Investor Presentaiton
Off-balance sheet loans (1)
Key account items related to credit risk
1Q 2021
(RMB mm)
Guarantee income
659
Income
Statement
Credit losses for
quality assurance
-445
commitment
Mar 31, 2021
(RMB mm)
Restricted cash
(Quality Assurance)
1,639
Represents the release of deferred guarantee income as loans and
their related risks are reduced. The deferred guarantee income is
released systematically over the term of the loans subject to quality
assurance commitment.
Represents expected life time credit losses related to our quality
assurance commitment to institutional partners.
Represents the residual amounts in quality assurance accounts after
receipt of quality assurance contributions, payouts made to
compensate for delinquent loan principal and interest, and amounts
recovered from defaulted borrowers.
"
Quality assurance
1,105
receivable
The Company determines for each loan the guarantee fee, or quality
assurance contributions required from each borrower.
Such fees or contributions are collected on a monthly basis.
Balance
A quality assurance receivable is recognized at loan inception at fair
value, which takes into account the expected default rate.
Sheet
Expected credit
losses for quality
Represents the expected future payouts we would be required to make
under our quality assurance commitment to investors.
2,651
assurance
commitment
As % of Total Revenues
31%
As % of Total Assets
11%
7%
As % of Total Liabilities
43%
Deferred guarantee
1,262
income
After adoption of ASC 326, the deferred guarantee income are
released as a revenue systematically over the term of the loans
subject to quality assurance commitment.
20%
(1) Mainly loans facilitated on our marketplace by institutional partners (banks, consumer finance companies, and other financial institutions).
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