LendingClub (NYSE:LC) has easily topped analyst estimates reporting net income of $27.2 million or an EPS of $0.26. Top line revenue came in at $246.2 million with total sequential revenue growth of 20% outpacing origination growth of 14%, according to the digital bank.
Shares in LendingClub have been marching higher in recent weeks as optimism improved regarding its transition from a marketplace lending platform to a chartered digital bank. While shares dipped yesterday, in after-hours trading shares moved higher on the news.
LendingClub reported that deposits grew 12% sequentially to $2.8 billion, in line with the growth of their loans held for investment. New recurring stream of net interest income grew 42% sequentially to $65.3 million, as the bank’s loan portfolio grew 25% from June 30, 2021. Marketplace revenue grew 15% sequentially, reflecting higher origination fees associated with loan origination growth.
LendingClub reported over 3.8 million members stating that most are generally high income ($100K average) and have a high FICO score. LendingClub combines its consumer lending expertise with its digital banking ecosystem.
Scott Sanborn, LendingClub’s CEO, issued the following statement:
“Our strong revenue and earnings growth trajectory has become evident following our transformation into a digital marketplace bank. Our success continues to be driven by our competitive advantages, including our growing base of 3.8 million members, our exceptional data science capabilities, and our proven marketplace model. With our enhanced operating leverage, digital-first infrastructure, and the ongoing move of consumers toward online banking, there’s no better time to grow a next generation digital bank like LendingClub.”
Guidance for Q4 indicated loan originations of $2.8 billion to $3 billion, revenue of $240 million to $250 million and net income of $20 million to $25 million. LendingClub tapped up full year guidance as well.
The earnings call should shed additional light on the digital bank’s performance.
The LendingClub earnings presentation is below.