LendingClub (NYSE:LC) stock advanced 8.5% in Wednesday after-hours trading after delivering Q3 earnings that exceeded Wall Street expectations, as loan origination volume and net interest income both increased during the quarter.
"We had a standout quarter, with credit outperformance and the return of bank buyers driving improved loan sales pricing, our capital strategy delivering a 25% larger balance sheet year to date, and strong financial performance translating to a meaningful improvement in book value per common share over the past 12 months," said CEO Scott Sanborn.
The online lending platform expects Q4 loan originations of $1.8B-$1.9B, falling short of the $1.93B Visible Alpha consensus. Pre-provision net revenue for the quarter is expected to be $60M-$70M.
Q3 GAAP EPS of $0.13, beating the $0.07 average analyst estimate, held steady from Q2 and jumped from $0.05 in Q3 2023.
Total net revenue of $201.9M, surpassing the $190.0M consensus, ascended from $187.2M in the previous quarter and $200.9M a year before.
Total loan originations increased to $1.91B (vs. $1.88B Visible Alpha estimate) from $1.81B in Q2 and $1.51B in Q3 of last year.
Preprovision net revenue of $65.6M rose from $55.0M in Q2 and fell from $72.8M in the year-earlier period.
Net interest income was $140.2M, compared with $128.5M in Q2 and $137.0M in Q3 2023.
Provision for credit losses perked up to $47.5M from $35.6M in Q2 and retreated from $64.5M a year ago.
