LendingClub Reports EPS of $0.05, Declining Loan Originations

LendingClub (NYSE:LC), a digital bank with expertise in online lending, announced Q3 results today, reporting top line revenue of $200.8 million and net income of $5 million or EPS of $0.05.

The top line number was a decline from $232.5 million in Q2 and when compared to the same quarter in 2022 a dramatic decline when LendingClub reported $304.9 million in revenue.

Last quarter, LendingClub reported an EPS of $0.09, and in Q3 2022, an EPS of $0.41.

LendingClub CEO Scott Sanborn issued the following statement on the results:

“Our disciplined execution has resulted in our tenth consecutive quarter of GAAP profitability. We are successfully leveraging our proprietary structured certificates program to drive marketplace issuance, while also taking difficult but necessary actions to align our expense base to current market conditions. Looking ahead, these actions combined with our strong foundation and capital base have us well positioned to capture a historic refinance opportunity as market conditions stabilize.”

LendingClub noted that deposits rose to $7.0 billion during the quarter compared to $6.8 billion in the prior quarter, primarily due to an increase in customer certificates of deposit.

Loan originations declined from $2 billion in Q2 to $1.5 billion in Q3 2024. LendingClub said this was a result of reduced purchases by bank loan investors.

LendingClub expects Q4 loan originations to land between $1.5 billion to $1.7 billion. Net revenue is expected in a range of $35 million to $45 million.

Shares in LendingClub were largely unchanged in after-hours trading. The shares have been hovering around all-time lows in recent weeks.

The LendingClub earnings call is scheduled for 5 p.m. ET today. (October 25)

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