* Platform gets $1.3 bln investment from National Bank of Canada
* Q3 adj loss 4 cents/shr vs. est 9 cents
* Sees Q4 net loss $38 mln-$48 mln
* Shares jump as much as 20 pct (Adds CEO quotes, details; updates shares)
By Richa Naidu and Sweta Singh
Nov 7 (Reuters) - Online lending platform operator LendingClub Corp LC.N reported a smaller-than-expected loss and said National Bank of Canada NA.TO had approved a $1.3 billion investment on its platform, sending its shares soaring as much as 20 percent.
The company, which matches borrowers and lenders via an online marketplace, had been struggling to bring banks back to its platform following revelations of lending improprieties, the ouster of founder and ex-CEO Renaud Laplanche and a U.S. Department of Justice probe.
"Virtually all our bank partners are back," Chief Executive Scott Sanborn said on a call with analysts on Monday.
The results showed LendingClub's progress in revitalizing its business despite investor skepticism about its ability to rebound from the scandal, BTIG analyst Mark Palmer wrote in a note to clients.
Banks accounted for 15 percent of origination volumes in September, Sanborn said, adding that LendingClub aimed to raise that ratio to 25 percent in the fourth quarter.
"We actively re-engaged with investors of all types to deliver on our plan and enable $2 billion in loan originations," Sanborn said. loan originations, a key metric indicating the volume of loans processed, fell 11.8 percent to $1.97 billion in the third quarter ended Sept. 30.
LendingClub raised interest rates for some of its loans this year and tightened its credit policy, resulting in some high-risk borrowers being denied loans.
The company reported a net loss of $36.5 million, or 9 cents per share for the quarter, compared with a profit of $1 million, or nil cents per share, a year earlier.
LendingClub said results were hurt by about $11 million in incentives paid to investors, while operating expenses jumped by nearly a third to $151.25 million.
Excluding items, the company lost 4 cents per share, compared with the average analyst estimate of a loss of 7 cents, according to Thomson Reuters I/B/E/S.
Total net revenue fell 1.5 percent to $114.56 million, beating analysts' estimate of $103.65 million.
LendingClub said it expected a fourth-quarter net loss of $38 million-$48 million. That compares with a profit of $4.57 million a year earlier.
Up to Friday's close of $5.13, LendingClub shares had fallen 53.6 percent this year.