Yiren Digital Reports Second Quarter 2020 Financial Results

BEIJING,Aug. 28,2020 -- Yiren Digital Ltd. (NYSE: YRD) ("Yiren Digital" or the "Company"),a leading fintech company in China,today announced its unaudited financial results for the second quarter ended June 30,2020.

Second Quarter 2020 Operational Highlights

Wealth Management—Yiren Wealth

Cumulative number of investors served reached 2,223,250 as of June 30,2020,representing an increase of 0.2% from 2,218,181 as of March 31,2020 and compared to 2,185,513 as of June 30,2019.

Number of current investors was 195,211 as of June 30,representing a decrease of 11.5% from 220,568 as of March 31,2020.

Number of current non-P2P investors was 31,530 as of June 30,representing an increase of 19.7% from 26,346 as of March 31,and compared to 17,133 as of June 30,2019.

Total assets under administration ("AUA") for P2P products on Yiren Wealth was RMB 25,896.8 million (US$3,665.4 million) as of June 30,representing a decrease of 15.2% from RMB 30,536.4 million as of March 31,and compared to RMB 43,249.9 million as of June 30,2019.

Total AUA for non-P2P products on Yiren Wealth was RMB 2,528.6 million (US$357.9 million) as of June 30,representing an increase of 47.6% from 1,713.1 million as of March 31,and compared to RMB 352.7 million as of June 30,2019.

Sales volume of non-P2P products amounted to RMB 2,186.2 million (US$309.4 million) in the second quarter of 2020,representing an increase of 1.1% from RMB 2,163.3 million in the first quarter of 2020 and compared to RMB 284.8 million in the same period of 2019.

Consumer Credit—Yiren Credit

Total loan originations in the second quarter of 2020 reached RMB 2.4 billion (US$0.3 billion),representing an increase of 30.6% from RMB 1.8 billion in the first quarter of 2020 and compared to RMB 9.7 billion in the second quarter of 2019.

Cumulative number of borrowers served reached 4,917,635 as of June 30,representing an increase of 2.2% from 4,810,184 as of March 31,2020 and compared to 4,491,334 as of June 30,2019.

Number of borrowers served in the second quarter of 2020 was 107,568 representing a decrease of 6.8% from 115,420 in the first quarter of 2020 and compared to 135,246 in the second quarter of 2019.

The percentage of loan volume generated by repeat borrowers was 0.3% in the second quarter of 2020.

25.0% of loan originations were generated online in the second quarter of 2020.

Total outstanding principal balance of performing loans reached RMB 33,454.4 million (US$4,735.2 million) as of June 30,representing a decrease of 20.5% from RMB 42,063.0 million as of March 31,2020.

"With the pandemic still not far behind us and the changing market environment in the second quarter,we are making comprehensive progresses towards our business transition in our credit-tech business and have achieved meaningful scale in our wealth management business growth," said Mr. Ning Tang,Chairman and Chief Executive Officer of Yiren Digital.

"For our credit-tech business,our new online product initiatives are tracking very well. Our new revolving loan product,Yi Xiang Hua,accounted for 13% of our total loan volume this quarter,growing over 500% quarter over quarter. Meanwhile,by leveraging our vast offline service network coverage,we are ramping up auto loans nicely,achieving a 51% growth from last quarter. Moreover,we have made great strides in repositioning our credit business by moving from a P2P funding model to a loan facilitation model. In the second quarter,63% of loans facilitated were funded by institutional intuitional partners and we expect this proportion to reach close to100% by the end of this year with a diversified partner base."

"On wealth management business,we are seeing very strong growth momentum particularly for our fund products. As of June 30,the number of current non-P2P investors increased 20%from last quarter to 31,530,and total AUA for non-P2P products increased by 48% quarterly to RMB2.5 billion. Moreover,average AUA per investor for non-P2P products also sees steady growth,with average AUA per investor for bank's fixed-income products exceeding RMB 100,000 and for funds over RMB 50,000,which is well above industry average"

"We are delighted to see a notable acceleration in loan originations from prior quarter to RMB 2.4 billion,thanks to our strategic initiatives this year in diversification of our loan products," said Mr. Zhong Bi,Chief Financial Officer of Yiren Digital. "To provide relief to our borrowers who were significantly affected by the pandemic as well as medical workers who fought on the frontlines,we proactively granted a concession totaling RMB 245 million for over 50,000 borrowers in principal,interest and late fees,this represents a one-time hit to our revenue. On the balance sheet side,our cash position remains strong with approximately RMB 3.4 billion of cash and short-term investments as of June 30,2020. "

"Thanks to our continued efforts in risk management,the delinquency rates have shown a progressive improving trend. 15-90 days delinquency has decreased to 5.5% as of June 30,2020 from 8.9% as of March 31,2020. 15-90 days delinquency further decreased to 5.2% as of July 31,2020 as a result of our strengthened efforts in tightening controls and improving borrower's credit quality." said Mr. Michael Ji,Chief Risk Officer of Yiren Digital. "To mitigate the risk caused by covid-19 and help customers went through the financial hardship,we have launched 7 relating special collection projects in the second quarter,including continued 'pandemic customer care program',which offered payment relief for the customers who were hit by covid-19 and healthcare givers who were fighting the disease. These special collection projects helped us achieve a decline in NCL by over 10% as compared with projection at the beginning of the year,even facing the economic headwind. We will continue to strengthen our risk management and expect delinquency rates to further improve in the second half of the year.

Second Quarter 2020 Financial Results

Total amount of loans facilitatedin the second quarter of 2020 was RMB 2,402.5 million (US$340.1 million),compared to RMB 9,673.8 million in the same period last year. As of June 30,the total outstanding principal amount of the performing loans was RMB 33.5 billion (US$4.7 billion),decreased by 20% from RMB 42.1 billion as of March 31,2020.

Total net revenue in the second quarter of 2020 was RMB 754.7 million (US$106.8 million),compared to RMB 2,216.6 million in the same period last year. Revenue from Yiren Credit reached RMB 432.3 million (US$61.2 million),representing a decrease of 73% from RMB 1,624.3 million in the second quarter of 2019. Revenue from Yiren Wealth reached RMB 322.4 million (US$45.6 million),representing a decrease of 46% from RMB 592.4 million in the second quarter of 2019.

Sales and marketing expensesin the second quarter of 2020 were RMB 508.5 million (US$72.0 million),compared to RMB 1,208.6 million in the same period last year. Sales and marketing expenses in the second quarter of 2020 accounted for 21.2% of the total amount of loans facilitated,as compared to 12.5% in the same period last year mainly due to the decline of loan volume.

Origination and servicing costsin the second quarter of 2020 were RMB 165.2 million (US$23.4 million),compared to RMB 162.9 million in the same period last year. Origination and servicing costs in the second quarter of 2020 accounted for 6.9% of the total amount of loans facilitated,compared to 1.7% in the same period last year due to the decline of loan volume.

General and administrative expenses in the second quarter of 2020 were RMB 172.6 million (US$24.4 million),compared to RMB 175.5 million in the same period last year. General and administrative expenses in the second quarter of 2020 accounted for 22.9% of the total net revenue,compared to 7.9% in the same period last year.

Allowance for contract assets and receivablesin the second quarter of 2020 were RMB 168.7 million (US$23.9 million),compared to RMB 500.9 million in the same period last year.

Income tax benefitin the second quarter of 2020 was RMB 47.6 million (US$6.7 million).

Net lossin the second quarter of 2020 was RMB 232.2 million (US$32.9 million),compared to net income of RMB 154.5 million in the same period last year.

Adjusted EBITDA(non-GAAP) in the second quarter of 2020 was net loss of RMB 269.4 million (US$38.1 million),compared to net income of RMB 239.9 million in the same period last year.

Basic income per ADSin the second quarter of 2020 was net loss of RMB 2.5 (US$0.4),compared to a basic income per ADS of RMB 1.7 in the same period last year.

Diluted income per ADSin the second quarter of 2020 was net loss of RMB 2.5 (US$0.4),compared to a diluted income per ADS of RMB 1.7 in the same period last year.

Net cash used in operating activitiesin the second quarter of 2020 was RMB 86.8 million (US$12.3 million),compared to net cash generated from operating activities of RMB 36.4 million in the same period last year.

Net cash used in investing activitiesin the second quarter of 2020 was RMB 164.6 million (US$23.3 million),compared to net cash provided by investing activities of RMB 240.9 million in the same period last year.

As of June 30,cash and cash equivalents was RMB 2,935.5 million (US$415.5 million),compared to RMB 3,195.0 million as of March 31,2020. As of June 30,the balance of held-to-maturity investments was RMB 4.1 million (US$0.6 million),compared to RMB 4.4 million as of March 31,the balance of available-for-sale investments was RMB 513.0 million (US$72.6 million),compared to RMB 456.1 million as of March 31,2020.

Delinquency rates. As of June 30,the delinquency rates for loans that are past due for 15-29 days,30-59 days and 60-89 days were 1.4%,2.0%,and 2.1%,respectively compared to1.6%,4.1%,and 3.2%,as of March 31,2020.

Cumulative M3+ net charge-off rates. As of June 30,the cumulative M3+ net charge-off rate for loans originated in 2017 was 16.7%,compared to 16.5% as of March 31,the cumulative M3+ net charge-off rate for loans originated in 2018 was 17.6%,compared to 15.8% as of March 31,the cumulative M3+ net charge-off rate for loans originated in 2019 was 9.4%,compared to 5.2% as of March 31,2020.

Recent Development

Management Change

Mr. Zhong Bi has resigned from his position as the Company's Chief Financial Officer ("CFO") to pursue other opportunities,effective on September 10,2020. The board of directors of the Company has appointed Ms. Na Mei as the Company's new CFO,2020. Over the past two months,Ms. Mei has been working with Mr. Bi on daily CFO duties to ensure a smooth transition.

Ms. Mei joined CreditEase Consumer Credit Division,now part of Yiren Digital,in 2015. She has served as the financial controller for this business unit and the head of business finance department. Prior to joining CreditEase,Ms. Mei had worked 12 years at PricewaterhouseCoopers. She brought in seasoned experience in finance management,taxation,internal control and consulting,along with years of first-hand exposure dealing with publicly listed companies in China and abroad. Ms. Mei obtained her bachelor's degree from Capital Economic University and is a certified public accountant.

2020 Share Incentive Plan

Yiren Digital adopted a 2020 share incentive plan (the "2020 Plan") in the second quarter of 2020. The 2020 Plan has a ten-year term,and has a maximum number of 18,560,000 ordinary shares available for issuance pursuant to all awards under the 2020 Plan. Yiren Digital may grant restricted share units and other form of awards pursuant to the 2020 Plan. In connection with the adoption of the 2020 Plan and to prevent dilution to existing shareholders,CreditEase Holdings (Cayman) Limited,the parent company of Yiren Digital,will surrender for cancellation and for nil consideration 18,000 ordinary shares of US$0.0001 par value each standing in its name in the register of members of Yiren Digital.

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 7.0651 to US$1.00,the effective noon buying rate on June 30,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 at8:00 p.m. U.S. Eastern TimeonAugust 27,2020 (or 8:00 a.m.Beijing/Hong Kong Time on August 28,2020).

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

http://apac.directeventreg.com/registration/event/9992747

Please note the Conference ID number of 9992747.

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 untilSeptember 3,2020:

International

+61 2-8199-0299

U.S.

+1 646-254-3697

Replay Access Code:

9992747

Additionally,a live and archived webcast of the conference call will be available atir.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 Six Months Ended

June 30,

2019

March 31,

2020

June 30,

2019

June 30,

2020

RMB

RMB

RMB

USD

RMB

RMB

USD

Net revenue:

Loan facilitation services

1,237,718

358,541

171,084

24,215

2,292,764

529,625

74,964

Post-origination services

241,321

146,520

126,477

17,902

537,600

272,997

38,640

Account management services

549,024

413,166

300,720

42,564

1,037,364

713,886

101,044

Others

188,577

105,433

156,408

22,138

329,320

261,841

37,061

Total net revenue

2,216,640

1,023,660

754,689

106,819

4,197,048

1,778,349

251,709

Operating costs and expenses:

Sales and marketing

1,208,647

616,441

508,466

71,969

2,336,592

1,124,907

159,220

Origination and servicing

162,945

102,918

165,183

23,380

335,068

268,101

37,947

General and administrative

175,534

149,041

172,568

24,425

433,241

321,609

45,521

Allowance for contract assets and

receivables

500,861

143,385

168,708

23,879

691,965

312,093

44,174

Total operating costs and expenses

2,047,987

1,011,785

1,014,925

143,653

3,796,866

2,026,710

286,862

Other income/(expenses):

Interest income,net

25,213

25,116

16,950

2,399

49,088

42,066

5,954

Fair value adjustments related to

Consolidated ABFE

5,787

(26,020)

(32,957)

(4,665)

40,785

(58,977)

(8,348)

Others,net

17,480

12,184

(3,510)

(496)

177,703

8,674

1,228

Total other income/(expenses)

48,480

11,280

(19,517)

(2,762)

267,576

(8,237)

(1,166)

Income/(loss) before provision for

income taxes

217,133

23,155

(279,753)

(39,596)

667,758

(256,598)

(36,319)

Share of results of equity investees

(816)

-

-

-

(5,773)

-

-

Income tax expense/(benefit)

61,856

3,936

(47,558)

(6,731)

138,390

(43,622)

(6,174)

Net income/(loss)

154,461

19,219

(232,195)

(32,865)

523,595

(212,976)

(30,145)

Weighted average number of ordinary

shares outstanding,basic

184,608,337

185,600,961

185,613,735

185,735

184,865,964

185,607,348

185,348

Basic income/(loss) per share

0.8367

0.1036

(1.2510)

(0.1771)

2.8323

(1.1475)

(0.1624)

Basic income/(loss) per ADS

1.6734

0.2072

(2.5020)

(0.3542)

5.6646

(2.2950)

(0.3248)

Weighted average number of ordinary

shares outstanding,diluted

186,667,233

186,166,429

185,735

186,621,626

185,348

Diluted income/(loss) per share

0.8275

0.1032

(1.2510)

(0.1771)

2.8057

(1.1475)

(0.1624)

Diluted income/(loss) per ADS

1.6550

0.2064

(2.5020)

(0.3542)

5.6114

(2.2950)

(0.3248)

Unaudited Condensed Consolidated

Cash Flow Data

Net cash generated from/(used in)

operating activities

36,352

557,762

(86,768)

(12,281)

(622,083)

470,994

66,664

Net cash provided by/(used in)

investing activities

240,896

(524,479)

(164,623)

(23,302)

(9,035)

(689,102)

(97,537)

Net cash (used in)/provided by

financing activities

(73,385)

(65,637)

39,905

5,648

420,004

(25,732)

(3,642)

Effect of foreign exchange rate changes

1,532

1,206

(86)

(12)

(664)

1,120

159

Net increase/(decrease) in cash,cash

equivalents and restricted cash

205,395

(31,148)

(211,572)

(29,947)

(211,778)

(242,720)

(34,356)

Cash,cash equivalents and restricted

cash,beginning of period

2,617,311

3,269,142

3,994

458,308

3,034,484

3,142

462,717

Cash,end of period

2,822,706

3,994

3,422

428,361

2,361

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

As of

December 31,

2020

RMB

RMB

RMB

USD

Cash and cash equivalents

3,198,086

3,194,993

2,935,543

415,498

Restricted cash

71,056

43,001

90,879

12,863

Accounts receivable

3,398

33,902

27,309

3,865

Contract assets,net

2,398,685

1,873,548

1,356,886

192,055

Contract cost

160,003

149,917

145,809

20,638

Prepaid expenses and other assets

1,333,221

868,462

1,134,257

160,545

Loans at fair value

418,492

313,267

246,475

34,886

Financing receivables

29,612

33,381

54,876

7,767

Amounts due from related parties

988,853

1,583,859

1,376

220,857

Held-to-maturity investments

6,627

4,399

4,126

584

Available-for-sale investments

460,991

456,061

513,013

72,612

Property,equipment and software,net

195,855

188,880

184,957

26,179

Deferred tax assets

45,407

42,084

49,051

6,943

Right-of-use assets

334,134

291,028

224,067

31,715

Total assets

9,644,420

9,076,782

8,527,624

1,207,007

Accounts payable

43,583

39,068

40,324

5,708

Amounts due to related parties

106,645

112,034

184,325

26,090

Liabilities from quality assurance program and guarantee

4,397

3,487

2,660

377

Deferred revenue

358,203

254,933

190,712

26,994

Accrued expenses and other liabilities

2,338,745

1,946,205

1,981,040

280,397

Refund liability

1,801,535

1,760,942

1,501,318

212,497

Deferred tax liabilities

218,888

216,304

162,016

22,932

Lease liabilities

282,334

259,197

205,056

29,024

Total liabilities

5,154,330

4,592,170

4,267,451

604,019

Ordinary shares

121

121

121

17

Additional paid-in capital

5,038,691

5,045,268

5,050,226

714,813

Treasury stock

(37,097)

(37,097)

(5,251)

Accumulated other comprehensive income

21,855

18,671

23,474

3,323

Accumulated deficit

(533,480)

(542,351)

(776,551)

(109,914)

Total equity

4,490,090

4,484,612

4,260,173

602,988

Total liabilities and equity

9,007

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 Six Months Ended

June 30,

2020

RMB

RMB

USD

Operating Highlights

Amount of p2p investment

11,939,582

5,203,747

4,017,751

568,676

23,375,170

9,221,497

1,305,218

Number of p2p investors

157,973

78,256

63,066

63,066

320,054

108,252

108,252

Amount of non-p2p investment

284,782

2,163,313

2,186,210

309,438

613,490

4,349,523

615,635

Number of non-p2p investors

10,235

18,809

30,392

30,392

19,370

39,443

39,443

Amount of loans facilitated

9,673,818

1,839,454

2,402,494

340,051

20,740

4,241,948

600,409

Number of borrowers

135,246

115,420

107,568

107,568

280,634

220,731

220,731

Remaining principal of performing

loans

58,071,303

42,063,039

33,454,423

4,735,166

58,303

33,166

Segment Information

Wealth management:

Revenue

592,378

415,876

322,381

45,630

1,113,812

738,257

104,493

Sales and marketing expenses

213,168

67,326

45,454

6,434

357,072

112,780

15,963

Consumer credit:

Revenue

1,624,262

607,784

432,308

61,189

3,083,236

1,040,092

147,216

Sales and marketing expenses

995,479

549,115

463,012

65,979,520

1,012,127

143,257

Reconciliation of Adjusted

EBITDA

Net income/(loss)

154,145)

Interest income,net

(25,213)

(25,116)

(16,950)

(2,399)

(49,088)

(42,066)

(5,954)

Income tax expense/(benefit)

61,174)

Depreciation and amortization

31,112

27,171

24,368

3,449

63,614

51,539

7,295

Share-based compensation

17,732

4,541

2,954

418

32,431

7,495

1,061

Adjusted EBITDA

239,948

29,751

(269,381)

(38,128)

708,942

(239,630)

(33,917)

Adjusted EBITDA margin

10.8%

2.9%

-35.7%

-35.7%

16.9%

-13.5%

-13.5%

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%

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%

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%

Offline Channels

December 31,2015

0.7%

1.2%

1.0%

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%

Net Charge-Off Rate

Loan

Issued

Period

Amount of Loans

Facilitated

During the Period

Accumulated M3+ Net Charge-

Off

as of June 30,2020

Total Net Charge-Off

Rate

as of June 30,2020

(in RMB thousands)

(in RMB thousands)

2015

53,143,029

4,441,696

8.4%

2016

53,805,112

5,057,850

9.4%

2017

69,883,293

11,693,408

16.7%

2018

63,176,149

11,131,294

17.6%

2019

39,103,048

3,688,712

9.4%

2020Q1

1,320,428

6,388

0.5%

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%

10.7%

2017Q1

0.3%

1.5%

3.2%

5.1%

7.1%

8.6%

9.8%

10.8%

11.5%

12.0%

12.2%

2017Q2

1.1%

2.9%

5.6%

8.4%

10.4%

12.1%

13.5%

14.5%

15.3%

15.8%

16.0%

2017Q3

0.3%

2.9%

6.4%

9.1%

11.6%

13.6%

15.0%

16.2%

16.9%

17.5%

2017Q4

0.5%

3.9%

7.3%

10.5%

13.2%

15.3%

16.9%

18.0%

18.8%

2018Q1

0.4%

3.0%

6.6%

10.1%

12.9%

15.2%

16.9%

18.2%

2018Q2

0.5%

3.6%

7.4%

10.8%

13.6%

15.8%

17.7%

2018Q3

0.4%

3.0%

6.2%

9.1%

11.7%

13.9%

2018Q4

0.3%

2.5%

5.6%

8.6%

11.7%

2019Q1

0.2%

2.5%

5.6%

9.0%

2019Q2

0.3%

2.9%

6.9%

2019Q3

0.3%

3.4%

2019Q4

0.3%

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