Digital bank LendingClub (NYSE: LC) has released Q2 earnings which are being described as an “inflection point” for the Fintech. Net income increased to $14.9 million from $12.3 million in Q1 2024.
LendingClub CEO Scott Sanborn, LendingClub CEO said their product innovations enabled them to “capture strong borrower and marketplace investor demand” generating growth in originations and revenue.
“Our second quarter results mark an inflection point, with our business calibrated to the current rate environment and positioned to accelerate as conditions improve,” said Sanborn.
Loan originations of $1.8 billion were reported for Q2 in contrast to $1.6 billion in the prior quarter. LendingClub said lending was helped by “new consumer loan initiatives.”
Total net revenue for the quarter was reported at $187.2 million, compared to $180.7 million in the prior quarter.
Net interest income delivered $128.5 million, compared to $122.9 million in the previous quarter, primarily reflecting growth in total interest-earning assets at a net interest margin of 5.75%.
Shares generated EPS of $0.13, compared to EPS of $0.11 in the prior quarter.
Total assets stood at $9.6 billion compared to $9.2 billion in Q1, primarily due to growth in securities related to the structured certificates program and growth in the extended seasoning portfolio.
Deposits increased from $7.5 billion in Q1 to $8.1 billion in Q2.
LendingClub provided guidance for Q3, with loan originations between $1.8 and $1.9 billion and net revenue of $40 to $50 million.
Shares in LendingClub rose in after-hours trading, catching a bid at a 52-week high.
The LendingClub earnings presentation is available here.
