E-Loan, Inc. (EELN) gained 0.78 to 2.38 Wednesday after the online lending companysaid auto loan volume in the fourth quarter rose to a record US$320 million.The Dublin, California-based company said it originated 15,671 auto loans inthe quarter, up 190 percent from a year earlier and 70 percent ahead of thethird quarter.
E-Loan offers consumer loans and debt-management services over the Internet.The company works with lenders to provide mortgages,home equity loans, auto loans, credit cards and small-business loans.
E-Loan reported third-quarter revenue of $9 million, up from $5 millionin the year-earlier quarter, along with a pro forma loss of $8.5 million, or16 cents per share.
Last month, the company introduced a service that offers instant onlinedecisions on home equity loans, along with a mobile notary service, which the company said allows consumers to close loans within 10 days. E-Loan also said it plans to target the growing market for home equity financing.
Steve Herz, head of auto operations at E-Loan, pointed to the fact that the company realized an increase — in a quarter that saw overall auto industry volumes decline — as evidence that consumers value E-Loan’s “no-hassle process and lower rates.”
E-Loan said it was able to increase revenue, while lowering costs. Thecompany is “focusing efforts on converting E-Loan browsers into borrowers,”said chief executive officer Chris Larsen.
E-Loan went public in June 1999 at $14 per share. The stock ended its firstday of trading at $37.