LendingClub (NYSE:LC) has revealed Q1 2025 earnings, which matched analyst expectations of earnings of $0.10 per share.
LendingClub, once an online lender and now a digital bank, also announced the acquisition of an Artificial Intelligence (AI) platform for Spending Intelligence.
LendingClub, which still is heavily dependent on online lending, said originations were more than 21% year over year or $2 billion in volume.
Net revenue increased 20% to $217.7 million, compared to $180.7 million in the prior year. This number was helped by higher interest rate income and improved marketplace loan sales pricing.
Provision for net credit losses increased to $58.1 million, contrasting with $39.9 million in the year prior. This was said to reflect the ongoing economic uncertainty and the fact that they are holding more loans on their balance sheet.
Comparatively, net charge-offs of held loans declined to $48.9 million from $80.5 million in the previous year.
Net income declined to $11.7 million versus $12.3 million in Q1 2024.
Net income for the first quarter of 2025 included the impact of $8.1 million on allowance and net fair value adjustment.
Deposits were reported at $8.9 billion, an increase of 18% compared to $7.5 billion in the prior year.
Scott Sanborn, LendingClub CEO, said they were off to a great start in 2025.
“We’ll continue to build on that momentum with additional investments in marketing to further originations growth while maintaining strong credit discipline and innovating on member products and experiences.”
As for the AI Spending Intel platform, LendingClub acquired the intellectual property and as well as some of the staff at Cushion.
Regarding guidance, LendingClub anticipates loan originations of $21. billion to $2.3 billion and net revenue of $70 million to $80 million.
Shares of LendingClub were down in post-market trading, currently at $9.98 per share, compared to the close of $11.01, representing a roughly 9% drop.