Shanghai-based fintech firm's profit jump
New York-listed FinVolution Group reported a net profit jump of 20.6 percent in the fourth quarter of 2020, thanks to a booming user base and loan volume, the Shanghai-based online finance platform said on Thursday.
The firm expected loan volume may double in 2021 with a rebound in consumption and economic recovery following the pandemic.
Net profit in the fourth quarter was 497.3 million yuan (US$77 million) while revenue reached 1.85 billion yuan, a growth of 50.3 percent from a year ago.
“In 2021, we are well positioned to capture the immense potential in China's consumer and micro enterprise markets as well as Southeast Asia’s fintech markets,” said Zhang Feng, chief executive of FinVolution, which has seen strong loan recovery and growth since the third quarter.
FinVolution’s loan origination volume is expected to between 100 and 120 billion yuan this year, compared with 64.1 billion yuan in 2020.
During the COVID-19 outbreak, FinVolution strengthened risk management for an improvement in delinquency rates among newly facilitated loans, with risk management and various fintech technologies and investment.
In 2020, the Shanghai-based company invested 370 million yuan in research and development. The company’s international expansion was progressing rapidly with the Indonesian market leading the growth last year. It said it would continue to expand in other parts of Southeast Asia in 2021.