Yiren Digital Reports Fourth Quarter and Fiscal Year 2021 Financial Results

BEIJING,Aug. 30,2022 --Yiren Digital Ltd. (NYSE: YRD) ("Yiren Digital" or the "Company"),a leading digital personal financial management platform in China,today announced its unaudited financial results for the fourth quarter and the fiscal year ended December 31,2021.

Fourth Quarter 2021 and Fiscal Year 2021 Operational Highlights

Wealth Management

Cumulative number of investors served reached 2,702,122 as of December 31,2021,representing an increase of 3.4% from 2,612,279 as of September 30,2021 and compared to 2,326,169 as of December 31,2020.

Number of active investors[1]was 424,366 as of December 31,representing a decrease of 0.8% from 427,873 as of September 30,2021 and compared to 163,593 as of December 31,2020. The quarter-over-quarter decline was primarily due to a decline in the insurance segment as a result of optimization in insurance product mix,which was offset by the rapid growth in customer base on Yiren Wealth platform.

Total client assets[2] was RMB19,261.0 million (US$3,022.5 million) as of December 31,representing an increase of 10.6% from RMB17,415.3 million as of September 30,2021 and compared to RMB8,550.7 million as of December 31,2020.

Sales volume of investment products amounted to RMB5,391.8 million (US$846.1 million) in the fourth quarter of 2021,representing an increase of 7.2% from RMB5,030.2 million in the third quarter of 2021 and compared to RMB6,836.9 million in the same period of 2020. For the fiscal year of 2021,sales volume of investment products reached RMB21,588.6 million (US$3,387.7 million),compared to RMB15,779.7 million in 2020.

Consumer Credit

Total loans facilitated under loan facilitation model in the fourth quarter of 2021 reached RMB6.2 billion (US$1.0 billion),representing a decrease of 9.8% from RMB6.8 billion in the third quarter of 2021 and compared to RMB4.2 billion in the fourth quarter of 2020.

Cumulative number of borrowers served reached 6,127,068 as of December 31,representing an increase of 4.9% from 5,840,424 as of September 30,2021 and compared to 5,249,936 as of December 31,2020.

Number of borrowers served in the fourth quarter of 2021 was 618,131,representing an increase of 12.7% from 548,495 in the third quarter of 2021 and compared to 189,117 in the fourth quarter of 2020. Total number of borrowers served in 2021 was 1,297,046.

Outstanding balance of performing loans facilitated under loan facilitation model reached RMB14,102.3 million (US$2,213.0 million) as of December 31,representing an increase of 2.2% from RMB13,793.9 million as of September 30,863.5 million as of December 31,2020.

Consumption-Driven Services

In the second half of 2021,the Company began scaling its e-commerce platform and also launched a "Life Plus Finance" initiative ("Yiren Select"),integrating high quality financial services with online and offline consumption scenarios. Total gross merchandise volume generated through both channels reached RMB61.6 million (US$9.7 million) in the fourth quarter of 2021.

[1]Active investors refer to those who have made at least one investment through our wealth management platform or have had client assets with us above zero in the past twelve months.

[2]Client assets refer to the outstanding balance of client assets generated through our platforms,where an asset is counted towards the outstanding balance for so long as it continues to be held by the investor who acquired it through our platform.

"Looking back at the year of 2021,we are pleased to announce another concrete milestone during the journey of our business transitions towards China's leading digital personal financial management platform,with our revenue structure further diversifying and our business volume and profitability resuming to a healthy growth rate post the restructuring,meeting our previous guidance for both wealth management and credit-tech business lines," said Mr. Ning Tang,Chairman and Chief Executive Officer of Yiren Digital.

"On wealth management,the growth momentum remains strong with contribution to our total net revenue reaching more than 35% in the fourth quarter of 2021,a historical high. Specially,our total client asset reached RMB19.3 billion as of December 31,representing an increase of 11% compared to the end of prior quarter. Notably,total investor base on Yiren Wealth platform saw an accelerated growth due to our Yiren Select initiative. In the fourth quarter of 2021,the number of new investors on Yiren Wealth increased by 22% on a quarter-over-quarter basis and the number of investors who held at least two different asset classes grew by 15% compared with the third quarter of 2021. Moreover,our insurance brokerage business has been growing at a higher-than-expected rate with total premiums reaching RMB888 million in the fourth quarter of 2021,representing a 21% quarterly growth,which is a sharp contrast to the overall industry downside cycle."

"On credit-tech we have seen a visible evolvement in our overall loan portfolio as we continue to optimize our product mix and shift towards higher credit quality customer segments,moving in full swing towards guided APR with stable unit economics. Currently,99% of our new loans facilitated are small revolving loans and SME loans,compared to 71% in the year of 2021,leading to a shorter-tenor portfolio with lower operating and credit costs,which is more flexible to adjust to external environment. Moreover,our e-commerce platform launched in August 2021,has started to contribute revenue with rapid growth,effectively driving up our user activities and establishing a more diversified finance consumption ecosystem."

"The year of 2021 ended with strong earnings. Excluding one-time business disposal expense incurred in the fourth quarter of 2020,total net income for the year of 2021 was more than RMB1.0 billion,compared to a loss of RMB36.9 million in 2020,beating our internal target with fast business recovery and optimized operational efficiency," said Ms. Na Mei,Chief Financial Officer of Yiren Digital. "On the balance sheet side,our cash position grows stronger with RMB3.0 billion cash and short-term investment as of December 31,an increase of 17% compared with the end of the last quarter,providing sufficient fuel for any further business expansion that we may have in the future."

Fourth Quarter 2021 Financial Results

Total net revenue in the fourth quarter of 2021 was RMB1,020.9 million (US$160.2 million),compared to RMB1,160.9 million in the same period of 2020. Specifically,in the fourth quarter of 2021,revenue from wealth management business was RMB372.3 million (US$58.4 million),and revenue from credit business was RMB615.5 million (US$96.6 million). Excluding the impact from the disposed business line,total net revenue in the fourth quarter of 2021 increased by 15.9% compared with the same period in 2020.

Sales and marketing expensesin the fourth quarter of 2021 were RMB304.1 million (US$47.8 million),compared to RMB295.1 million in the same period of 2020. The increase was primarily due to the continued expansion of our insurance brokerage business,which is offset by the optimization of cost structure in our offline business.

Origination,servicing and other operating costsin the fourth quarter of 2021 were RMB216.8 million (US$34.0 million),compared to RMB596.9 million in the same period of 2020. The decrease was primarily due to the improved cost efficiency after the business restructuring completed on December 31,2020.

General and administrative expensesin the fourth quarter of 2021 were RMB119.4 million (US$18.8 million),compared to RMB149.3 million in the same period of 2020. The decrease was mainly due to the optimization of the company's offline business.

Allowance for contract assets,receivables and others in the fourth quarter of 2021 was RMB51.9 million (US$8.1 million),compared to RMB34.5 million in the same period of 2020. The increase was primarily driven by the growth of loan volumes facilitated.

Income tax expense in the fourth quarter of 2021 was RMB5.4 million (US$0.8 million).

Net incomein the fourth quarter of 2021 was RMB330.8 million (US$51.9 million),as compared to net loss of RMB559.6 million in the same period of 2020. The change was primarily due to the one-time expense of business disposal during the restructuring completed on December 31,2020.

Adjusted EBITDA[3](non-GAAP) in the fourth quarter of 2021 was RMB353.4 million (US$55.5 million),compared to RMB48.9 million in the same period of 2020.

Basic and diluted income per ADSin the fourth quarter of 2021 was RMB3.9 (US$0.6),compared to a basic loss per ADS of RMB6.7 and a diluted loss per ADS of RMB6.7 in the same period of 2020.

Net cash generated from operating activities in the fourth quarter of 2021 was RMB189.4 million (US$29.7 million),compared to net cash used in operating activities of RMB219.1 million in the same period of 2020.

Net cash used in investing activities in the fourth quarter of 2021 was RMB381.9 million (US$59.9 million),compared to net cash used in investing activities of RMB981.1 million in the same period of 2020.

As of December 31,cash and cash equivalents was RMB2,864.5 million (US$449.5 million),compared to RMB2,328.4 million as of September 30,2021. As of December 31,the balance of held-to-maturity investments was RMB2.2 million (US$0.3 million),compared to RMB2.2 million as of September 30,the balance of available-for-sale investments was RMB177.4 million (US$27.8 million),compared to RMB277.9 million as of September 30,2021.

Delinquency rates. As of December 31,the delinquency rates for loans that are past due for 15-29 days,30-59 days and 60-89 days were 0.9%,1.5% and 1.2% respectively,compared to 0.5%,0.7% and 0.6% respectively as of December 31,2020.

Cumulative M3+ net charge-off rates. As December 31,the cumulative M3+ net charge-off rate for loans originated in 2018,2019 and 2020 was 9.8%,11.4% and5.8% respectively,as compared to 9.9%,11.0% and 4.8% respectively as of September 30,2021.

[3]"Adjusted EBITDA" is a non-GAAP financial measure. For more information on this non-GAAP financial measure,please see the section of "Operating Highlights and Reconciliations of GAAP to Non-GAAP Measures" and the table captioned "Reconciliations of Adjusted EBITDA" set forth at the end of this press release.

Fiscal Year 2021 Financial Results

Total net revenue in 2021 was RMB4,477.9 million (US$702.7 million),compared to RMB3,962.0 million in 2020. Specifically,revenue from wealth management business in 2021 was RMB1,260.5 million (US$197.8 million),and revenue from credit business in 2021 was RMB3,184.3 million (US$499.7 million). Excluding the impact from the disposed business line,total net revenue in the year of 2021 increased by 92.8% compared with the year of 2020. The increase was primarily due to the business recovery from the COVID-19 pandemic and continued growth in the sales volume of current investment products and loans facilitated under loan facilitation model post the restructuring.

Sales and marketing expenses in 2021 was RMB1,553.3 million (US$243.8 million),905.1 million in 2020. The decrease was primarily due to the optimization of the Company's offline business.

Origination,servicing and other operating costs in 2021 was RMB760.9 million (US$119.4 million),104.7 million in 2020. The decrease was mainly due to the improved cost efficiency after the business restructuring completed on December 31,2020.

General and administrative expenses in 2021 was RMB506.2 million (US$79.4 million),compared to RMB630.6 million in 2020. The decrease was primarily due to the optimization of our offline business and the overall improvement of cost efficiency.

Allowance for contract assets,receivables and others in 2021 was RMB370.2 million (US$58.1 million),which remained stable compared to RMB371.6 million in 2020.

Income tax expensein 2021 was RMB170.2 million (US$26.7 million).

Net income in 2021 was RMB1,033.0 million (US$162.1 million),compared to a net loss of RMB692.7 million in 2020. The income was driven by the resumption of business growth as well as improving operational efficiencies post the pandemic outbreak.

Adjusted EBITDA (non-GAAP)in 2021 was RMB1,338.9 million (US$210.1 million),compared to a loss of RMB73.2 million in 2020. Adjusted EBITDA margin1 (non-GAAP) in 2021 was 29.9%,compared to a loss of 1.8% in 2020.

Basic and diluted income per ADSin 2021 were RMB12.2 (US$1.9) and RMB12.1 (US$1.9) respectively,compared to a loss per ADS of RMB7.7 and a diluted loss per ADS of RMB7.7 in 2020.

Net cash generated from operating activities in 2021 was RMB158.2 million (US$24.8 million),compared to net cash generated from operating activities of RMB282.0 million in 2020.

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 RMB6.3726 to US$1.00,the effective noon buying rate on December 31,as set forth in the H.10 statistical release of the Federal Reserve Board.

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. is a leading digital personal financial management platform in China. The Company provides customized,asset allocation based wealth management solutions to China's mass affluent population as well as utilizes online and offline channels to provide retail credit facilitation services to individual borrowers and small business owners.

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 Year Ended

December

31,2020

September

30,2021

December

31,2021

December 31,

2020

December 31,

2021

December

31,2021

RMB

RMB

RMB

USD

RMB

RMB

USD

Net revenue:

Loan facilitation services

393,682

601,283

410,988

64,493

1,329,720

2,105,776

330,442

Post-origination services

201,873

39,024

49,861

7,824

670,440

174,255

27,344

Account management services

50,566

-

-

-

921,779

-

-

Insurance brokerage services

308,790

199,406

244,780

38,411

430,830

755,691

118,584

Financing services

54,348

144,614

140,027

21,973

59,658

524,840

82,359

Electronic commerce services

-

-

33,114

5,196

-

33,196

Others

151,592

247,664

142,170

22,311

549,535

884,253

138,760

Total net revenue

1,160,851

1,231,991

1,020,940

160,208

3,961,962

4,477,929

702,685

Operating costs and expenses:

Sales and marketing

295,133

407,172

304,114

47,722

1,905,095

1,553,344

243,754

Origination,servicing and other operating

costs

596,926

186,915

216,751

34,013

1,104,682

760,858

119,395

General and administrative

149,276

139,321

119,364

18,731

630,555

506,240

79,440

Allowance for contract assets,receivables

and others

34,520

83,578

51,911

8,146

371,629

370,154

58,085

Loss of disposal

655,839

-

-

-

655,839

-

-

Total operating costs and expenses

1,731,694

816,986

692,140

108,612

4,667,800

3,190,596

500,674

Other income/(expenses):

Interest income/(expense),net

8,554

(21,565)

(18,056)

(2,833)

61,623

(73,383)

(11,515)

Fair value adjustments related to

Consolidated ABFE

(54,106)

(526)

11,720

1,839

(143,988)

(37,442)

(5,875)

Others,net

3,444

3,934

2,935

460

14,844

26,665

4,183

Total other expenses

(42,108)

(18,157)

(3,401)

(534)

(67,521)

(84,160)

(13,207)

(Loss)/income before provision for income

taxes

(612,951)

396,848

325,399

51,062

(773,359)

1,203,173

188,804

Income tax (benefit)/expense

(53,342)

75,923

(5,366)

(842)

(80,611)

170,189

26,706

Net (loss)/income

(559,609)

320,925

330,765

51,904

(692,748)

1,032,984

162,098

Weighted average number of ordinary shares

outstanding,basic

167,964,040

170,193,542

169,967,125

169,125

180,301,898

169,029,826

169,826

Basic (loss)/income per share

(3.3317)

1.8856

1.9461

0.3054

(3.8422)

6.1113

0.9590

Basic (loss)/income per ADS

(6.6634)

3.7712

3.8922

0.6108

(7.6844)

12.2226

1.9180

Weighted average number of ordinary shares

outstanding,diluted

167,040

171,571,392

171,171,951

171,951

180,898

170,590,203

170,203

Diluted (loss)/income per share

(3.3317)

1.8705

1.9324

0.3032

(3.8422)

6.0554

0.9502

Diluted (loss)/income per ADS

(6.6634)

3.7410

3.8648

0.6064

(7.6844)

12.1108

1.9004

Unaudited Condensed Consolidated Cash

Flow Data

Net cash (used in)/generated from operating

activities

(219,069)

323,819

189,377

29,717

282,028

158,192

24,824

Net cash (used in)/provided by investing

activities

(981,096)

(233,782)

381,870

59,924

(1,796,663)

(346,507)

(54,374)

Net cash provided by/(used in) financing

activities

899,487

49,770

(45,831)

(7,192)

955,448

427,446

67,076

Effect of foreign exchange rate changes

(538)

(257)

(283)

(44)

(2,807)

(936)

(147)

Net (decrease)/increase in cash,cash

equivalents and restricted cash

(301,216)

139,550

525,133

82,405

(561,994)

238,195

37,379

Cash,cash equivalents and restricted cash,

beginning of period

3,008,364

2,280,660

2,420,210

379,785

3,269,142

2,707,148

424,811

Cash,

end of period

2,148

2,210

2,945,343

462,190

2,190

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

As of

December 31,

2020

September 30,

2021

December 31,

2021

RMB

RMB

RMB

USD

Cash and cash equivalents

2,469,909

2,328,380

2,864,543

449,511

Restricted cash

237,239

91,830

80,800

12,679

Accounts receivable

122,742

258,729

305,018

47,864

Contract assets,net

750,174

1,191,497

1,905

173,541

Contract cost

65,529

34,707

9,959

1,563

Prepaid expenses and other assets

278,591

358,052

352,015

55,239

Loans at fair value

192,156

82,474

73,734

11,571

Financing receivables

1,253,494

1,969,456

1,697,962

266,449

Amounts due from related parties

884,006

768,646

879,256

137,974

Held-to-maturity investments

3,286

2,200

2,200

341

Available-for-sale investments

175,515

277,934

177,360

27,832

Property,equipment and software,net

147,193

115,326

102,548

16,092

Deferred tax assets

16,745

6,285

7,388

1,159

Right-of-use assets

105,674

70,897

80,752

12,672

Total assets

6,253

7,556,413

7,739,440

1,214,487

Accounts payable

9,903

36,799

19,065

2,992

Amounts due to related parties

970,309

474,925

434,127

68,124

Deferred revenue

50,899

11,862

12,379

1,943

Payable to investors at fair value

52,623

50,814

50,686

7,954

Accrued expenses and other liabilities

1,208,915

1,245,263

1,182,783

185,604

Secured borrowings

500,500

1,038,600

1,028,600

161,410

Refund liability

10,845

5,927

5,732

899

Deferred tax liabilities

38,741

147,575

112,535

17,659

Lease liabilities

81,854

53,194

72,101

11,314

Total liabilities

2,924,589

3,064,959

2,918,008

457,899

Ordinary shares

121

123

123

19

Additional paid-in capital

5,058,176

5,096,994

5,100,486

800,378

Treasury stock

(40,147)

(42,502)

(42,897)

(6,731)

Accumulated other comprehensive income

17,108

14,442

11,553

1,812

Accumulated deficit

(1,257,594)

(577,603)

(247,833)

(38,890)

Total equity

3,777,664

4,491,454

4,821,432

756,588

Total liabilities and equity

6,487

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 Year Ended

December 31,

2021

December 31

2021

RMB

RMB

RMB

USD

RMB

RMB

USD

Operating Highlights

Amount of investment in current investment

products

6,836,906

5,030,228

5,391,760

846,085

15,779,685

21,588,645

3,387,729

Number of investors in current investment

products

99,112

127,378

144,987

144,987

153,700

409,281

409,281

Amount of loans facilitated under loan facilitation

model

4,202,538

6,841,921

6,170,158

968,232

9,614,819

23,195,224

3,639,837

Number of borrowers

189,117

548,495

618,131

618,131

525,320

1,046

1,046

Remaining principal of performing loans

facilitated under loan facilitation model

8,863,461

13,793,925

14,102,279

2,212,955

8,461

14,955

Electronic commerce of gross merchandise

volume

-

-

61,619

9,669

-

61,669

Segment Information

Wealth management:

Revenue

413,057

337,627

372,304

58,423

1,432,364

1,260,513

197,803

Sales and marketing expenses

39,012

55,463

75,842

11,901

195,671

199,336

31,281

Origination,servicing and other operating costs

266,492

159,348

156,243

24,518

442,507

598,606

93,934

Consumer credit:

Revenue

747,794

894,364

615,522

96,589

2,529,598

3,184,302

499,686

Sales and marketing expenses

256,121

351,709

227,508

35,702

1,709,424

1,353,244

212,353

Origination,servicing and other operating costs

330,434

27,567

53,396

8,379

662,175

155,140

24,345

Others:

Revenue

-

-

33,196

Sales and marketing expenses

-

-

764

119

-

764

120

Origination,servicing and other operating costs

-

-

7,112

1,116

-

7,116

Reconciliation of Adjusted EBITDA

Net (loss)/income

(559,098

Interest (income)/expense,net

(8,554)

21,565

18,056

2,833

(61,623)

73,383

11,515

Loss of disposal

655,839

-

-

Income (benefit)/tax expense

(53,706

Depreciation and amortization

16,829

8,449

7,466

1,172

91,772

43,236

6,785

Share-based compensation

(2,274)

11,742

2,497

392

14,173

19,089

2,995

Adjusted EBITDA

48,889

438,604

353,418

55,459

(73,198)

1,338,881

210,099

Adjusted EBITDA margin

4.2%

35.6%

34.6%

34.6%

-1.8%

29.9%

29.9%

Delinquency Rates (Loan Facilitation Model)

15-29 days

30-59 days

60-89 days

All Loans

December 31,2015

1.3%

1.9%

1.5%

December 31,2016

0.6%

0.8%

0.7%

December 31,2017

0.5%

0.8%

0.6%

December 31,2018

1.0%

1.8%

1.7%

December 31,2019

0.8%

1.3%

1.0%

December 31,2020

0.5%

0.7%

0.6%

December 31,2021

0.9%

1.5%

1.2%

Online Channels

December 31,2015

0.4%

0.7%

0.5%

December 31,2016

0.8%

1.1%

1.7%

December 31,2017

0.3%

0.2%

0.0%

December 31,2018

0.9%

1.7%

1.5%

December 31,2019

1.0%

2.1%

1.6%

December 31,2020

0.6%

1.0%

1.1%

December 31,2021

0.8%

1.3%

1.1%

Offline Channels

December 31,2015

1.3%

2.0%

1.6%

December 31,2017

0.5%

0.9%

0.7%

December 31,2018

1.1%

1.9%

1.8%

December 31,2019

0.7%

0.9%

0.7%

December 31,2020

0.4%

0.6%

0.4%

December 31,2021

1.0%

1.8%

1.4%

Net Charge-Off Rate (Loan Facilitation Model)

Loan Issued

Period

Amount of Loans

Facilitated

During the Period

Accumulated M3+ Net

Charge-Off

as of December 31,2021

Total Net Charge-Off

Rate

as of December 31,2021

2015

4,530,824

243,840

5.4%

2016

3,749,815

317,288

8.5%

2017

5,043,494

523,778

10.4%

2018

4,211,573

413,071

9.8%

2019

3,431,443

390,252

11.4%

2020

9,819

560,733

5.8%

2021Q1-Q3

17,025,066

374,843

2.2%

M3+ Net Charge-Off Rate (Loan Facilitation Model)

Loan

Issued

Period

Month on Book

4

7

10

13

16

19

22

25

28

31

34

2015Q1

1.0%

1.9%

2.8%

3.7%

4.3%

4.8%

5.1%

5.3%

5.3%

5.3%

5.2%

2015Q2

1.1%

2.8%

4.2%

5.3%

6.2%

6.7%

7.0%

7.0%

6.9%

6.8%

6.8%

2015Q3

0.6%

2.2%

3.8%

5.0%

5.9%

6.5%

6.7%

6.8%

6.7%

6.7%

6.7%

2015Q4

1.0%

1.5%

2.2%

2.8%

3.1%

3.4%

3.7%

4.0%

4.2%

4.4%

4.4%

2016Q1

0.6%

0.9%

1.3%

1.7%

2.0%

2.2%

2.4%

2.7%

2.9%

3.0%

3.2%

2016Q2

0.6%

1.4%

2.3%

3.0%

3.6%

4.2%

4.8%

5.4%

5.8%

6.0%

6.2%

2016Q3

0.4%

1.7%

2.7%

4.1%

5.3%

6.5%

7.7%

8.6%

9.3%

9.3%

9.5%

2016Q4

0.3%

2.1%

3.8%

5.4%

7.2%

9.2%

10.4%

11.5%

12.4%

12.9%

13.3%

2017Q1

0.3%

1.6%

3.4%

5.3%

7.5%

8.9%

10.0%

10.9%

11.6%

12.1%

12.3%

2017Q2

4.1%

5.8%

7.9%

9.6%

11.3%

12.5%

13.2%

13.9%

14.6%

14.9%

15.1%

2017Q3

0.3%

1.6%

3.5%

4.9%

6.5%

7.6%

8.4%

8.9%

9.4%

9.9%

10.1%

2017Q4

0.2%

2.3%

5.1%

6.5%

7.9%

9.0%

9.7%

10.2%

10.7%

11.2%

10.6%

2018Q1

0.2%

2.9%

5.1%

6.8%

7.2%

7.9%

8.4%

8.7%

9.0%

8.6%

8.1%

2018Q2

0.7%

4.1%

7.1%

9.4%

11.2%

12.4%

13.4%

14.1%

14.3%

14.1%

14.1%

2018Q3

0.2%

2.8%

3.6%

4.5%

5.2%

6.4%

7.0%

7.0%

6.9%

7.0%

6.9%

2018Q4

0.6%

2.2%

3.4%

5.2%

6.9%

9.0%

9.7%

9.9%

9.6%

9.7%

9.7%

2019Q1

0.0%

0.8%

2.0%

3.4%

5.3%

5.9%

6.3%

6.3%

6.3%

6.3%

2019Q2

0.1%

1.5%

4.5%

7.5%

8.8%

9.2%

9.9%

10.3%

10.6%

2019Q3

0.2%

2.9%

6.8%

9.0%

10.4%

12.0%

13.2%

13.8%

2019Q4

0.4%

3.1%

4.9%

6.3%

7.2%

7.9%

8.4%

2020Q1

0.6%

2.3%

4.1%

5.2%

6.0%

6.2%

2020Q2

0.5%

2.5%

4.2%

5.3%

6.1%

2020Q3

1.1%

3.3%

5.1%

6.3%

2020Q4

0.3%

1.8%

3.2%

2021Q1

0.4%

2.3%

2021Q2

0.4%

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