Shares of Lending Club jumped 18% on Monday after beating expectations for Q3 and announcing a partnership with the National Bank of Canada, who will spend up to $1.3 billion over the next 12 months on loans.
Lending Club's brand took a big hit after the controversial ouster of CEO Renaud Laplanche in May. But adding a major bank as a new partner signals it may be regaining the market's trust, and investors are buying into it. "Today's results, along with our new executive team, and the return of banks to our platform, give me confidence as we begin our planning for 2017," Lending Club's CEO Scott Sanbord said in a statement. Sanborn was named the permanent CEO in June, after serving as acting CEO following Laplanche's resignation in May. Laplanche, the founder of Lending Club and the once-poster child of online lending, stepped down in May after failing to fully disclose some of his investments and violating the company's lending practices.