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Dec 31, 2022
LendingClub Q4 2022 Earnings Report
Delivered record full year revenue and earnings growth despite challenging environment.
Key Takeaways
LendingClub Corporation reported fourth quarter results, demonstrating the benefits of its evolution into a marketplace bank. Recurring revenue grew significantly to offset the expected reduction in marketplace volumes. The company streamlined operations and will maintain underwriting discipline while remaining profitable.
Total net revenue of $262.7 million was comparable to the prior-year period, as strong growth in net interest income offset lower marketplace revenue.
Net income of $23.6 million compared to $29.1 million year over year, reflecting higher credit provisioning due to growth in the held-for-investment portfolio, partially offset by favorable marketing efficiency.
Loan originations were $2.5 billion, compared to $3.1 billion in the prior-year period.
Total assets increased 63% year over year to $8.0 billion, primarily reflecting growth in loans held for investment, including the acquisition of a $1.05 billion outstanding principal loan portfolio in the fourth quarter of 2022.
Forward Guidance
Given the rapid change in the economic environment, the company is currently providing guidance for the first quarter of 2023 and expects loan originations and pre-provision net revenue to be in the ranges below. For 2023, the company intends to remain profitable, while investing in-period earnings into loan retention to support future earnings.
Positive Outlook
- Loan originations are expected to be $1.9B to $2.2B.
- Pre-Provision Net Revenue is expected to be $55M to $70M.
- Company plans to maintain held-for-investment loan balances in line with the fourth quarter of 2022.
- Company intends to remain profitable.
- Company will invest in-period earnings into loan retention to support future earnings.
Challenges Ahead
- Guidance is only provided for the first quarter of 2023.
- Outlook for loan originations reflects the impact of rising rates on marketplace demand.
- Outlook reflects continued prudent underwriting.
Historical Earnings Impact
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