Yiren Digital Reports Third Quarter 2020 Financial Results

Rhea-AI Summary

Yiren Digital Ltd. (NYSE: YRD) reported its unaudited Q3 2020 financial results, revealing a net revenue of RMB 1.0 billion (US$ 150.6 million), a 36% increase from the previous quarter. The wealth management segment showed strong growth with AUA up 71.4% quarterly to RMB 4.3 billion and a 110.1% rise in sales volume. However, total loan originations decreased by 69% year-over-year to RMB 3.2 billion. The company achieved profitability for the quarter, with net income at RMB 79.8 million (US$ 11.8 million), though this was down from RMB 228.0 million in Q3 2019. The board welcomed Mr. Dennis Cong and bid farewell to Mr. Huan Chen.

Positive

• Net revenue increased by 36% to RMB 1.0 billion from Q2 2020.
• Wealth management revenue rose significantly with AUA increasing by 71.4% to RMB 4.3 billion.
• Sales volume of wealth management products grew by 110.1% quarter-over-quarter.
• Achieved profitability with net income of RMB 79.8 million.

Negative

• Total loan originations decreased by 69% year-over-year to RMB 3.2 billion.
• Yiren Credit revenue fell by 51.1% compared to Q3 2019.
• Outstanding principal balance of performing loans decreased by 16.3% from Q2 2020.

BEIJING, Nov. 26, 2020 /PRNewswire/ -- Yiren Digital Ltd. (NYSE: YRD) ("Yiren Digital" or the "Company"), a leading fintech company in China, today announced its unaudited financial results for the third quarter ended September 30, 2020.

Third Quarter 2020 Operational Highlights

Wealth Management—Yiren Wealth

• Cumulative number of investors served reached 2,283,828 as of September 30, 2020, representing an increase of 2.7% from 2,223,250 as of June 30, 2020 and compared to 2,200,223 as of September 30, 2019.
• Number of active wealth management investors^[1] was 76,707 as of September 30, 2020, representing an increase of 152.4% from 30,392 as of June 30, 2020, and compared to 12,235 as of September 30, 2019.
• Total assets under administration ("AUA") for wealth management products^[2] on Yiren Wealth was RMB 4,334.2 million (US$ 638.4 million) as of September 30, 2020, representing an increase of 71.4% from 2,528.6 million as of June 30, 2020, and compared to RMB 626.2 million as of September 30, 2019.
• Sales volume of wealth management products amounted to RMB 4,593.3 million (US$ 676.5 million) in the third quarter of 2020, representing an increase of 110.1% from RMB 2,186.2 million in the second quarter of 2020 and compared to RMB 767.2 million in the same period of 2019.

Consumer Credit—Yiren Credit

• Total loan originations in the third quarter of 2020 reached RMB 3.2 billion (US$ 0.5 billion), representing an increase of 33.5% from RMB 2.4 billion in the second quarter of 2020 and compared to RMB 10.5 billion in the third quarter of 2019.
• Cumulative number of borrowers served reached 5,060,824 as of September 30, 2020, representing an increase of 2.9% from 4,917,635 as of June 30, 2020 and compared to 4,593,590 as of September 30, 2019.
• Number of borrowers served in the third quarter of 2020 was 143,238 representing an increase of 33.2% from 107,568 in the second quarter of 2020 and compared to 150,280 in the third quarter of 2019.
• 24.4% of loan originations were generated online in the third quarter of 2020.
• Total outstanding principal balance of performing loans reached RMB28,007.2 million (US$ 4,125.0 million) as of September 30, 2020, representing a decrease of 16.3% from RMB33,454.4 million as of June 30, 2020.

[1] Active wealth management investors refer to those who hold an investment in one or more of the wealth management products the Company source from financial institutions during the quarter.

[2] Wealth management products include the products the Company source from financial institutions, which do not include any of our legacy P2P loans.

"We are very pleased to deliver a solid quarter, and we continue to make progress in our business transitions and strategic repositioning as we drive our online wealth management business into scale and ramp up our new credit-tech product offerings. We have achieved profitability and meaningful growth on both our wealth management and credit-tech business lines. With the large growing market opportunities in both our wealth management and credit businesses, we believe Yiren Digital is well positioned as China's leading digital platform providing comprehensive personal financial services." said Mr. Ning Tang, Chairman and Chief Executive Officer of Yiren Digital.

"For our wealth management business, we are seeing promising momentum in wealth management products and services and the demand remains strong. As of end of September, total AUA of wealth management products increased by 71% quarterly to RMB 4.3 billion, and total sales volume of wealth management products increased by 110% quarter-over-quarter to RMB 4.6 billion. New investors of wealth management products on Yiren Wealth in this quarter stood over 58,200, representing a 255% growth compared to last quarter."

"On our credit-tech business, we continue to execute our transition plan and drive our sales volume growth. Our new products continue to show strong growth as we shift towards small revolving loans and auto secured loans. For the small revolving loans, we have seen a quarterly increase of close to 100%, accounting for 19% of the total loan volume of this quarter. Meanwhile, auto secured loans grew 76% compared to the last quarter and took almost half of the total sales volume. "

"We are delighted to see continue growth in our wealth management business and loan originations and reached profitability for the quarter, as we continue to execute on our business plan," said Ms. Na Mei, Chief Financial Officer of Yiren Digital. "Total net revenue reached RMB 1.0 billion in third quarter, representing an increase of 36% from previous quarter due to growth in both loan and wealth management business. In particular, our revenue generated from wealth management products is becoming a significant portion of total net revenue at RMB 124 million up from RMB 22 million from prior quarter. On the balance sheet side, our cash position remains strong with RMB 3.3 billion of cash and short-term investments as of September 30, 2020. "

Third Quarter 2020 Financial Results

Total amount of loans facilitated in the third quarter of 2020 was RMB 3,207.0million (US$472.3million), compared to RMB 10,496.3 million in the same period last year. As of September 30, 2020, the total outstanding principal amount of the performing loans was RMB 28.0 billion (US$4.1 billion), decreased by 16.3% from RMB 33.5 billion as of June 30, 2020.

Total net revenue in the third quarter of 2020 was RMB 1,022.8 million (US$ 150.6 million), compared to RMB 2,056.1 million in the same period last year. Revenue from Yiren Credit reached RMB 741.7 million (US$ 109.2 million), representing a decrease of 51.1% from RMB 1,515.6 million in the third quarter of 2019. Revenue from Yiren Wealth reached RMB 281.1 million (US$ 41.4 million), representing a decrease of 48.0% from RMB 540.6 million in the third quarter of 2019.

Sales and marketing expenses in the third quarter of 2020 were RMB 485.1 million (US$71.4 million), compared to RMB 1,160.4 million in the same period last year. Sales and marketing expenses in the third quarter of 2020 accounted for 15.1% of the total amount of loans facilitated, as compared to 11.1% in the same period last year mainly due to the decline of loan volume.

Origination, servicing and other operating costs in the third quarter of 2020 were RMB 239.7 million (US$35.3 million), compared to RMB 156.1 million in the same period last year. Origination and servicing costs in the third quarter of 2020 accounted for 7.5% of the total amount of loans facilitated, compared to 1.5% in the same period last year due to the decline of loan volume.

General and administrative expenses in the third quarter of 2020 were RMB 159.7 million (US$ 23.5 million), compared to RMB 168.1 million in the same period last year. General and administrative expenses in the third quarter of 2020 accounted for 15.6% of the total net revenue, compared to 8.2% in the same period last year.

Allowance for contract assets and receivables in the third quarter of 2020 were RMB 25.0 million (US$ 3.7 million), compared to RMB 344.7 million in the same period last year.

Income tax expense in the third quarter of 2020 was RMB 16.4 million (US$ 2.4 million).

Net income in the third quarter of 2020 was RMB 79.8 million (US$ 11.8 million), compared to net income of RMB 228.0 million in the same period last year. 

Adjusted EBITDA^[3] (non-GAAP) in the third quarter of 2020 was net income of RMB 117.5 million (US$ 17.3 million), compared to net income of RMB 274.2 million in the same period last year.

Basic income per ADS in the third quarter of 2020 was net income of RMB 0.9 (US$ 0.1), compared to a basic income per ADS of RMB 2.5 in the same period last year.

Diluted income per ADS in the third quarter of 2020 was net income of RMB 0.9 (US$ 0.1), compared to a diluted income per ADS of RMB 2.4 in the same period last year.

Net cash generated from operating activities in the third quarter of 2020 was RMB 3.1 million (US$0.5 million), compared to net cash generated from operating activities of RMB 808.1 million in the same period last year.

Net cash used in investing activities in the third quarter of 2020 was RMB 99.5 million (US$14.6 million), compared to net cash used in investing activities of RMB 78.1 million in the same period last year.

As of September 30, 2020, cash and cash equivalents was RMB 2,836.2 million (US$ 417.7 million), compared to RMB 2,935.5 million as of June 30, 2020. As of September 30, 2020, the balance of held-to-maturity investments was RMB 2.3 million (US$ 0.3 million), compared to RMB 4.1 million as of June 30, 2020. As of September 30, 2020, the balance of available-for-sale investments was RMB 511.3 million (US$ 75.3 million), compared to RMB 513.0 million as of June 30, 2020.

Delinquency rates. As of September 30, 2020, the delinquency rates for loans that are past due for 15-29 days, 30-59 days and 60-89 days were 1.1%, 1.7%, and 1.6%, respectively compared to 1.4%, 2.0%, and 2.1%, as of June 30, 2020. 

Cumulative M3+ net charge-off rates. As of September 30, 2020, the cumulative M3+ net charge-off rate for loans originated in 2017 was 17.0%, compared to 16.7% as of June 30, 2020. As September 30, 2020, the cumulative M3+ net charge-off rate for loans originated in 2018 was 18.3%, compared to 17.6% as of June 30, 2020. As of September 30, 2020, the cumulative M3+ net charge-off rate for loans originated in 2019 was 11.9%, compared to 9.4% as of June 30, 2020.

[3] "Adjusted EBITDA" is a non-GAAP financial measure. For more information on this non-GAAP financial measure, please see the section of "Operating Highlights and Reconciliations of GAAP to Non-GAAP Measures" and the table captioned "Reconciliations of Adjusted EBITDA" set forth at the end of this press release.

Board Composition Change

The Board of Directors of the Company (the "Board") has appointed Mr. Dennis Cong as a member of the Board effective November 27, 2020. At the same time, Mr. Huan Chen has retired from his position on the Board effective today after having served as a Director of the Company since 2015.

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 6.7896 to US$1.00, the effective noon buying rate on September 30, 2020, as set forth in the H.10 statistical release of the Federal Reserve Board.

Conference Call

Yiren Digital's management will host an earnings conference call at 7:00 p.m. U.S. Eastern Time on November 26, 2020 (or 8:00 a.m. Beijing/Hong Kong Time on November 27, 2020).

Participants who wish to join the call should register online in advance of the conference at:

http://apac.directeventreg.com/registration/event/5509629

Please note the Conference ID number of 5509629.

Once registration is completed, participants will receive the dial-in information for the conference call, an event passcode, and a unique registrant ID number. 

Participants joining the conference call should dial-in at least 10 minutes before the scheduled start time.

A replay of the conference call may be accessed by phone at the following numbers until December 4, 2020:

International	+61 2-8199-0299
U.S.	+1 646-254-3697
Replay Access Code:	5509629

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 Yiren Digital'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 Yiren Digital'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 Yiren Digital'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 Yiren Digital'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 Yiren Digital 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 Yiren Digital

Yiren Digital Ltd. (NYSE: YRD) is a leading fintech company in China, providing both credit and wealth management services. For its credit business, 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. Yiren Digital 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. Yiren Digital'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 its wealth management business, the Company targets China's mass affluent population and strives to provide customized wealth management services, with a combination of long-term and short-term targets as well as different types of investments, ranging from cash and fixed-income assets, to funds and insurance. For more information, please visit ir.Yirendai.com.

 

 

 

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 Nine Months Ended
	September 30, 2019		June 30, 2020		September 30, 2020		September 30, 2020			September 30, 2019		September 30, 2020		September 30, 2020
	RMB		RMB		RMB		USD			RMB		RMB		USD
Net revenue:
Loan facilitation services	1,286,923		171,084		406,413		59,858			3,579,687		936,038		137,865
Post-origination services	103,073		126,477		195,570		28,804			640,673		468,567		69,012
Account management services	489,673		300,720		157,327		23,172			1,527,037		871,213		128,316
Others	176,439		156,408		263,452		38,802			505,759		525,293		77,367
Total net revenue	2,056,108		754,689		1,022,762		150,636			6,253,156		2,801,111		412,560
Operating costs and expenses:
Sales and marketing	1,160,365		508,466		485,055		71,441			3,496,957		1,609,962		237,122
Origination,servicing and other   operating costs	156,073		165,183		239,655		35,297			491,141		507,756		74,784
General and administrative	168,092		172,568		159,670		23,517			601,333		481,279		70,885
Allowance for contract assets and   receivables	344,742		168,708		25,016		3,684			1,036,707		337,109		49,651
Total operating costs and expenses	1,829,272		1,014,925		909,396		133,939			5,626,138		2,936,106		432,442
Other income/(expenses):
Interest income, net	13,825		16,950		11,003		1,621			62,913		53,069		7,816
Fair value adjustments related to   Consolidated ABFE	(1,323)		(32,957)		(30,905)		(4,552)			39,462		(89,882)		(13,238)
Others, net	7,112		(3,510)		2,726		401			184,815		11,400		1,679
Total other income/(expenses)	19,614		(19,517)		(17,176)		(2,530)			287,190		(25,413)		(3,743)
Income/(loss) before provision for income taxes	246,450		(279,753)		96,190		14,167			914,208		(160,408)		(23,625)
Share of results of equity investees	1,505		-		-		-			(4,268)		-		-
Income tax expense/(benefit)	19,924		(47,558)		16,353		2,408			158,314		(27,269)		(4,016)
Net income/(loss)	228,031		(232,195)		79,837		11,759			751,626		(133,139)		(19,609)
Weighted average number of ordinary shares outstanding, basic	185,548,214		185,613,735		186,784,192		186,784,192			185,095,873		186,002,493		186,002,493
Basic income/(loss) per share	1.2290		(1.2510)		0.4274		0.0630			4.0607		(0.7158)		(0.1054)
Basic income/(loss) per ADS	2.4580		(2.5020)		0.8548		0.1260			8.1214		(1.4316)		(0.2108)
Weighted average number of ordinary shares outstanding, diluted	186,351,678		185,613,735		187,370,892		187,370,892			186,433,058		186,002,493		186,002,493
Diluted income/(loss) per share	1.2237		(1.2510)		0.4261		0.0628			4.0316		(0.7158)		(0.1054)
Diluted income/(loss) per ADS	2.4474		(2.5020)		0.8522		0.1256			8.0632		(1.4316)		(0.2108)
Unaudited Condensed Consolidated Cash Flow Data(Recast*)
Net cash generated from/(used in) operating activities	808,148		(64,721)		3,098		455			186,065		501,097		73,803
Net cash (used in)/provided by investing activities	(78,146)		(186,670)		(99,460)		(14,649)			(87,181)		(815,567)		(120,120)
Net cash (used in)/provided by financing activities	(839,114)		39,905		81,693		12,032			(419,110)		55,961		8,242
Effect of foreign exchange rate changes	3,193		(86)		(3,389)		(498)			2,529		(2,269)		(334)
Net decrease in cash, cash equivalents and restricted cash	(105,919)		(211,572)		(18,058)		(2,660)			(317,697)		(260,778)		(38,409)
Cash, cash equivalents and restricted cash, beginning of period	2,822,706		3,237,994		3,026,422		445,744			3,034,484		3,269,142		481,493
Cash, cash equivalents and restricted cash, end of period	2,716,787		3,026,422		3,008,364		443,084			2,716,787		3,008,364		443,084

 

 

 

Unaudited Condensed Consolidated Balance Sheets
(in thousands)
	As of
	December 31, 2019		June 30, 2020		September 30, 2020		September 30, 2020
	RMB		RMB		RMB		USD
Cash and cash equivalents	3,198,086		2,935,543		2,836,229		417,731
Restricted cash	71,056		90,879		172,135		25,353
Accounts receivable	3,398		27,309		100,657		14,825
Contract assets, net	2,398,685		1,356,886		1,231,190		181,335
Contract cost	160,003		145,809		124,005		18,264
Prepaid expenses and other assets	1,333,221		1,134,257		986,747		145,332
Loans at fair value	418,492		246,475		180,058		26,520
Financing receivables	29,612		54,876		267,938		39,463
Amounts due from related parties	988,853		1,560,376		1,584,084		233,310
Held-to-maturity investments	6,627		4,126		2,349		346
Available-for-sale investments	460,991		513,013		511,267		75,301
Property, equipment and software, net	195,855		184,957		163,696		24,110
Deferred tax assets	45,407		49,051		50,175		7,390
Right-of-use assets	334,134		224,067		160,825		23,687
Total assets	9,644,420		8,527,624		8,371,355		1,232,967
Accounts payable	43,583		40,324		24,757		3,646
Amounts due to related parties	106,645		184,325		293,620		43,246
Liabilities from quality assurance program         and guarantee	4,397		2,660		2,065		304
Deferred revenue	358,203		190,712		135,590		19,970
Accrued expenses and other liabilities	2,338,745		1,981,040		1,993,273		293,577
Refund liability	1,801,535		1,501,318		1,285,109		189,276
Deferred tax liabilities	218,888		162,016		150,486		22,164
Lease liabilities	282,334		205,056		135,544		19,963
Total liabilities	5,154,330		4,267,451		4,030,320		593,601
Ordinary shares	121		121		121		18
Additional paid-in capital	5,038,691		5,050,226		5,059,529		745,188
Treasury stock	(37,097)		(37,097)		(40,147)		(5,913)
Accumulated other comprehensive income	21,855		23,474		18,595		2,739
Accumulated deficit	(533,480)		(776,551)		(697,063)		(102,666)
Total equity	4,490,090		4,260,173		4,341,035		639,366
Total liabilities and equity	9,644,420		8,527,624		8,371,355		1,232,967

 

 

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 Nine Months Ended
	September 30, 2019		June 30, 2020		September 30, 2020		September 30, 2020			September 30, 2019		September 30, 2020		September 30, 2020
	RMB		RMB		RMB		USD			RMB		RMB		USD
Operating Highlights
Amount of p2p investment	9,037,670		4,017,751		2,620,252		385,921			32,412,841		11,841,750		1,744,101
Number of p2p investors	113,955		63,066		41,851		41,851			319,538		119,929		119,929
Amount of non-p2p investment	767,226		2,186,210		4,593,256		676,514			1,380,717		8,942,780		1,317,129
Number of non-p2p investors	12,235		30,392		76,707		76,707			26,101		90,888		90,888
Amount of loans facilitated	10,496,261		2,402,494		3,206,977		472,337			31,105,001		7,448,925		1,097,108
Number of borrowers	150,280		107,568		143,238		143,238			423,414		360,170		360,170
Remaining principal of performing loans	54,553,702		33,454,423		28,007,249		4,125,022			54,553,702		28,007,249		4,125,022
Segment Information
Wealth management:
Revenue	540,554		322,381		281,050		41,394			1,654,366		1,019,307		150,129
Sales and marketing expenses	219,390		45,454		43,879		6,463			576,462		156,659		23,074
Consumer credit:
Revenue	1,515,554		432,308		741,712		109,242			4,598,790		1,781,804		262,431
Sales and marketing expenses	940,975		463,012		441,176		64,978			2,920,495		1,453,303		214,048
Reconciliation of Adjusted EBITDA
Net income/(loss)	228,031		(232,195)		79,837		11,759			751,626		(133,139)		(19,609)
Interest income, net	(13,825)		(16,950)		(11,003)		(1,621)			(62,913)		(53,069)		(7,816)
Income tax expense/(benefit)	19,924		(47,558)		16,353		2,408			158,314		(27,269)		(4,016)
Depreciation and amortization	32,153		24,368		23,404		3,447			95,767		74,943		11,038
Share-based compensation	7,954		2,954		8,952		1,319			40,385		16,447		2,422
Adjusted EBITDA	274,237		(269,381)		117,543		17,312			983,179		(122,087)		(17,981)
Adjusted EBITDA margin	13.3%		-35.7%		11.5%		11.5%			15.7%		-4.4%		-4.4%
*The Company reclassified 22.0 million payments made in the second quarter of 2020 related to financing receivables from cash used in operating activities to cash used in investing activities.

 

 

 

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%
December 31, 2019		1.2%		2.0%		1.7%
March 31, 2020		1.6%		4.1%		3.2%
June 30, 2020		1.4%		2.0%		2.1%
September 30, 2020		1.1%		1.7%		1.6%
Online Channels
December 31, 2015		0.5%		0.8%		0.6%
December 31, 2016		0.6%		1.0%		0.8%
December 31, 2017		1.3%		1.2%		0.9%
December 31, 2018		1.2%		2.3%		2.2%
December 31, 2019		1.6%		2.9%		2.5%
March 31, 2020		1.9%		5.2%		3.8%
June 30, 2020		1.4%		2.4%		2.7%
September 30, 2020		1.2%		2.2%		2.1%
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%
December 31, 2019		1.0%		1.7%		1.5%
March 31, 2020		1.6%		3.7%		3.1%
June 30, 2020		1.4%		1.8%		2.0%
September 30, 2020		1.0%		1.5%		1.5%

 

 

Net Charge-Off Rate
Loan Issued Period		Amount of Loans Facilitated During the Period		Accumulated M3+ Net Charge- Off as of September 30, 2020		Total Net Charge-Off Rate as of September 30, 2020
		(in RMB thousands)		(in RMB thousands)
2015		53,143,029		4,426,384		8.3%
2016		53,805,112		5,035,620		9.4%
2017		69,883,293		11,848,179		17.0%
2018		63,176,149		11,551,234		18.3%
2019		39,103,048		4,654,088		11.9%
2020H1		3,574,487		6,815		0.2%

 

 

M3+ Net Charge-Off Rate
Loan Issued Period		Month on Book
2015Q1		0.8%	2.0%	3.4%	4.7%	5.7%	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%	7.9%	8.3%	8.5%	8.7%	8.8%
2015Q3		0.4%	1.6%	3.1%	4.4%	5.6%	6.5%	7.1%	7.6%	7.9%	8.1%	8.4%
2015Q4		0.4%	1.6%	3.1%	4.4%	5.5%	6.3%	6.9%	7.4%	7.9%	8.3%	8.5%
2016Q1		0.3%	1.2%	2.5%	3.6%	4.5%	5.2%	5.8%	6.4%	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%	3.0%	4.3%	5.4%	6.6%	7.8%	8.6%	9.1%	9.5%	9.7%
2016Q4		0.2%	1.5%	2.9%	4.3%	5.8%	7.3%	8.3%	9.2%	9.9%	10.3%	10.6%
2017Q1		0.4%	1.6%	3.2%	5.1%	7.0%	8.4%	9.7%	10.6%	11.3%	11.8%	12.0%
2017Q2		1.2%	3.0%	5.6%	8.3%	10.2%	11.9%	13.2%	14.2%	15.0%	15.4%	15.7%
2017Q3		0.5%	3.0%	6.3%	9.0%	11.4%	13.3%	14.8%	15.9%	16.6%	17.1%	17.4%
2017Q4		0.8%	4.1%	7.4%	10.5%	13.2%	15.2%	16.7%	17.8%	18.6%	19.1%
2018Q1		0.4%	3.1%	6.6%	10.0%	12.8%	15.1%	16.8%	18.1%	19.1%
2018Q2		0.5%	3.7%	7.4%	10.8%	13.6%	15.8%	17.7%	19.2%
2018Q3		0.4%	3.0%	6.2%	9.1%	11.7%	13.9%	15.9%
2018Q4		0.3%	2.5%	5.6%	8.6%	11.7%	14.5%
2019Q1		0.2%	2.5%	5.6%	9.0%	12.7%
2019Q2		0.3%	2.9%	6.9%	11.3%
2019Q3		0.3%	3.4%	8.0%
2019Q4		0.3%	3.9%
2020Q1		0.5%

 

 

View original content:http://www.prnewswire.com/news-releases/yiren-digital-reports-third-quarter-2020-financial-results-301181068.html

SOURCE Yiren Digital

FAQ

What were Yiren Digital's Q3 2020 financial results?

Yiren Digital reported net revenue of RMB 1.0 billion for Q3 2020, a 36% increase from Q2 2020, while net income was RMB 79.8 million.

How did Yiren Digital perform in wealth management in Q3 2020?

The wealth management segment saw a 71.4% increase in AUA to RMB 4.3 billion and a 110.1% rise in sales volume.

What challenges did Yiren Digital face in Q3 2020?

Yiren Digital's total loan originations dropped by 69% compared to the previous year, indicating challenges in its lending business.

What was the impact of the COVID-19 pandemic on Yiren Digital's services?

The pandemic contributed to a significant decrease in loan originations and revenue from the credit segment, with a 51.1% drop year-over-year.