarter, Shanghai Daily learned today.

The expansion of the US$60 million share repurchase program is meant to improve investor confidence, the lending platform said.

Shanghai-based PPDai posted a net profit of 607 million yuan in the second quarter while revenue reached 1.04 billion yuan, slightly in line with that a year ago.

Different from other platforms, PPDai offers services for smaller clients including many individual borrowers.

"The industry has lately been going through significant change. We believe a strengthened regulatory framework and industry consolidation will benefit the industry's long-term growth and sustainability," Zhang Jun, chairman and chief executive of PPDai, said in a statement.

The industry has suffered a wave of closures amid a liquidity crunch and tightened government regulations. Amid outcry from people who have lost money on such platforms, the government has banned new players from entering the industry, market insiders said.