What happened
Shares of the Chinese financial services platform Yiren Digital (YRD 1.20%) jumped more than 36% this week following trading Thursday after the company announced earnings results for the first quarter of 2021.
So what
Yiren Digital, which provides China's wealthy population with a variety of lending and wealth-management services, reported net income equivalent to $27.7 million for the first quarter of 2021, a big 844% jump from net income the company reported in the first quarter of 2020.
Quarterly revenue also grew 7% year over year as total clients assets reached the equivalent of $1.6 billion, up nearly 25% from the previous quarter. Total loans reached the equivalent of roughly $800 million, up more than 17% from the previous quarter.
Image source: Getty Images.
Mr. Ning Tang, chairman and CEO of the company, said in a statement:
We have completed our transition to a leading user-centric digital personal financial management platform and we are pleased to start the year of 2021 with a strong quarter, resuming high quality growth and returning to our normal profitability margin level.
Now what
Yiren Digital has now completed spinning off a legacy business and has transitioned into a much more digital financial-services company that is continuing to invest in digital capabilities to better serve its customers.
The company now has 5.3 million borrowers and 2.4 million investors on its platform. Both groups are up significantly year over year. Yiren is also planning to expand its offering of financial products and services, which could increase revenue and draw in more customers, so the company looks to be well positioned.
