Online finance platform posts impressive profit growth
FinVolution, a Shanghai-based online finance platform, today posted a net profit growth of 41 percent in the first quarter, thanks to a larger user base and average loan size from borrowers.
The rebounding economic environment in China and great potential for digital technology applications in Southeast Asia are catalysts for future business, said New York-listed FinVolution.
The company's first-quarter net profit was 592.8 million yuan (US$90.5 million), while revenue reached 2.11 billion yuan.
During the quarter, FinVolution attracted more than 1 million new borrowers, 169.4 percent growth from a year ago. Loans facilitated for new borrowers hit 5.6 billion yuan, an increase of 250 percent year on year.
China's finance market, especially services for consumer and micro enterprises, has begun to rebound now that COVID-19 is under control in the country. Meanwhile, Southeast Asia's booming digital finance market will "unlock tremendous value," said Zhang Feng, chief executive of FinVolution.
During the COVID-19 outbreak, FinVolution strengthened risk management, leading to an improvement in delinquency rates among newly facilitated loans.
In the first quarter, the company invested 94 million yuan in research, 7.1 percent more than a year ago. It has also developed its own online data management and analysis tool.
The value of the company's shares has nearly tripled since the beginning of the year.