LendingClub, the parent company of LendingClub Bank, a leading digital marketplace bank, has announced impressive fourth-quarter earnings that surpassed analysts' expectations. The company's shares surged by 11% to reach $9.71 following the news.
In the fourth quarter, LendingClub reported earnings of $10.2 million, or 9 cents a share, in comparison to the previous year's earnings of $23.6 million, or 22 cents a share. This exceeded the estimates of analysts, who were predicting earnings of $1.5 million, or 1 cent a share.
While revenue for the quarter was $185.6 million, it is important to note that this figure decreased from last year's $262.7 million. Nevertheless, it still exceeded the anticipated revenue of $182.1 million.
LendingClub also revealed that its total assets during the quarter were $8.8 billion, showing growth compared to the previous quarter's total assets of $8.5 billion. This increase can be primarily attributed to the growth in securities related to the structured certificate program.
Looking ahead, LendingClub is optimistic about the first quarter. The company anticipates loan originations ranging from $1.5 billion to $1.7 billion and expects pre-provision net revenue to reach $30 million to $40 million.
LendingClub's impressive earnings demonstrate their continued success in the marketplace bank sector, positioning them for strong growth in the future.
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