LendingClub Earnings

LendingClub earnings beat Q1 expectations

After a successful first quarter, LendingClub posted earnings of $.39 a share on revenue of $289.5 million, beating analysts’ expectations.

Announced right after the market closed on Wednesday, revenue was 174% year-over-year, outpacing originations growth of 117%.

“We grew our member base beyond four million to serve more everyday Americans looking to refinance out of higher-cost credit card debt, save more of what they earn and find a better way to the bank,” CEO Scott Sanborn said.

“With another quarter of record results, we are demonstrating the power of our loyal customers, significant data advantage, and differentiated marketplace bank model.”

Four million members strong

LendingClub earnings
CEO Scott Sanborn

The firm had recently announced members grew past the four million mark, a type of preview to the close of a successful quarter.

Along with the news, the firm reported total loans outside of PPP grew 23% from Dec. 31, 2021, and 116% from March 31, 2021.

Also, the bank’s deposits of $4 billion were up 27% from Dec. 31, 2021, and 68% from March 31, 2021, supporting the growth of loans.

Along with the release, the bank shared insght into the first quarter of 2022 with a positive outlook on the year:

  • Recurring stream of net interest income grew 20% sequentially to $99.7 million and increased 439% year-over-year.
  • Marketplace revenue of $180.0 million grew 6% sequentially and 120% year-over-year, reflecting growth in marketplace originations and strong platform investor demand.
  • Provision for credit losses was $52.5 million, reflecting a 23% growth in loans held for investment (excluding PPP) from Dec. 31, 2021. The credit quality of our retained portfolio remained strong given the credit profile of our borrowers with an average FICO of 727.
  • Net income of $40.8 million rose 40% sequentially and by $87.9 million year-over-year.

Most analysts were either neutral on the stock or upgraded to a buy rating over the last quarter. In total, Lending Club was expected to post $0.24-$.26 a share on revenue of $262.07 million.

“We believe we are well-positioned to execute our strategy and outperform the competition while helping our members effectively navigate the ever-changing economic landscape,” Sanborn said.

  • Kevin Travers

    Intensely energetic news reporter asking questions covering the collision between Silicon Valley, Wall Street, and everywhere in-between. Studied history at the University of Delaware, learned to write at the Review, and debanked.