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UPDATE 1-Online lender OnDeck's profit beats on lower costs

(Adds details from fourth-quarter statement, share move)

Feb 13 (Reuters) - Online lender OnDeck Capital Inc on Tuesday reported a better-than-expected quarterly profit as it set aside less money for bad loans, and managed to keep costs lower.

Like its peers, OnDeck has been struggling with rising loan defaults, and has faced concerns from investors over the quality of its loans and the ability to grow at a fast pace.

The company, which posted losses in the first three quarters of 2017, has been trying to counter some of the damage to its results from delinquencies by trying to attract borrowers with better credit scores, and keeping a tight leash on expenses.

OnDeck said on Tuesday it set aside $34.4 million as provisions for bad loans in the fourth quarter, down 38.2 percent from a year earlier. Total operating expenses fell 28.2 percent to $37.7 million.

Net revenue more than doubled to $42.1 million.

Net income attributable to common shareholders was $5.1 million, or 7 cents per share, in the quarter ended Dec. 31, compared with a loss of $35.9 million, or 50 cents per share, a year earlier. (http://reut.rs/2BVGEHI)

On an adjusted basis, OnDeck earned 10 cents per share. Analysts on average had expected a profit of 4 cents per share, according to Thomson Reuters I/B/E/S.

Shares of OnDeck were up 1.1 percent at $4.53 in premarket trading. (Reporting By Aparajita Saxena in Bengaluru; Editing by Savio D'Souza and Maju Samuel)