UPDATE 1-Online lender OnDeck profit tops estimate on lower costs

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(Reuters) – OnDeck Capital Inc (ONDK.N) on Tuesday posted a better-than-expected quarterly adjusted profit, as the online lender set aside less money for bad loans and costs fell.

Operating expenses fell about 5 percent to $44.6 million. The New York-based small business lender has been cutting costs in an effort to regain profitability.

Provisions for loan losses fell 21.4 percent to $36.3 million, while funding costs increased 5 percent to $11.8 million.

Originations rose 3 percent to $590.6 million in the first quarter.

Net loss attributable to common shareholders narrowed to $1.9 million, or 3 cents per share, in the quarter ended March 31, compared with a loss of $11.1 million, or 15 cents per share, a year earlier.

On an adjusted basis, OnDeck earned 8 cents per share, beating analysts’ average estimate of 4 cents, according to Thomson Reuters I/B/E/S.

The company said it now expects a full-year 2018 profit of up to $10 million, from its previous view of between a loss of $2 million and a profit of $10 million.

Net revenue rose to $42.2 million from $35.4 million.

Reporting by Nikhil Subba in Bengaluru; Editing by Shailesh Kuber

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