November 7, 2016 / 11:44 AM / 2 years ago

LendingClub posts second straight loss as costs rise, loans fall

Nov 7 (Reuters) - Online lending platform operator LendingClub Corp reported its second straight quarterly loss, largely due to increased incentives and higher operating costs.

LendingClub, which matches borrowers and lenders via an online marketplace, also said the National Bank of Canada had approved an investment of $1.3 billion in its platform over the next 12 months.

The company reported a net loss of $36.5 million, or 9 cents per share, in the third quarter ended Sept. 30, compared with a profit of $1 million, or nil cents per share, a year earlier.

Loan originations, a key metric indicating the volume of loans processed, fell 11.8 percent to $1.97 billion.

LendingClub said previously it had raised interest rates for some of its loans and tightened its credit policy that would result in certain high-risk borrowers being denied loans.

The company said operating revenue fell 2.2 percent to $112.6 million. (Reporting by Sweta Singh and Richa Naidu in Bengaluru; Editing by Shounak Dasgupta)

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