Yiren Digital Reports Third Quarter 2019 Financial Results

/EIN News/ -- BEIJING, Nov. 14, 2019 (GLOBE NEWSWIRE) -- 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, 2019.

Third Quarter 2019 Operational Highlights
Wealth Management—Yiren Wealth

• Cumulative number of investors served reached 2,200, 223, representing an increase of 0.7% from 2,185,513 in the second quarter of 2019 and compared to 2,042,607 in the third quarter of 2018.
   
• Number of active investors in the third quarter of 2019 was 586,333, representing a decrease of  13% from 671,957 in the second quarter of 2019.
   
• Total assets under management (“AUM”) for Yiren Wealth’s P2P products was RMB 40,191.7 million (US$ 5,623.0 million) as of September 30, 2019, representing a decrease of 7% from RMB  43,249.9 million as of June 30, 2019. Average AUM per investor reached RMB 152,289 (US$ 21,306) as of September 30, 2019, representing an increase of 1% from RMB 151,378 as of June 30, 2019.
   
• Total assets under administration (“AUA”) of non-P2P products amounted to RMB 767.2 million (US$ 107.3 million) in the third quarter of 2019, representing an increase of 169% from RMB 284.8 million in the second quarter of 2019. Total AUM of non-P2P products was RMB 645.9 million (US$90.4 million) as of September 30, 2019, representing an increase of 80% from RMB 358.6 million as of June 30, 2019. Non-P2P products include bank’s wealth management products, mutual funds and insurance.
   
• Number of non-P2P investors was 19,496 as of September 30, 2019, representing an increase of 14% from 17,133 as of June 30, 2019.

Consumer Credit—Yiren Credit

• Total loan originations in the third quarter of 2019 reached RMB 10.5 billion (US$1.5 billion), representing an increase of 9% from RMB 9.7 billion in the second quarter of 2019 and compared to RMB 11.8 billion in the third quarter of 2018.
   
• Cumulative number of borrowers served reached 4,593,590, representing an increase of 2% from 4,491,761 in the second quarter of 2019 and compared to 4,161,600 in the third quarter of 2018.
   
• Number of borrowers in the third quarter of 2019 was 150,280, representing an increase of 11% from 135,246 in the second quarter of 2019 and compared to 174,630 in the third quarter of 2018.
   
• The percentage of loan volume generated by repeat borrowers was 34.0 % in the third quarter of 2019.
   
• 45.7% of loan originations were generated online in the third quarter of 2019.
   
• Total outstanding principal balance of performing loans reached RMB 54,553.7 million (US$7,632.3 million) as of September 30, 2019, representing a decrease of 6% from RMB 58,071.3 million as of June 30, 2019.

“We are pleased to deliver solid performance this quarter amidst a tightening regulatory environment, as highlighted by a 48% increase in net profit to RMB 228.0 million from RMB 154.5 million in the previous quarter, a sign of improvement in our business fundamentals and operating efficiency resulted from the synergies of our business re-alignments,” said Mr. Ning Tang, Chairman and Chief Executive Officer of Yiren Digital. “Looking forward, we will stay focused on driving our credit business and enhancing shareholder value by expanding our product portfolio, achieving further diversification in funding sources and seeking new marketing channels. On wealth management, we rolled out online financial advisory services to selected clients in the third quarter of 2019 and we will continue to focus on building up our investor’s investment portfolio in non-p2p wealth management products.”

“We resumed loan origination growth this quarter with loan volume increasing to RMB 10.5 billion, representing a 9% growth quarter over quarter,” said Mr. Dennis Cong, Senior VP of Yiren Digital. “Our balance sheet remained strong with approximately RMB 3.0 billion of cash and short-term liquidity. In particular, we also generated a positive net cash flow from operating activities of RMB 808.1 million this quarter, indicating a resilient and profitable business model. On institutional funding, we want to highlight that we have increased the line of facility from our institutional partners to RMB 35.0 billion in the third quarter of 2019 from RMB 30.0 billion in the second quarter of 2019.”

“On credit performance and risk management, we are seeing promising improvements in early delinquencies this quarter indicating an enhanced asset quality” said Mr. Huan Chen, Chief Risk Officer of Yiren Digital. “Despite industry uncertainties our early conservative credit policy adjustment has shown improving trends and we are working with regulators in connecting our data to PBOC.”

Third Quarter 2019 Financial Results

Total amount of loans facilitated in the third quarter of 2019 was RMB 10,496.3 million (US$1,468.5 million), compared to RMB 11,781.9 million in the same period last year. As of September 30, 2019, the total outstanding principal amount of the performing loans was RMB 54.6 billion (US$7.6 billion), decreased by 6% from RMB 58.1 billion as of June 30, 2019.

Total net revenue in the third quarter of 2019 was RMB 2,056.1 million (US$287.7 million), compared to RMB 2,187.6 million in the same period last year. Revenue from Yiren Credit reached RMB 1,515.5 million (US$ 212.1 million), representing a decrease of 8% from RMB 1,643.8 million in the third quarter of 2018. Revenue from Yiren Wealth reached RMB 540.6 million (US$75.6 million), representing a decrease of 1% from RMB 543.8 million in the third quarter of 2018.

Sales and marketing expenses in the third quarter of 2019 were RMB 1,160.4 million (US$162.3 million), compared to RMB 1,449.6 million in the same period last year. Sales and marketing expenses in the third quarter of 2019 accounted for 11.1% of the total amount of loans facilitated, as compared to 12.3% in the same period last year mainly due to an increase in customer acquisition and  as well as operating efficiencies.   

Origination and servicing costs in the third quarter of 2019 were RMB 156.1 million (US$21.8 million), compared to RMB 262.1 million in the same period last year. Origination and servicing costs in the third quarter of 2019 accounted for 1.5% of the total amount of loans facilitated, compared to 2.2% in the same period last year.

General and administrative expenses in the third quarter of 2019 were RMB 168.1 million (US$23.5 million), compared to RMB 367.9 million in the same period last year. General and administrative expenses in the third quarter of 2019 accounted for 8.2% of the total net revenue, compared to 16.8% in the same period last year.

Allowance for contract assets in the third quarter of 2019 were RMB 344.7 million (US$48.2 million), compared to RMB 272.9 million in the same period last year. The increase was mainly attributable to changes in future collectability estimates.

Income tax expense in the third quarter of 2019 was RMB 19.9 million (US$2.8 million).

Net income in the third quarter of 2019 was RMB 228.0 million (US$31.9 million), compared to a net loss of RMB 135.8 million in the same period last year. 

Adjusted EBITDA (non-GAAP) in the third quarter of 2019 was RMB 274.2 million (US$38.4 million), compared to an adjusted EBITDA loss of RMB 12.3 million in the same period last year. Adjusted EBITDA margin¹ (non-GAAP) in the third quarter of 2019 was 13.3%, compared to -0.6% in the same period last year.

Basic income per ADS in the third quarter of 2019 was RMB 2.46 (US$0.34), compared to a basic loss per ADS of RMB 1.47 in the same period last year.

Diluted income per ADS in the third quarter of 2019 was RMB 2.45 (US$0.34), compared to a diluted loss per ADS of RMB 1.47 in the same period last year.

Net cash generated from operating activities in the third quarter of 2019 was RMB 808.1 million (US$113.1 million), compared to RMB 216.9 million in the same period last year.

Net cash used in investing activities in the third quarter of 2019 was RMB 924.1 million (US$129.3 million) which includes a payment of RMB 846.0 million made to CreditEase as part of the contingent consideration for the business realignment.

As of September 30, 2019, cash and cash equivalents was RMB 2,633.0 million (US$368.4 million), compared to RMB 2,706.5 million as of June 30, 2019. As of September 30, 2019, the balance of held-to-maturity investments was RMB 8.1 million (US$1.1 million), compared to RMB 9.5 million as of June 30, 2019. As of September 30, 2019, the balance of available-for-sale investments was RMB 426.3 million (US$59.6 million), compared to RMB 387.5 million as of June 30, 2019.

Delinquency rates. As of September 30, 2019, the delinquency rates for loans that are past due for 15-29 days, 30-59 days and 60-89 days were 1.0%, 1.8%, and 1.6%, respectively compared to 1.1%, 1.8%, and 1.9%,as of June 30, 2019.

Cumulative M3+ net charge-off rates. As of September 30, 2019, the cumulative M3+ net charge-off rate for loans originated in 2016 was 9.4%, compared to 9.2% as of June 30, 2019. As of September 30, 2019, the cumulative M3+ net charge-off rate for loans originated in 2017 was 15.3%, compared to 14.0% as of June 30, 2019. As of September 30, 2019, the cumulative M3+ net charge-off rate for loans originated in 2018 was 11.6%, compared to 8.7% as of June 30, 2019.

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 7.1477 to US$1.00, the effective noon buying rate on September 30, 2019, 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 14, 2019, (or 8:00 a.m. Beijing/Hong Kong Time on November 15, 2019).

Dial-in details for the earnings conference call are as follows:

International:	+65 6713-5091
U.S. Toll Free:	+1 866-519-4004
Hong Kong Toll Free:	800-906-601
China Toll Free:	400-620-8038
Conference ID:	9299687

A replay of the conference call may be accessed by phone at the following numbers until November 22, 2019:

International:	+61 2-8199-0299
U.S. Toll Free:	+1 646-254-3697
Replay Access Code:	9299687

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 connecting investors and individual borrowers. 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 more information, please visit ir.Yirendai.com.

For investor and media inquiries, please contact:
Yiren Digital
Investor Relations
Email: ir@Yirendai.com

____________________

¹ Adjusted EBITDA margin is a non-GAAP financial measure calculated as adjusted EBITDA divided by total net revenue.

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, 2018			June 30, 2019			September 30, 2019			September 30, 2019				September 30, 2018			September 30, 2019			September 30, 2019
	RMB (Recast*)			RMB			RMB			USD				RMB (Recast*)			RMB			USD
Net revenue:
Loan facilitation services	1,251,834			1,237,718			1,286,923			180,047				6,303,575			3,579,687			500,817
Post-origination services	269,874			241,321			103,073			14,420				854,749			640,673			89,633
Account management services	508,625			549,024			489,673			68,508				1,302,170			1,527,037			213,640
Others	157,301			188,577			176,439			24,685				479,095			505,759			70,758
Total net revenue	2,187,634			2,216,640			2,056,108			287,660				8,939,589			6,253,156			874,848
Operating costs and expenses:
Sales and marketing	1,449,556			1,208,647			1,160,365			162,341				5,421,523			3,496,957			489,241
Origination and servicing	262,050			162,945			156,073			21,835				834,187			491,141			68,713
General and administrative	367,894			175,534			168,092			23,517				1,394,173			601,333			84,130
Allowance for contract assets and receivables	272,889			500,861			344,742			48,231				783,596			1,036,707			145,041
Total operating costs and expenses	2,352,389			2,047,987			1,829,272			255,924				8,433,479			5,626,138			787,125
Other income/(expenses):
Interest income, net	8,440			25,213			13,825			1,934				58,088			62,913			8,802
Fair value adjustments related to Consolidated ABFE	55,658			5,787			(1,323	)		(185	)			203,278			39,462			5,521
Others, net	1,089			17,480			7,112			995				(5,834	)		184,815			25,857
Total other income	65,187			48,480			19,614			2,744				255,532			287,190			40,180
Income before provision for income taxes	(99,568	)		217,133			246,450			34,480				761,642			914,208			127,903
Share of results of equity investees	(917	)		(816	)		1,505			211				(5,946	)		(4,268	)		(597	)
Income tax expense	35,307			61,856			19,924			2,788				161,802			158,314			22,149
Net income	(135,792	)		154,461			228,031			31,903				593,894			751,626			105,157
Weighted average number of ordinary shares outstanding, basic	185,024,291			184,608,337			185,548,214			185,548,214				183,933,356			185,095,873			185,095,873
Basic income per share	(0.7339	)		0.8367			1.2290			0.1719				3.2289			4.0607			0.5681
Basic income per ADS	(1.4678	)		1.6734			2.4580			0.3438				6.4578			8.1214			1.1362
Weighted average number of ordinary shares outstanding, diluted	185,024,291			186,667,233			186,351,678			186,351,678				186,088,414			186,433,058			186,433,058
Diluted income per share	(0.7339	)		0.8275			1.2237			0.1712				3.1915			4.0316			0.5640
Diluted income per ADS	(1.4678	)		1.6550			2.4474			0.3424				6.3830			8.0632			1.1280
Unaudited Condensed Consolidated Cash Flow Data (Recast**)
Net cash generated from/ (used in) operating activities	216,874			36,352			808,148			113,064				(2,505,496	)		186,065			26,032
Net cash provided by/ (used in) investing activities	2,220,043			240,896			(924,146	)		(129,293	)			2,426,607			(933,181	)		(130,557	)
Net cash (used in)/ provided by financing activities	(2,307,038	)		(73,385	)		6,886			963				(2,272,048	)		426,890			59,724
Effect of foreign exchange rate changes	(119,172	)		1,532			3,193			448				(122,031	)		2,529			354
Net increase/(decrease) in cash, cash equivalents and restricted cash	10,707			205,395			(105,919	)		(14,818	)			(2,472,968	)		(317,697	)		(44,447	)
Cash, cash equivalents and restricted cash, beginning of period	1,996,647			2,617,311			2,822,706			394,911				4,480,322			3,034,484			424,540
Cash, cash equivalents and restricted cash, end of period	2,007,354			2,822,706			2,716,787			380,093				2,007,354			2,716,787		-	380,093

Unaudited Condensed Consolidated Balance Sheets
(in thousands)
		As of
		December 31, 2018			June 30, 2019			September 30, 2019			September 30, 2019
		RMB (Recast*)			RMB			RMB			USD
Cash and cash equivalents		2,606,939			2,706,530			2,632,952			368,364
Restricted cash		427,546			116,176			83,835			11,729
Accounts receivable		40,326			27,212			67,231			9,406
Contract assets, net		3,909,263			2,958,476			2,598,202			363,502
Contract cost		145,460			141,480			143,066			20,016
Prepaid expenses and other assets		2,552,319			1,142,757			1,280,784			179,188
Loans at fair value		1,375,221			677,354			552,648			77,318
Financing receivables		-			25,175			24,630			3,446
Amounts due from related parties		1,361,805			1,791,515			1,678,499			234,831
Held-to-maturity investments		329,597			9,542			8,051			1,126
Available-for-sale investments		835,565			387,519			426,321			59,644
Long term investments		217,636			143,047			144,552			20,224
Property, equipment and software, net		266,002			230,078			213,962			29,934
Deferred tax assets		184,136			149,269			150,363			21,037
Right-of-use assets		-			398,154			383,545			53,660
Total assets		14,251,815			10,904,284			10,388,641			1,453,425
Accounts payable		307,046			54,158			62,313			8,718
Amounts due to related parties		8,276,459			169,189			289,820			40,547
Liabilities from quality assurance program and guarantee		9,950			6,539			5,644			790
Deferred revenue		569,469			390,621			381,899			53,430
Payable to investors at fair value		626,207			-			-			-
Accrued expenses and other liabilities		2,193,576			2,265,288			2,351,078			328,928
Refund liability		2,145,748			2,039,998			2,002,785			280,200
Deferred tax liabilities		486,773			329,347			267,647			37,445
Lease liabilities		-			341,364			322,832			45,166
Contingent consideration		-			2,626,734			1,780,734			249,134
Total liabilities		14,615,228			8,223,238			7,464,752			1,044,358
Ordinary shares		77			77			121			17
Shares to be issued		-			2,754,444			-			-
Additional paid-in capital		1,293,968			1,106,153			3,872,219			541,743
Treasury stock		(254	)		(37,097	)		(37,097	)		(5,190	)
Accumulated other comprehensive income		16,390			18,367			25,225			3,529
Accumulated deficit		(1,673,594	)		(1,160,898	)		(936,579	)		(131,032	)
Total (deficit)/ equity		(363,413	)		2,681,046			2,923,889		-	409,067
Total liabilities and equity		14,251,815			10,904,284			10,388,641		-	1,453,425

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, 2018			June 30, 2019			September 30, 2019			September 30, 2019				September 30, 2018			September 30, 2019			September 30, 2019
	RMB (Recast*)			RMB			RMB			USD				RMB (Recast*)			RMB			USD
Operating Highlights
Amount of investment	18,235,782			11,939,582			9,037,670			1,264,417				53,890,936			32,412,841			4,534,723
AUM of investment	71,950,315			64,476,635			59,792,510			8,365,280				71,950,315			59,792,510			8,365,280
Number of investors	257,159			157,973			113,955			113,955				647,024			319,538			319,538
Amount of loans facilitated	11,781,947			9,673,818			10,496,261			1,468,481				49,733,287			31,105,001			4,351,750
Number of borrowers	174,630			135,246			150,280			150,280				726,917			423,414			423,414
Remaining principal of performing loans	71,625,593			58,071,303			54,553,702			7,632,343				71,625,593			54,553,702			7,632,343
Segment Information
Wealth management:
Revenue	543,857			592,378			540,554			75,626				1,498,458			1,654,366			231,454
Sales and marketing expenses	220,561			213,168			219,390			30,694				1,169,242			576,462			80,650
Consumer credit:
Revenue	1,643,777			1,624,262			1,515,554			212,034				7,441,131			4,598,790			643,394
Sales and marketing expenses	1,228,995			995,479			940,975			131,647				4,252,281			2,920,495			408,591
Reconciliation of Adjusted EBITDA
Net income	(135,792	)		154,461			228,031			31,903				593,894			751,626			105,157
Interest income, net	(8,440	)		(25,213	)		(13,825	)		(1,934	)			(58,088	)		(62,913	)		(8,802	)
Income tax expense	35,307			61,856			19,924			2,788				161,802			158,314			22,149
Depreciation and amortization	35,959			31,112			32,153			4,498				111,356			95,767			13,398
Share-based compensation	60,632			17,732			7,954			1,113				99,931			40,385			5,650
Adjusted EBITDA	(12,334	)		239,948			274,237			38,368				908,895			983,179			137,552
Adjusted EBITDA margin	-0.6	%		10.8	%		13.3	%		13.3	%			10.2	%		15.7	%		15.7	%
* Prior period financials have been recasted to reflect the acquisition from CreditEase under common control.
**The Company reclassified 368.2 million payments made in the second quarter of 2019 related to future acquisitions 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	%		1.0	%
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	%
March 31, 2019		0.9	%		1.9	%		1.7	%
June 30, 2019		1.1	%		1.8	%		1.9	%
September 30, 2019		1.0	%		1.8	%		1.6	%
Online Channels
December 31, 2015		0.5	%		0.8	%		0.6	%
December 31, 2016		0.5	%		0.9	%		0.8	%
December 31, 2017		1.1	%		1.1	%		0.9	%
December 31, 2018		1.2	%		2.3	%		2.2	%
March 31, 2019		1.2	%		2.6	%		2.4	%
June 30, 2019		1.4	%		2.2	%		2.6	%
September 30, 2019		1.3	%		2.4	%		2.3	%
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	%
March 31, 2019		0.8	%		1.6	%		1.5	%
June 30, 2019		1.0	%		1.6	%		1.7	%
September 30, 2019		0.9	%		1.5	%		1.4	%

Net Charge-Off Rate for Upgraded Risk Grid
Loan Issued Period		Customer Grade		Amount of Loans Facilitated During the Period*		Accumulated M3+ Net Charge-Off as of September 30, 2019*		Total Net Charge-Off Rate as of September 30, 2019*
				(in RMB thousands)		(in RMB thousands)
2015		I		4,894,936		201,064		4.1	%
		II		14,492,035		486,144		3.4	%
		III		11,272,838		711,683		6.3	%
		IV		11,283,656		1,357,155		12.0	%
		V		11,199,563		1,718,367		15.3	%
		Total		53,143,029		4,474,413		8.4	%
2016		I		5,858,273		234,148		4.0	%
		II		12,360,346		532,664		4.3	%
		III		9,951,614		749,365		7.5	%
		IV		8,652,543		922,419		10.7	%
		V		16,982,336		2,603,436		15.3	%
		Total		53,805,112		5,042,032		9.4	%
2017		I		10,431,218		670,341		6.4	%
		II		12,270,230		1,507,339		12.3	%
		III		13,837,922		2,183,484		15.8	%
		IV		13,663,558		2,356,569		17.2	%
		V		19,680,365		3,968,677		20.2	%
		Total		69,883,293		10,686,410		15.3	%
2018		I		9,451,125		486,383		5.1	%
		II		14,656,758		1,338,476		9.1	%
		III		13,903,217		1,624,453		11.7	%
		IV		13,812,989		1,961,234		14.2	%
		V		11,326,230		1,886,516		16.7	%
		Total		63,150,319		7,297,061		11.6	%
2019H1		I		3,911,679		28,326		0.7	%
		II		6,050,230		86,221		1.4	%
		III		4,993,682		97,867		2.0	%
		IV		3,220,517		63,400		2.0	%
		V		2,432,632		56,458		2.3	%
		Total		20,608,740		332,273		1.6	%

M3+ Net Charge-Off Rate*
Loan Issued Period		Month on Book
		4		7		10		13		16		19		22		25		28		31		34
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	%	3.1	%	4.3	%	5.4	%	6.6	%	7.8	%	8.6	%	9.2	%	9.5	%	9.8	%
2016Q4		0.2	%	1.5	%	2.9	%	4.4	%	5.9	%	7.4	%	8.4	%	9.3	%	10.0	%	10.4	%
2017Q1		0.3	%	1.5	%	3.2	%	5.1	%	7.1	%	8.6	%	9.8	%	10.8	%	11.5	%
2017Q2		1.1	%	2.9	%	5.6	%	8.4	%	10.4	%	12.1	%	13.5	%	14.5	%
2017Q3		0.3	%	2.9	%	6.3	%	9.1	%	11.6	%	13.6	%	15.0	%
2017Q4		0.5	%	3.8	%	7.2	%	10.4	%	13.2	%	15.3	%
2018Q1		0.4	%	3.0	%	6.6	%	10.1	%	12.9	%
2018Q2		0.5	%	3.6	%	7.4	%	10.8	%
2018Q3		0.3	%	2.9	%	6.2	%
2018Q4		0.3	%	2.5	%
2019Q1		0.2	%
*As one division has already been spun off from the company, as of third quarter 2019, M3+ net charge-off rates no longer reflect the risk performance of loans generated by this division.