Thu, Aug 1, 8:44 PM (88 days ago)
LendingClub Corporation's Q2 2024 financial performance exhibited mixed results amid a challenging economic environment. Key highlights include: - **Loan Originations**: Increased 10% sequentially but decreased 10% year-over-year to $1.8 billion, driven by higher unsecured personal loan volumes. - **Revenue**: Total net revenue rose 4% sequentially but fell 19% year-over-year to $187.2 million. Marketplace revenue was flat sequentially and down 32% year-over-year due to lower loan sale prices and decreased origination volume. - **Net Interest Income**: Increased 5% sequentially but decreased 12% year-over-year to $128.5 million, impacted by higher deposit funding costs. - **Provision for Credit Losses**: Increased 11% sequentially to $35.6 million, driven by higher loan originations held for investment and a specific provision in the commercial real estate portfolio. - **Non-interest Expense**: Remained flat sequentially but decreased 12% year-over-year to $132.3 million, primarily due to reduced compensation and benefits from workforce reductions. - **Net Income**: Rose 22% sequentially and 47% year-over-year to $14.9 million, with diluted EPS at $0.13. - **Deposits**: Increased 8% sequentially and 18% year-over-year to $8.1 billion, reflecting growth in high-yield savings and certificates of deposit. - **Capital Ratios**: CET1 capital ratio stood at 17.9%, and the Tier 1 leverage ratio was 12.1%. LendingClub maintained strong liquidity and capital levels, focusing on expense discipline and innovation to navigate economic volatility.