Shares of FinVolution (NYSE:FINV) have skyrocketed today, up by 30% as of 12:05 p.m. EST, after the company reported fourth-quarter earnings. Loan origination volumes were strong, and FinVolution issued optimistic guidance for 2021.
Revenue in the fourth quarter was 1.85 billion yuan ($284 million), which resulted in net income of 497.3 million yuan ($76.2 million). Loan origination volumes increased 24% to 21 billion yuan, topping FinVolution's outlook. The Chinese fintech company, which provides financial services to underserved consumers, now has 2.2 million unique borrowers and the average loan size was just over 4,000 yuan.
"This better-than-expected performance underscores our core capabilities that support us to navigate through market dynamics," CEO Feng Zhang said in a statement. "We have successfully completed our strategic transition toward better quality borrowers, as evidenced by the significant improvement in our delinquency levels."
FinVolution also declared a dividend of $0.17 per American depositary share (ADS) for the fiscal year 2020, which will be payable to shareholders of record as of April 7.
The company warns there are ongoing macroeconomic uncertainties related to the COVID-19 pandemic, but it is encouraged that several operating metrics have been steadily improving as the economic environment in China recovers. For 2021, FinVolution said it expects "steady growth" in loan origination volume, which is forecast in the range of 100 billion yuan to 120 billion yuan, representing growth of 56% to 87%.