trisigma-appoints-esther-ballart-as-managing-director

Trisigma Appoints Esther Ballart as Managing Director

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Trisigma has appointed Mrs. Esther Ballart to the new position of Managing Director. Esther will be responsible for and drive the business strategies for the offices and gaming test labs in both The Netherlands and Spain, and for the Trisigma activities in other countries.

Trisigma founders Frank Otte and Rob Hubregtse said: “With Esther in this new position we have a solid foundation to set the next step in expanding our compliance services worldwide, and assist our customers to new markets in our appreciated pleasant and efficient way of working.”

Trisigma made an excellent growth since its establishment in 2010 and has been recognised by many European jurisdictions with regard to conformity examinations (testing, inspecting, auditing and more) for gaming regulators and industry. Besides the Dutch and Spanish labs and offices, Trisigma has local professional presence and representatives in various other countries.

loandepot-announces-second-quarter-2021-financial-results

loanDepot announces second quarter 2021 financial results

 

loanDepot, Inc. (NYSE: LDI), (together with its subsidiaries, “loanDepot” or the “Company”), the innovative consumer lending and real estate services provider that is using its proprietary mello® technology to deliver best-in-class experiences to its customers, today announced results for the second quarter ended June 30, 2021.

“Eleven years ago we set out to reshape the mortgage industry with a new, digital-first approach that would thrive across all market conditions. This is why, despite the transition in the mortgage market, we continued to grow in the second quarter with meaningful increases in both market share and purchase loan originations,” said loanDepot Founder and CEO Anthony Hsieh.

“We’ve entered a transitional period and expect to see industry consolidation as some lenders may not be in a position to withstand the headwinds, whereas we are confident and excited for the future. While our revenues were lower on decreased gain on sale margins and rate lock volume during this transitional quarter, our investments and commitment to our core business philosophy continue to fuel our momentum, especially as the industry becomes less fragmented and consumers rightfully demand more robust and integrated products and services from their lender. We will meet and exceed these demands with our just announced loanDepot Grand Slam package that will give homeowners access to real estate, mortgage, title and insurance services within one bundle for their home transaction, increasing ease, speed and peace of mind, all while reducing overall cost to the customer.”

“We can express this confidence,” continued Hsieh, “because our diversified channel strategy, which is the industry’s only at-scale model of this type, and proprietary mello tech stack allow us to continually reduce costs and maximize operational elasticity, so that our loan manufacturing process is true to any given market environment. These unique capabilities, in addition to our world-class, highly-recognized brand and significant top-of-funnel customer acquisition and data matching capabilities ensure that we will continue to grow, responsibly and productively serving our customers, our employees and our shareholders. We are confident we will continue to accelerate our growth, increase our market share and outperform in the long term.”

Current Market Conditions:

The second quarter represented a transitional quarter from the record levels of loan origination volume and profit margins in 2020 into an operating environment characterized by:

  • Lower profit margins resulting from industry overcapacity and increased competitive pressure, particularly in the wholesale partner channel.
  • Higher interest rates resulting in lower refinance transaction volumes.
  • Continuing strong demand for purchase transactions, which is somewhat adversely impacted by supply constraints on new and resale housing.
  • Sharper focus on industry consolidation and expansion of ancillary products and services to capture additional revenue sources and expand customer engagement points.

Second Quarter Highlights:

Financial Summary

Three Months Ended

Six Months Ended

($ in thousands)

(Unaudited)

June 30,

2021

March 31,

2021

June 30,

2020

June 30,

2021

June 30,

2020

Rate lock volume

$

42,065,981

$

45,762,661

$

34,955,604

$

87,828,642

$

61,992,875

Loan origination volume

34,494,166

41,479,151

21,031,543

75,973,317

36,207,130

Gain on sale margin(1)

2.28

%

2.98

%

5.39

%

2.66

%

4.45

%

Pull through weighted gain on sale margin(2)

2.64

%

3.69

%

4.47

%

3.19

%

3.74

%

Financial Results

Total revenue

$

779,914

$

1,316,008

$

1,158,730

$

2,095,922

$

1,644,850

Total expense

749,405

869,878

509,245

1,619,283

906,370

Net income

26,284

427,853

648,595

454,137

737,590

Diluted EPS(3)

$

0.07

$

0.36

N/A

$

0.42

N/A

Non-GAAP Financial Measures(4)

Adjusted total revenue

$

825,330

$

1,241,441

$

1,154,512

$

2,066,770

$

1,654,879

Adjusted net income

57,504

319,527

491,535

377,031

570,227

Adjusted EBITDA

109,264

458,098

682,590

567,361

808,901

Adjusted Diluted EPS

$

0.18

$

0.99

N/A

$

1.16

N/A

(1)

Gain on sale margin represents the total of (i) gain on origination and sale of loans, net, and (ii) origination income, net, divided by loan origination volume during period. Gain on the origination and sale of loans, net was adjusted to exclude the change in fair value of forward sale contracts, including pair-offs, hedging MSRs, which are now included in the change in fair value of servicing rights, net on the consolidated statements of income. The Company determined that this change would more appropriately reflect the hedged item and better align with industry practices. Gain on origination and sale of loans, net and change in fair value of servicing rights, net, in the current and prior periods along with the related disclosures have been adjusted to reflect this reclassification.

(2)

Pull through weighted gain on sale margin represents the total of (i) gain on origination and sale of loans, net, and (ii) origination income, net, divided by the pull through weighted rate lock volume. Pull through weighted rate lock volume is the unpaid principal balance of loans subject to interest rate lock commitments, net of a pull-through factor for the loan funding probability.

(3)

On February 11, 2021, the Company’s common stock began trading on the New York Stock Exchange. Since loanDepot did not have any shares outstanding prior to this date, earnings per share (“EPS”) information was not determinable. The diluted EPS calculation includes net income attributable to loanDepot, Inc. divided by the diluted weighted average shares of Class A and Class D common stock outstanding for the period after February 11, 2021.

(4)

See “Non-GAAP Financial Measures” for a discussion of how we define and calculate Adjusted Total Revenue, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted EBITDA, and for a reconciliation of these metrics to their closest GAAP measure.

Operational Results

  • Rate lock volume of $42.1 billion for the three months ended June 30, 2021 resulted in quarterly total revenue of $779.9 million, which represents a decrease of $536.1 million, or 41%, from the first quarter of 2021.
  • Loan origination volume for the second quarter of 2021 was $34.5 billion, a decrease of $7.0 billion or 17% from the first quarter of 2021.
  • Our Retail and Partner strategies delivered $10.4 billion of purchase loan originations and $24.1 billion of refinance loan originations during the second quarter of 2021.
  • Net income for the second quarter of 2021 decreased to $26.3 million as compared to $427.9 million in the prior quarter. The quarter over quarter decrease was primarily driven by the decline in gain on sale margins and an increase in servicing rights fair value losses, net of hedge.
  • Reflecting the strength of our core business, adjusted EBITDA for the second quarter of 2021 exhibited a smaller decline compared to net income, decreasing to $109.3 million as compared to $458.1 million for the first quarter of 2021. Adjusted EBITDA excludes the impact of fair value changes of our mortgage servicing rights, net of hedging results, and other non-core operating expenses.
  • Total expenses for the second quarter of 2021 decreased by $120.5 million, or 14% from the first quarter of 2021, due primarily to lower variable expenses on loan origination volume and IPO related expenses incurred in the first quarter.

Other Highlights

  • Returned value to shareholders through a regular cash dividend of $0.08 per share paid on July 16, 2021, to shareholders of record on July 1, 2021.
  • Implemented cost cutting initiatives late in the second quarter and early in the third quarter, the results of which we expect to be primarily realized in the second half of 2021. Our technology driven processes allow us to adjust our expenses to changing market conditions, or as demonstrated by our increase in purchase loan originations during the quarter adjust our pipeline to load balance our operational capabilities.
  • Announced the addition of George Brady as Chief Digital Officer and Karin Lockovitch as Chief Risk Officer to our exceptional management team. With the appointments of these highly experienced executives we underscore the Company’s drive to accelerate the pace of innovation, support continued growth, and manage risk.
  • For the second quarter of 2021, our preliminary organic refinance consumer direct recapture rate2 increased to 75% as compared to the final recapture rate of 72% for the first quarter of 2021. This highlights the efficacy of our marketing efforts and the strength of our customer relationships, which includes our growing servicing portfolio that reached a record level of $138.8 billion in unpaid principal balance serviced as of June 30, 2021. This growth was against the backdrop of growing our servicing portfolio in-house and relying relatively less on third party sub-servicing arrangements.
  • Continuing its track record of creating strategically beneficial joint ventures, loanDepot entered into a partnership with Farm Bureau Bank. loanDepot’s streamlined platform makes the Company a partner of choice for home builders and other financial services companies.
  • We believe our position as the second most recognized mortgage brand grew even stronger through our ongoing national television ad campaign delivering over 16 billion household impressions from May 2020 through June 2021. Our extensive data analytics also allowed us to capitalize on the 1.8 million average monthly website visits and 406 million online media exposures during the second quarter of 2021.
  • We firmly believe in our responsibility as corporate citizens to make a positive social impact in the communities in which we work, live and serve. Over the last quarter the Company granted more than $500,000 to organizations across the country, including the Boys & Girls Clubs of America, the Surfside Relief Fund and Turn 2 Foundation.

Strategic Channel Overview
Our diverse origination strategy ensures we can serve customers in the way they want to be served, with the right mortgage professional, with the right product, at the right price, at the right time. Complementing our origination strategy is our servicing portfolio, which ensures we can serve the customer through their entire mortgage journey.

Retail Channel

Three Months Ended

Six Months Ended

($ in thousands)

(Unaudited)

June 30,

2021

March 31,

2021

June 30,

2020

June 30,

2021

June 30,

2020

Volume data:

Rate locks

$

33,925,833

$

37,074,012

$

29,648,516

$

70,999,845

$

51,477,977

Loan originations

27,881,773

33,427,789

17,199,202

61,309,562

28,876,545

Gain on sale margin

2.50

%

3.25

%

5.68

%

2.91

%

4.87

%

The Company employs more than 2,800 licensed mortgage loan professionals who work in our Retail Channel that reach customers through our organic marketing or their own relationships in either our proprietary call centers or local in-market branches. During the second quarter of 2021, our Retail Channel accounted for $27.9 billion, or 81%, of our loan originations.

Partner Channel

Three Months Ended

Six Months Ended

($ in thousands)

(Unaudited)

June 30,

2021

March 31,

2021

June 30,

2020

June 30,

2021

June 30,

2020

Volume data:

Rate locks

$

8,140,148

$

8,688,649

$

5,307,088

$

16,828,797

$

10,514,898

Loan originations

6,612,393

8,051,362

3,832,341

14,663,755

7,330,585

Gain on sale margin

1.32

%

1.85

%

4.07

%

1.61

%

2.81

%

Our Partner Channel originates loans through our network of approved mortgage brokers, as well as a series of exclusive joint ventures with some of the nation’s largest homebuilders and depositories, who market our broad spectrum of products utilizing our innovative mello® technology platform to efficiently underwrite, process and fund mortgage loans, while delivering an exceptional customer experience. During the second quarter of 2021, our Partner Channel accounted for $6.6 billion, or 19%, of our loan originations.

The returns were complemented by $2.9 million of income recorded from our joint ventures for the second quarter of 2021, reflecting the wide variety of industry partners we work with in the channel. We added one new joint venture relationship in the second quarter of 2021 with Farm Bureau Bank.

Servicing

Three Months Ended

Six Months Ended

Servicing Revenue Data:

($ in thousands)

(Unaudited)

June 30,

2021

March 31,

2021

June 30,

2020

June 30,

2021

June 30,

2020

Changes in fair value:

Due to changes in valuation inputs or assumptions

$

(129,267)

$

231,023

$

(22,736)

$

101,757

$

(109,050)

Other changes in fair value(1)

(105,771)

(118,106)

(37,491)

(223,877)

(70,532)

Realized gains (losses) on sales of servicing rights

6,089

(97)

161

5,992

58

Net gain (loss) from derivatives hedging servicing rights

83,851

(156,455)

26,954

(72,605)

99,021

Changes in fair value of servicing rights, net

$

(145,098)

$

(43,635)

$

(33,112)

$

(188,733)

$

(80,503)

Servicing fee income

$

94,742

$

82,568

$

36,551

$

177,309

$

73,114

(1)

Other changes in fair value include fallout and decay from loan payoffs and principal amortization.

Three Months Ended

Six Months Ended

Servicing Rights, at Fair Value:

($ in thousands)

(Unaudited)

June 30,

2021

March 31,

2021

June 30,

2020

June 30,

2021

June 30,

2020

Balance at beginning of period

$

1,766,088

$

1,124,302

$

431,864

$

1,124,302

$

444,443

Additions

427,458

529,543

198,249

957,001

312,367

Sales proceeds, net

(182,113)

(674)

41

(182,788)

(7,301)

Changes in fair value:

Due to changes in valuation inputs or assumptions

(129,267)

231,023

(22,736)

101,757

(109,050)

Other changes in fair value

(105,771)

(118,106)

(37,491)

(223,877)

(70,532)

Balance at end of period (1)

$

1,776,395

$

1,766,088

$

569,927

$

1,776,395

$

569,927

(1)

Balances are net of $5.3 million, $6.0 million, and $2.6 million of servicing rights liability as of June 30, 2021, March 31, 2021 and June 30, 2020, respectively.

% Change

Servicing Portfolio Data:

($ in thousands)

(Unaudited)

June 30,

2021

March 31,

2021

June 30,

2020

Jun – 21

vs

Mar – 21

Jun – 21
vs
Jun – 20

Servicing portfolio (unpaid principal balance)

$

138,767,860

$

129,709,892

$

57,881,342

7.0

%

139.7

%

Total servicing portfolio (units)

446,606

414,540

216,448

7.7

106.3

60+ days delinquent ($)

$

1,976,658

$

2,125,573

$

1,541,273

(7.0)

28.2

60+ days delinquent (%)

1.4

%

1.6

%

2.7

%

Servicing rights, net to UPB

1.3

%

1.4

%

1.0

%

The increase in unpaid principal balance of our servicing portfolio was driven by an increase in servicing-retained loan sales, offset somewhat by a sale of $14.4 billion of unpaid principal balance during the quarter. We continued to invest in growing our high-quality servicing portfolio and not only increased total loan originations but also the percentage of our servicing customers who chose to refinance with us.

As of June 30, 2021, approximately 1.4%, or $1.9 billion, of our servicing portfolio was in active forbearance. This represents a decline from 1.7%, or $2.2 billion, as of March 31, 2021.

Balance Sheet Highlights

% Change

($ in thousands)

(Unaudited)

June 30,
2021

March 31,
2021

June 30,
2020

Jun – 21 vs.
Mar – 21

Jun – 21 vs.
Jun-20

Cash and cash equivalents

$

419,283

$

630,457

$

433,722

(33.5)

%

(3.3)

%

Loans held for sale, at fair value

9,120,653

8,787,756

3,303,438

3.8

176.1

Servicing rights, at fair value

1,781,686

1,772,099

572,542

0.5

211.2

Warehouse and other lines of credit

8,498,365

8,309,450

3,199,682

2.3

165.6

Total liabilities

11,528,809

11,524,327

4,675,710

146.6

Total equity

1,568,834

1,773,958

1,051,224

(11.6)

49.2

The decrease in cash and cash equivalents from March 31, 2021 was primarily due to dividend payments during the quarter. An increase in loans held for sale at June 30, 2021, resulted in a corresponding increase in the balance on our warehouse lines of credit. Total funding capacity with our lending partners decreased to $9.5 billion at June 30, 2021 from $10.3 billion at March 31, 2021. The decrease of $0.9 billion was primarily due to a decrease in temporary commitments on existing facilities from lower loan originations during the quarter. Available borrowing capacity was $0.9 billion at June 30, 2021.

Consolidated Statements of Operations

($ in thousands)

Three Months Ended

Six Months Ended

June 30,
2021

March 31,
2021

June 30,
2020

June 30,
2021

June 30,
2020

(Unaudited)

(Unaudited)

REVENUES:

Interest income

$

61,874

$

54,730

$

31,530

$

116,605

$

66,696

Interest expense

(54,848)

(53,497)

(26,523)

(108,346)

(59,328)

Net interest income

7,026

1,233

5,007

8,259

7,368

Gain on origination and sale of loans, net

692,479

1,133,575

1,076,410

1,826,054

1,515,999

Origination income, net

92,624

101,599

57,201

194,223

95,813

Servicing fee income

94,742

82,568

36,551

177,309

73,114

Change in fair value of servicing rights, net

(145,098)

(43,635)

(33,112)

(188,733)

(80,503)

Other income

38,141

40,668

16,673

78,810

33,059

Total net revenues

779,914

1,316,008

1,158,730

2,095,922

1,644,850

EXPENSES:

Personnel expense

470,125

603,735

340,716

1,073,861

580,915

Marketing and advertising expense

114,133

109,626

55,881

223,759

113,193

Direct origination expense

50,017

46,976

28,658

96,993

55,161

General and administrative expense

48,654

51,317

38,566

99,972

68,195

Occupancy expense

9,283

9,988

9,547

19,270

19,440

Depreciation and amortization

8,686

8,454

9,165

17,139

18,537

Subservicing expense

27,241

26,611

16,087

53,851

29,334

Other interest expense

21,266

13,171

10,625

34,438

21,595

Total expenses

749,405

869,878

509,245

1,619,283

906,370

Income before income taxes

30,509

446,130

649,485

476,639

738,480

Income tax expense

4,225

18,277

890

22,502

890

Net income

26,284

427,853

648,595

454,137

737,590

Net income attributable to noncontrolling interests

17,723

382,978

648,595

400,701

737,590

Net income attributable to loanDepot, Inc.

$

8,561

$

44,875

$

$

53,436

$

Basic EPS

$

0.07

$

0.36

N/A

$

0.42

N/A

Diluted EPS

$

0.07

$

0.36

N/A

$

0.42

N/A

Consolidated Balance Sheets

($ in thousands)

June 30,
2021

March 31,
2021

December 31,
2020

(Unaudited)

ASSETS

Cash and cash equivalents

$

419,283

$

630,457

$

284,224

Restricted cash

217,435

121,389

204,465

Accounts receivable, net

65,185

84,047

138,122

Loans held for sale, at fair value

9,120,653

8,787,756

6,955,424

Derivative assets, at fair value

349,621

760,519

647,939

Servicing rights, at fair value

1,781,686

1,772,099

1,127,866

Trading securities, at fair value

16,757

Property and equipment, net

98,686

91,007

85,002

Operating lease right-of-use asset

60,123

63,207

66,433

Prepaid expenses and other assets

94,814

84,804

77,241

Loans eligible for repurchase

812,431

842,970

1,246,158

Investments in joint ventures

18,398

17,332

17,528

Goodwill and other intangible assets, net

42,571

42,698

42,826

        Total assets

$

13,097,643

$

13,298,285

$

10,893,228

LIABILITIES AND EQUITY

LIABILITIES:

Warehouse and other lines of credit

$

8,498,365

$

8,309,450

$

6,577,429

Accounts payable and accrued expenses

607,767

890,826

446,370

Derivative liabilities, at fair value

58,805

95,188

168,169

Liability for loans eligible for repurchase

812,431

842,970

1,246,158

Operating lease liability

78,132

80,804

86,023

Debt obligations, net

1,473,309

1,305,089

712,466

        Total liabilities

11,528,809

11,524,327

9,236,615

EQUITY:

Total equity

1,568,834

1,773,958

1,656,613

Total liabilities and equity

$

13,097,643

$

13,298,285

$

10,893,228

Loan Origination and Sales Data

($ in thousands)

(Unaudited)

Three Months Ended

June 30,
2021

March 31,
2021

June 30,
2020

Loan origination volume by type:

Conventional conforming

$

27,933,929

$

35,169,216

$

16,126,362

FHA/VA/USDA

4,231,466

5,081,972

4,284,593

Jumbo

2,057,466

1,002,619

309,246

Other

271,305

225,344

311,342

Total

$

34,494,166

$

41,479,151

$

21,031,543

Loan origination volume by channel:

Retail

$

27,881,773

$

33,427,789

$

17,199,202

Partnership

6,612,393

8,051,362

3,832,341

Total

$

34,494,166

$

41,479,151

$

21,031,543

Loan origination volume by purpose:

Purchase

$

10,382,964

$

7,916,512

$

5,547,004

Refinance

24,111,202

33,562,639

15,484,539

Total

$

34,494,166

$

41,479,151

$

21,031,543

Loans sold:

Servicing retained

$

30,981,299

$

37,435,791

$

19,962,203

Servicing released

3,309,151

2,492,886

1,323,509

Total

$

34,290,450

$

39,928,677

$

21,285,712

Loan origination margins:

Gain on sale margin

2.28

%

2.98

%

5.39

%

Second Quarter Earnings Call
Management will host a conference call and live webcast today at 11:00 a.m. ET on loanDepot’s Investor Relations website, investors.loandepot.com, to discuss its earnings results.

The conference call can also be accessed by dialing 833-312-1365 (domestic) or 236-712-2485 (international) using pin number 8675562. Please call five minutes in advance to ensure that you are connected prior to the call. A replay of the webcast and transcript will also be made available on the Investor Relations website following the conclusion of the event.

For more information about loanDepot, please visit the company’s Investor Relations website: investors.loandepot.com.

Non-GAAP Financial Measures
To provide investors with information in addition to our results as determined by GAAP, we disclose Adjusted Total Revenue, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted EBITDA as non-GAAP measures. We believe Adjusted Total Revenue, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted EBITDA provide useful information to investors regarding our results of operations because each measure assists both investors and management in analyzing and benchmarking the performance and value of our business. They facilitate company-to-company operating performance comparisons by backing out potential differences caused by variations in hedging strategies, changes in valuations, capital structures (affecting net interest expense), taxation, the age and book depreciation of facilities (affecting relative depreciation expense) and the amortization of intangibles, which may vary for different companies for reasons unrelated to operating performance, as well as certain historical cost (benefit) items which may vary for different companies for reasons unrelated to operating performance. These measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for revenue, net income, or any other operating performance measure calculated in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies.

We define “Adjusted Total Revenue” as total revenues, net of the change in fair value of mortgage servicing rights (“MSRs”) and the related hedging gains and losses. We define “Adjusted Net Income” as tax-effected earnings before change in fair value of contingent consideration, stock compensation expense and management fees, IPO expense, and the change in fair value of MSRs, net of the related hedging gains and losses, and the tax effects of those adjustments. We define “Adjusted Diluted EPS” as Adjusted Net Income divided by the diluted weighted average number of shares of Class A common stock and Class D common stock outstanding for the applicable period, which assumes the proforma exchange of all outstanding Class C common shares for shares of Class A common stock. We define “Adjusted EBITDA” as earnings before interest expense and amortization of debt issuance costs on non-funding debt, income taxes, depreciation and amortization, change in fair value of MSRs, net of the related hedging gains and losses, change in fair value of contingent consideration, stock compensation expense and management fees, and IPO related expense. Adjustments for income taxes are made to reflect historical results of operations on the basis that it was taxed as a corporation under the Internal Revenue Code, and therefore subject to U.S. federal, state and local income taxes. We exclude from each of these non-GAAP measures the change in fair value of MSRs and related hedging gains and losses as this represents a non-cash non-realized adjustment to our total revenues, reflecting changes in assumptions including discount rates and prepayment speed assumptions, mostly due to changes in market interest rates, which is not indicative of our performance or results of operations. We also exclude stock compensation expense, which is a non-cash expense, management fees and IPO expenses as management does not consider these costs to be indicative of our performance or results of operations. Adjusted EBITDA includes interest expense on funding facilities, which are recorded as a component of “net interest income (expense)”, as these expenses are a direct operating expense driven by loan origination volume. By contrast, interest and amortization expense on non-funding debt is a function of our capital structure and is therefore excluded from Adjusted EBITDA.

Adjusted Total Revenue, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted EBITDA have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. Some of these limitations are:

  • they do not reflect every cash expenditure, future requirements for capital expenditures or contractual commitments;
  • Adjusted EBITDA does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payment on our debt;
  • although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced or require improvements in the future, and Adjusted Total Revenue, Adjusted Net Income, and Adjusted EBITDA do not reflect any cash requirement for such replacements or improvements; and
  • they are not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows.

Because of these limitations, Adjusted Total Revenue, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted EBITDA are not intended as alternatives to total revenue, net income (loss), net income attributable to the Company, or Diluted EPS or as an indicator of our operating performance and should not be considered as measures of discretionary cash available to us to invest in the growth of our business or as measures of cash that will be available to us to meet our obligations. We compensate for these limitations by using Adjusted Total Revenue, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted EBITDA along with other comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance. See below for a reconciliation of these non-GAAP measures to their most comparable U.S. GAAP measures.

Reconciliation of Total Revenue to Adjusted Total Revenue

($ in thousands)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,
2021

March 31,
2021

June 30,
2020

June 30,
2021

June 30,
2020

(Unaudited)

(Unaudited)

Total net revenue

$

779,914

$

1,316,008

$

1,158,730

$

2,095,922

$

1,644,850

Change in fair value of servicing rights, net of hedging gains and losses(1)

45,416

(74,567)

(4,218)

(29,152)

10,029

Adjusted total revenue

$

825,330

$

1,241,441

$

1,154,512

$

2,066,770

$

1,654,879

(1)

Represents the change in the fair value of servicing rights attributable to changes in assumptions, net of hedging gains and losses.

Reconciliation of Net Income to Adjusted Net Income

($ in thousands)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,
2021

March 31,
2021

June 30,
2020

June 30,
2021

June 30,
2020

Net income attributable to loanDepot, Inc.

$

8,561

$

44,875

$

$

53,436

$

Net income from the pro forma conversion of Class C common shares to Class A common shares (1)

17,723

382,978

648,595

400,701

737,590

Net income

$

26,284

$

427,853

$

648,595

$

454,137

$

737,590

Adjustments to the provision for income taxes(2)

(4,684)

(101,221)

(166,948)

(105,905)

(189,856)

Tax-effected net income

21,600

326,632

481,647

348,232

547,734

Change in fair value of servicing rights, net of hedging gains and losses(3)

45,416

(74,567)

(4,218)

(29,152)

10,029

Change in fair value – contingent consideration

10,473

12,980

Stock compensation expense and management fees

2,126

60,076

7,060

62,202

7,280

IPO expenses

1,261

4,834

6,095

Tax effect of adjustments(4)

(12,899)

2,552

(3,427)

(10,346)

(7,796)

Adjusted net income

$

57,504

$

319,527

$

491,535

$

377,031

$

570,227

(1)

Reflects net income to Class A common stock and Class D common stock from the pro forma exchange of Class C common stock.

(2)

loanDepot, Inc. is subject to federal, state and local income taxes. Adjustments to income tax (benefit) reflect the effective income tax rates below, and the pro forma assumption that loanDepot, Inc. owns 100% of LD Holdings.

Three Months Ended

Six Months Ended

June 30,
2021

March 31,
2021

June 30,
2020

June 30,
2021

June 30,
2020

Statutory U.S. federal income tax rate

21.00

%

21.00

%

21.00

%

21.00

%

21.00

%

State and local income taxes (net of federal benefit)

5.43

%

5.43

%

4.74

%

5.43

%

4.74

%

Effective income tax rate

26.43

%

26.43

%

25.74

%

26.43

%

25.74

%

(3)

Represents the change in the fair value of servicing rights attributable to changes in assumptions, net of hedging gains and losses.

(4)

Amounts represent the income tax effect of (a) change in fair value of servicing rights, net of hedging gains and losses, (b) change in fair value of contingent consideration (c) stock compensation expense and management fees, and (d) IPO expense at the aforementioned effective income tax rates.

Reconciliation of Adjusted Diluted Weighted Average Shares Outstanding to Diluted Weighted Average Shares Outstanding(1)

($ in thousands except per share)

(Unaudited)

Three Months Ended

Six Months
Ended

June 30,
2021

March 31,
2021

June 30,
2021

Net income attributable to loanDepot, Inc.

$

8,561

$

44,875

$

53,436

Adjusted net income

57,504

319,527

377,031

Share Data:

Diluted weighted average shares of Class A and Class D common stock outstanding

126,726,876

125,772,797

126,392,949

Assumed pro forma conversion of Class C shares to Class A common stock (2)

196,741,703

198,537,418

197,366,213

Adjusted diluted weighted average shares outstanding

323,468,579

324,310,215

323,759,162

Diluted EPS

$

0.07

$

0.36

$

0.42

Adjusted Diluted EPS

0.18

0.99

1.16

(1)

This non-GAAP measures was not applicable for the three or six months ended June 30, 2020 as the IPO and reorganization transaction had not yet occurred.

(2)

Reflects the assumed pro forma conversion of all outstanding shares of Class C common stock to Class A common stock.

Reconciliation of Net Income to Adjusted EBITDA

($ in thousands)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,
2021

March 31,
2021

June 30,
2020

June 30,
2021

June 30,
2020

Net income

$

26,284

$

427,853

$

648,595

$

454,137

$

737,590

Interest expense – non-funding debt (1)

21,266

13,171

10,625

34,438

21,595

Income tax expense

4,225

18,277

890

22,502

890

Depreciation and amortization

8,686

8,454

9,165

17,139

18,537

Change in fair value of servicing rights, net of

hedging gains and losses(2)

45,416

(74,567)

(4,218)

(29,152)

10,029

Change in fair value – contingent consideration

10,473

12,980

Stock compensation expense and management fees

2,126

60,076

7,060

62,202

7,280

IPO expense

1,261

4,834

6,095

Adjusted EBITDA

$

109,264

$

458,098

$

682,590

$

567,361

$

808,901

(1)

Represents other interest expense, which includes amortization of debt issuance costs, in the Company’s consolidated statement of operations.

(2)

Represents the change in the fair value of servicing rights attributable to changes in assumptions, net of hedging gains and losses.

Forward-Looking Statements
This press release may contain “forward-looking statements,” which reflect loanDepot’s current views with respect to, among other things, its operations and financial performance. You can identify these statements by the use of words such as “outlook,” “potential,” “continue,” “may,” “seek,” “approximately,” “predict,” “believe,” “expect,” “plan,” “intend,” “estimate” or “anticipate” and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as “will,” “should,” “would” and “could.” These forward-looking statements are based on current available operating, financial, economic and other information, and are not guarantees of future performance and are subject to risks, uncertainties and assumptions, including the risks in the “Risk Factors” section of loanDepot, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2020, which are difficult to predict. Therefore, current plans, anticipated actions, financial results, as well as the anticipated development of the industry, may differ materially from what is expressed or forecasted in any forward-looking statement. loanDepot does not undertake any obligation to publicly update or revise any forward-looking statement to reflect future events or circumstances, except as required by applicable law.

how-iqoo’s-hunt-for-india’s-next-big-gaming-streamer-became-the-biggest-platform-to-spotlight-upcoming-streamers-across-2.5k+-participating-youtube-channels-and-2m+-live-audiences

How iQOO’s Hunt For India’s Next Big Gaming Streamer became the biggest platform to spotlight upcoming streamers across 2.5k+ participating YouTube channels and 2M+ live audiences

Reading Time: 4 minutes

Gamers and streamers are burgeoning in the country and the numbers are increasing exponentially. This new behavioural change is a trend watched closely by platforms and brands since the audience for these streamers are the most coveted – youth. Engagement rates are unique to just this medium.

There are stories of gamers and streamers from modest backgrounds who have made it big by being good at two things – esports and entertainment. So what is a “raid?” A raid is when a YouTuber/ Streamer with a significant following, asks his/ her viewers to go and watch another creator’s live stream. Case in point –  GamerFleet. A young man from Haldwani, Uttarakhand who was streaming to double digit audiences when he was ‘raided’ by Samay Raina. After the raid, he continued to grow organically not just because of his personality and collaboration with Samay Raina and Tanmay Bhat. Cut to a few months later and GamerFleet has over a million subscribers. This is the beauty of a ‘raid’.

So Raid Nights was born. This is the brainchild of Tanmay Bhat in partnership with iQOO – a phone company that puts the gamer before the game. The idea was executed by OML Entertainment with technical partners – Sky eSports. This property was only possible by the power of the platform that is YouTube. Tanmay Bhat, Samay Raina and GamerFleet have been online every Friday evening for the last one month with their new live-streaming property,  iQOO Raid Nights. The three content creators (Also known as raid bosses) presented a once in a lifetime opportunity to aspiring gaming streamers where they would raid the YouTube channels of upcoming streamers asking their subscribers to tune in and watch the live-stream of the channel they would raid, resulting in the aspiring creators seeing increase in live-streaming numbers like never before.

 

Here’s how iQOO Raid Nights happened.

Every Friday from 25th June to 23rd July there were 4 rounds of qualifiers and a grand finale. Participants would stream live on their YouTube channel using the hashtag #iQOORaidNights and the raid bosses would randomly pick and choose which channel they wanted to raid. 2.4k YouTube channels garnered over 8.9k user-generated videos in this time, hoping they would get “raided.”  The winners were chosen via a YouTube poll where the audience voted for their favourite performers. Two winners from each qualifier episode won a cash prize of Rs. 20,000 and an iQOO 7 Legend phone. There were super interesting performances and channels that the viewers came across. Some channels that captured people’s imagination were Gamer Mummy – A mother of two young adults who streams Minecraft everyday, kukZy Gaming – a gamer who also raps and beatboxes while playing the piano at the same time, Matata QHouse – who did hybrid dance performances with a mix of pre-recorded footage, visual effects and live webcam.

The winner of the first edition of iQOO Raid Nights was Mechanical Pandey – an entertainer who did a rap and dance performance. He also performed a short sketch of him doing random things and being beaten up by his mother which got huge laughs from the audience. The winner got a gaming setup worth Rs. 2,50,000 as the grand prize. The runner-ups were Shiny Kash – A gamer + rapper and The He Man Show – A streamer who lives in his shop and streams every night. He had created special art pieces for iQOO Raid Nights featuring the faces of the raid bosses.

iQOO Raid Nights was hosted by Tanmay Bhat, Samay Raina and GamerFleet on their respective YouTube Channels and was coordinated and executed by OML Entertainment.

Quotes:

Tanmay Bhat – Raid Nights is something that I’ve always wanted to do at scale. It was great to see that brands like iQOO and YouTube supported this property. The creativity that some streamers bring to the table is something that the audience must discover. One of my favourite channels from this edition was Matata QHouse. Their creativity and performance in the qualifiers just blew my mind

Samay Raina – Live Streaming suddenly grew during Covid quarenatines and many creators tried to showcase their characters and personas on stream although they couldn’t reach out to more people.  I’m glad iQOO Raid Nights helped these creators gain a massive amount of reach and an opportunity to showcase their talent. It was a great feeling watching people showcase their unique, unrecognised talent everytime we would raid them. Much love to iQOO for supporting us with this property

GamerFleet – One day I was just randomly streaming with about 500 views and suddenly it shot up to 5,000. That was when Tanmay Bhat raided me as a part of the initial stages of Raid Nights a few months ago. That particular raid helped me garner a lot more reach than usual and then a lot of people started following my content and started tuning in live while I stream. This is exactly what iQOO Raid Nights did with all the streamers who were a part of it. When you have a small channel and your watching increases, the YouTube algorithm sees that the channel is performing better and it recommends the channel more often. I really loved all the channels we raided, but Matata QHouse was my favourite one

Mechanical Pandey (Winner) – iQOO Raid Nights helped me quite a lot in terms of expanding my reach and discovering my creative abilities. I’m glad to have been a part of this wonderful event and I also believe Tanmay-bhai and Samay-bhai would want to stream with me in the future which I’m really looking forward to. My YouTube numbers increased tremendously and I’m glad a lot of people have now discovered me and my craziness. I’d really like to thank all the people who voted for me, and primarily Tanmay-bhai, Samay-bhai and Fleet-bhai for tuning in to my channel in the middle of all the 1500 channels that were streaming in the week I had participated, and giving me an opportunity to entertain and bring smiles on about 1 lakh people’s faces across 2 streams. I’m super excited to get my hands on the new gaming setup that I’ve won.

Gunjan Arya (CEO, OML Entertainment Pvt. Ltd.) – We are always on the lookout for upcoming talent that we can support, and have been bullish on online gaming for some time now. We’re super thrilled to have partnered with iQOO and YouTube in a way that is not only rewarding for the brand and the platform but for the online gaming space as a whole. The power of Creators + Brand + Platform really came together for a proper OP moment. Tanmay’s guidance and the super Samay and GamerFleet to boot have been invaluable collaborators. We came across a lot of new streamers including the incredible Gamer Mummy through the campaign and we will continue to do a lot more of this.

ixblue-announces-strategic-partnership-with-rdml-tim-gallaudet-to-strengthen-its-growing-presence-in-the-us.

iXblue announces strategic partnership with RDML Tim Gallaudet to strengthen its growing presence in the U.S.

 

iXblue, Inc. and iXblue Defense Systems announced today that they have formed a strategic partnership with Rear Admiral (RDML) Timothy Gallaudet through his marine technology consulting agency, Ocean STL Consulting. With this partnership, iXblue and RDML Tim Gallaudet will be advancing iXblue’s growing market presence in the U.S. in the fields of maritime autonomy, navigation and positioning for both defense and the private sectors.

“Tim is a great addition to our teams. He brings a nationally recognized reputation and record of success at the highest levels of government, academia, and the private sector,” states Marine Slingue VP at iXblue, Inc. “His comprehensive technical knowledge of oceanography and navigation, as well as extensive experience in the field in the US Navy and with NOAA will be of great value to iXblue.”

RDML Tim Gallaudet recently retired from the National Oceanic and Atmospheric Administration (NOAA), where he served as the Assistant Secretary of Commerce for Oceans and Atmosphere and Deputy Administrator, advancing the American Blue Economy activities that pushed forward marine transportation, sustainable seafood, ocean exploration and mapping, marine tourism and recreation, as well as coastal resilience.

Before joining NOAA, he served for 32 years in the U.S. Navy, completing his service in 2017 as the Oceanographer of the Navy. His lifelong commitment to education, science, service, and stewardship has brought him a wealth and knowledge and a stellar reputation. RDML Gallaudet holds a Bachelor’s Degree from the U.S. Naval Academy and a Master’s and Doctorate Degree from Scripps Institution of Oceanography, all in oceanography.

“RDML Tim Gallaudet has been at the forefront leading the efforts to advance science and technology strategies for Artificial Intelligence and Unmanned Systems,” states Ted Curley, President and General Manager at iXblue Defense Systems. “His knowledge of the maritime industry and his familiarity with iXblue makes him a perfect partner in our goal to strengthen and grow our presence in the U.S. defense market.”

“Marine mapping is critical to advancing our understanding, the health, and the sustainable use of our oceans, and iXblue brings a capability to do this like none I have ever seen,” said RDML Gallaudet. “As a lifelong champion of ocean science and technology, I could not be more thrilled to partner with iXblue.”

ec-rejects-call-to-reform-expert-group-on-gambling

EC Rejects Call to Reform Expert Group on Gambling

Reading Time: 2 minutes

 

The European Commission (EC) has stated that will not support the re-establishment of an “Expert Group on Online Gambling” – a cross member state collaborative body supported by 14 regulatory agencies.

Dutch gambling regulator Kansspelautoriteit (KSA) published the EC’s response to a letter sent by KSA Chairman Rene Jansen on behalf of European regulators requesting to reinstate the group which had been decommissioned in 2018.

Regulators backed the reinstatement of an Expert Group to exchange knowledge and best practices with regards to governing gambling and protecting national consumers from risks and harms.

Jansen’s letter further stated that regulatory cooperation was required to secure greater oversight on technical requirements and to better evaluate the legislative outcomes of member-states governing their regulated gambling marketplaces.

“The work of the Expert Group was particularly successful. We achieved results that benefited consumers, national authorities and the gambling sector and the active participation in the group also demonstrated that member states are well equipped and willing to achieve positive outcomes together. And we still believe this to be the case,” Jansen said.

Issuing a response, the office of European Commissioner Thierry Breton referred to the EC’s original verdict to decommission the group taken in December 2017.

The expert group was deemed as no longer viable following the European Court of Justice (ECJ) arbitrating 30 cases related to gambling, in which all casework stated that national regulations superseded EU rules.

The EC underscored that gambling laws and standards would be maintained as the domain of the individual member state – which can choose to apply its legislative preferences to taxation, the licensing of market incumbents, industry standards and how a member state should protect its national consumers from harms.

The Commission can only intervene on member-states gambling laws if they are deemed to have breached the wider EU policies on market competition, fair business policies and state aid rules.

Replying to Jansen’s concerns, the EC responded that gambling regulators had the support of individual policy units carrying comprehensive oversight on “anti-money laundering (DG FISMA), consumer and youth protection (DG JUST), the prevention of addiction (DG SANTE) or issues of taxation (DG TAXUD)”.

“At this stage, our Directorate General does not intend to reverse this decision and to reinstate the Expert Group on Gambling Services under its responsibility,” the EC letter concluded.

f1-esports-comes-to-ea-games-in-mobile-racing-game-with-huge-prizes-up-for-grabs

F1® Esports Comes to EA Games in Mobile Racing Game With Huge Prizes Up for Grabs

Reading Time: 2 minutes

 

  • First F1® Esports tournament comes to Real Racing 3 game this August
  • Exclusive prizes up for grabs, including the chance to attend a Grand Prix
  • Update will also see new F1® 2021 liveries added to the game

    For the first time ever, fans will be able to compete in an F1® Esports tournament from 3 August in partnership with Firemonkeys Studio, an Australian-based creative studio of Electronic Arts (EA). Players of Real Racing 3, the mobile game that has set a new standard for simulation racing games, will get the chance to win exclusive prizes in the latest update, including tickets to the Grand Prix.

    3 August also sees the launch of the third season of Formula 1® content in Real Racing 3, bringing the latest F1® 2021 liveries and drivers to the game, so fans can download and play the most up-to-date cars, tracks and events.

    “Formula 1 is the biggest motorsport in the world, and we are excited to continue to bring not only the most authentic Formula 1 content on mobile to Real Racing 3, but also the world-first F1 RR3 Esports Global Challenge to our players and fans,” says Joe Donoghue, General Manager of Firemonkeys Studio.

    Ellie Norman, Director of Marketing and Communications at Formula 1®, commented: “We’re very excited to be bringing F1 Esports to Real Racing 3, as we continue to build our presence within the mobile gaming landscape. We hope the competition will see more people than ever before engage with F1 Esports on mobile as they battle it out for fantastic prizes.”

    The F1® Esports tournament will run from 3-24 August and is the latest move from Formula 1® as it continues to explore and expand in the mobile gaming and esports space. Players will take part in a bespoke esports event to try and win the unique F1® R3 Esports Challenger vehicle, which can then be entered into the brand new F1® Esports time-trial event.

    Those entered into the new F1® Esports event, will have the chance to win a selection of exclusive prizes, including tickets to a Grand Prix.

canaan-announces-customer-order-of-4,000-bitcoin-mining-machines

Canaan Announces Customer Order of 4,000 Bitcoin Mining Machines

 

Canaan Inc. (NASDAQ: CAN) (“Canaan” or the “Company”), a leading high-performance computing solutions provider, today announced that it has received from HIVE Blockchain Technologies Ltd. (“HIVE”) a purchase order (the “Order”) for 4,000 bitcoin mining machines with an aggregate operating hash power of 272 Petahash per second (“PH/s”). According to the terms of the Order, the Company will deliver the mining machines in two tranches over the next 60 days, including 2,000 machines in August 2021 and 2,000 machines in September 2021.

This order is an addition to HIVE’s previous order placed earlier this year for 6,400 Canaan AvalonMiner 1246 Miners with an aggregate operating hash power of 576 PH/s.

Headquartered in Vancouver, Canada, HIVE is the first cryptocurrency mining company with a green energy and ESG strategy. With data center facilities in CanadaSweden, and Iceland, HIVE aims to build a bridge between traditional capital markets and the digital currency and blockchain industry. HIVE is currently listed in the Toronto Stock Exchange, Nasdaq Stock Market, and Frankfurt Stock Exchange.

Mr. Nangeng Zhang, Chairman and Chief Executive Officer of Canaan, commented, “The order from HIVE is a testament to the performance of our mining machines as well as our ability to form long-term and mutually beneficial miner relationships. With compelling computing power and impressive cost-efficiency, we look forward to continued corporations with our mining company clients to jointly capitalize the enormous opportunities from the fast-growing cryptocurrency industry.”

thunes-adds-costa-rica-to-its-network,-expands-latin-american-coverage

Thunes Adds Costa Rica to its Network, Expands Latin American Coverage

 

Thunes a leader in global cross-border payments, and Teledolar, a major fintech player in Central America, today announced a partnership that makes payments simple, fast, more transparent and cost-effective for customers and businesses sending money to Costa Rica. The addition of Costa Rica to Thunes’ already well-established global network, increases its Latin America coverage to 12 countries.

Costa Rica is home to a hotbed of process outsourcing businesses offering telemarketing, call center and technical support. The partnership with Teledolar gives Thunes’ global customers a quicker way to make payouts to the businesses in Costa Rica and fund transfers can be made in real-time to all bank accounts via the local Automated Clearing House (ACH) system.

For example, a US-based software development business will now be able to pay technical support staff in Costa Rica instantly while Costa Rican businesses will have access to global markets, allowing them to receive payments directly from around the world.

“We are thrilled to add Costa Rica to our network through the Teledolar partnership. We’re seeing demand growing rapidly for Latin America and we’re excited to address this opportunity. This addition means we now have coverage in 12 markets in Latin America, enabling millions of people to benefit from faster and more reliable cross-border transactions. Thunes is driving access and affordability of financial services in the world’s fastest growing economies,” said Andrew Stewart, Global Head of Networks, Thunes.

Thunes’ mission is to build a bigger and better payment network that interconnects financial institutions and businesses in developed and developing markets and allows any payment player to transfer money across borders instantly without the need for countless integrations to multiple systems.

“Increasingly, consumers and businesses in Costa Rica are seeking more seamless, efficient and secure ways to receive digital payments from overseas. Teledolar strives to meet the evolving needs of our customers for global wire transfers and payments through this partnership with Thunes. We also plan to extend the new service to our customers in Nicaragua soon,” said Juan Carlos Bedoya, CEO of Teledolar.

trunarrative-celebrates-the-3-year-anniversary-of-its-financial-crime-and-decisioning-platform-with-a-new-look

TruNarrative celebrates the 3 year anniversary of its financial crime and decisioning platform with a new look

Reading Time: 2 minutes

 

Leeds based RegTech firm, TruNarrative are celebrating the third anniversary of its platform which has transformed the way businesses; onboard their customers, ensure compliance with regulation and prevent financial crime.

Marking the occasion, TruNarrative unveils a new look, to ensure its brand reflects their innovative, forward-thinking technology and prepares the company for future growth.

TruNarrative was founded in 2017 through a partnership between Yorkshire Fintech Entrepreneur, John Lord and Larry Smith, a high-net-worth serial technology entrepreneur from California.

The founding team included, John, Ryan Morrison, Mike Harriss and Dave Eastaugh – industry experts with over 100 years of combined experience in the data and technology space, had all previously worked together at GB group plc, where John was the group managing director.

Their mission was to create a unifying platform for workflow, orchestration & decisioning for the prevention of financial crime, available to businesses of all sizes through Software-as-a-Service (SaaS) and Data-as-a-Service (DaaS) technology.

TruNarrative now boasts sales exceeding eight figures and has many high-profile customers including some of the world’s largest challenger banks, gambling organisations and leading payment services businesses.

TruNarrative’s customers benefit from the latest AI-driven Onboarding, Risk Rating and Transaction Monitoring technology for Fraud Prevention, and Anti-Money Laundering (AML).

Delivered through their cloud-based SaaS, TruNarrative’s Risk & Financial Crime platform has close partnerships with over 100 pre-integrated third-party data sources covering 150+ countries.

In February of this year, TruNarrative also launched a simplified version of their technology, serving high street professional services, and have customers across accountants, lawyers, estate agents and procurement managers.

The Technology firm currently employees over 60+ people in their Leeds office, and is set to expand significantly within the next twelve months.

Unveiled in July, the rebrand sees TruNarrative make significant aesthetic changes across their product logo, website and marketing collateral.

“4 years ago my team and I had an idea, that financial crime, customer onboarding and compliance could be orchestrated in a single SaaS solution. That idea has now grown into one of the UK’s leading RegTech firms, employing 60+ in our office above Leeds Kirkgate Market.” John Lord, Chief Executive Officer & Co-founder at TruNarrative

capital-trust-announces-ptc-transaction-of-about-inr-280-million-with-u-gro-capital-limited

Capital Trust announces PTC Transaction of about INR 280 Million with U GRO Capital Limited

 

Capital Trust Limited (Capital Trust), a digitally enabled non-banking finance company (NBFC), specialising in providing income generating micro business loans in tier 3-5 regions, today announced that it has entered into PTC (Pass Through Certificates) transaction with U GRO Capital Limited, a technology focused small business lending platform.

This is the first time U GRO Capital and Capital Trust have come together for a PTC transaction of about INR 280 million, with amortisation of the pool tenure of 20 months. The instrument is rated BBB+ by ICRA Limited. The tie up will allow Capital Trust to enhance its liquidity and build a strong capital base. The loans underlying the pool will have monthly instalments with original maturity of up to 3 years. With this tie up, Capital Trust will be able to expand its credit portfolio of income generating micro loans among rural India’s underserved population.

Commenting on this development, Mr. Yogen Khosla, Chairman and Managing Director, Capital Trust Limited, said, This transaction is in line with Capital Trust’s balance sheet light business growth model and will help the company expand its lending portfolio at a faster pace without additional burden on the books of the company. The arrangement will enable Capital Trust to expand its digital lending footprint to Tier 3-5 regions primarily in Northern India. The company will continue to enter into such tie ups in near term which will help in building a strong capital base with high liquidity.”