Online lender upbeat despite regulations

Source: Xinhua | 2018-11-22

SHANGHAI-based online lending platform PPDai posted a net profit increase of 20 percent in the third quarter, despite a strict regulatory environment, the New York-listed firm said yesterday.

Its net profit jumped 20 percent year on year to hit 649.5 million yuan (US$94.1 million) in the quarter. The revenue was 1.1 billion yuan in the period, an 11.7 percent drop from a year ago.

But PPDai’s revenue was 5.4 percent higher than the previous quarter, representing a warming market and improved operational efficiency, the company said.

Zhang Jun, the company’s founder and co-CEO, expected the industry will experience significant change and consolidation. It will increase investment in AI and big data to improve business and hedge risks.

Since 2017, China’s online lending market has faced strict regulation as well as decreased revenue and borrowing after a number of high-profile fraud cases.