Lending hand

1 Aug 2019 By Robyn Mak Follow @mak_robyn

China makes life deliberately hard for online lenders like MYbank, backed by Alibaba’s founder. The bank is now raising capital, but what it really needs are elusive deposits. Still, MYbank is growing and profitable, and Ma has experience at being the financial underdog.

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Regions

Tencent need not envy Jack Ma’s finance fame

Context News

Chinese online bank, MYbank, is planning to raise new capital, according to a person familiar with the situation.

Reuters reported on July 30 that MYbank was seeking around 6 billion yuan ($871 million) in a funding round that would value the company at 24 billion yuan, Reuters reported on July 30, citing a source and fundraising document.

MYbank is 30% owned by Ant Financial, the financial services company controlled by Alibaba founder Jack Ma. It lends primarily to small businesses. As of the end of 2018, loans and advances on its balance sheet topped 47.7 billion yuan, up 51% from a year earlier, according to its annual report.

The bank reported an annual earnings of 670 million yuan on revenue of 6.3 billion yuan.

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