LendingClub lending grew by 84% in the second quarter

FinTech from San Francisco LendingClub said it had the most profitable quarter in the company’s history on Wednesday (July 28) as the new lender completed its first full quarter working as a digital bank after its $ 185 Million Purchase Radius in January.

Announcing its second quarter results In the three months ended June 30, its revenue grew 93%, according to LendingClub, as loan origination fees more than doubled.

“This is the start of a sharp rise in the company’s earnings. Our transformation is supported by our competitive edge, which includes over 3.5 million members, deep data analytics capabilities, market model, and our more efficient operating platform, ”said LendingClub CEO. Scott Sanborn says the ad.

FinTech, a 14-year-old company, officially reported that its lending volume grew 84% in the quarter as the company “returned to market leadership and leveraged our advanced forecasting and lending decision-making capabilities, resulting in a significant increase in our end-to-end capabilities.” conversion rate of the final application, ”- said the management.

Its market revenue grew 86 percent sequentially, mainly reflecting a 105 percent rise in issuing fees and a 132 percent jump in profit from loan sales as loans sold through the marketplace doubled.

In addition, LendingClub reported the volume of these deposits increased to $ 2.5 billion, which contributed to the expansion of the bank’s loan portfolio.

In terms of overall financial results, LendingClub posted a consolidated net income of $ 9.4 million on total revenues of $ 204.4 million for the three months ended June 30.

Management stated that LendingClub’s consolidated net income of US $ 9.4 million includes notable items of US $ 56.7 million, which include “provisions for current expected credit losses (CECL) of US $ 34.6 million USD, which reduced the reported profit and reflected the rapid growth of the bank’s loan portfolio, amounting to USD 19.6 million in net revenue. deferral of unallocated loans and $ 2.5 million in one-time expenses. “

The news comes as LendingClub reported Within the framework of the April profit for the first quarter, the volume of issued loans increased by 63% compared to the previous quarter.

“We had a great start to the year, accelerating retail lending growth by leveraging our strategic strengths including our 3 million customer base, our data and technology capabilities, and our newly acquired digital bank,” Sanborn said when the company announced its first quarter results.