The San Francisco-based company is now reporting an increase in their shares which soared to up to 20% just six months after the company lost its CEO just half a year ago. The jump in the shares of Lending Club was led by its beyond-forecasted report in their third quarter earnings report which was also largely driven by the approval from the National Bank of Canada that the bank would be investing $1.3 billion in the peer lending company.
This comes as a huge headliner since the company lost its CEO just six months ago after their former chief executive Renaud Laplanche stepped down after being involved in a scandal revolving loans that did not meet investor requests and violating their instructions as well. The board of the company then stated that they were not happy with the lack of full disclosure during the review. Aside from Laplanche, a number of other managers and officers were also terminated and asked to resign following the scandal.
Now that the San Francisco-based company has acquired an investment partnership with the National Bank of Canada that would give a $1.3 billion to Lending Club for the following year. The shares of the company jumped as high as 20% during Monday’s early trading before closing to a total of 18% gains.
Following Lending Club’s scandal a few months back, shares of the company dropped to almost 35% posting one of their bigger losses. The drop in the company shares was also largely driven by the resignation of their then CEO Renaud Laplanche who failed to state his own interest in the
Now the company’s shares are posting a jump in their stocks of almost 20% after the partnership with the National Bank of Canada that would give them a $1.3 billion investment for the next twelve months which shows a rebound from their previous losses.
The company’s third quarter report showed an adjusted share loss of only $0.04 per share compared to analysts’ expectations of a $0.07 loss earning $114.56 million in revenue compared to the forecasted estimate of $103.3 million from analysts. The stock which closed at around $5.09 during the previous trading session opened the next day at 5.91.
According to a statement by Lending Club’s current CEO, their latest results were driven by the return of the banks to their platform and their new executive team.