Lendingclub Corporation · NYSE:LC
Lendingclub — Q4 2021 Earnings Presentation
16 slides from Lendingclub's earnings presentation, Jan 26, 2022
Slide 1: Fourth Quarter 2021 Results
Fourth Quarter 2021 Results January 26, 2022
Slide 2: 4Q 2021 Results & Financial Metrics
4Q 2021 Results & Financial Metrics
Slide 3: Disclaimer
Disclaimer Some of the statements below, including statements regarding our competitive advantages, ability to grow and evolve our business, anticipated future performance and financial results, are “forward-looking statements.” The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may
Slide 4: The Problem We're Solving
The Problem We’re Solving Many American households have LendingClub’s 3.9+ million Our direct-to-consumer digital turned to credit cards to manage their members have already come to marketplace bank features a finances, which has resulted in 40% us to access lower-cost credit. vertically integrated
Slide 5: Award-Winning Member-Focused Digital Marketplace Bank
Award-Winning Member-Focused Digital Marketplace Bank Customers1 Originations1 Vision Mission Promise Become To champion the 3.9+ $70+ America’s Empower Our Members financial success of our members Million Billion Financial Health Club. on Their Path to Financial with fairness, simplicity, and Healt
Slide 6: Best of Both Worlds
Best of Both Worlds Positioned well against both the fintech and bank competitive sets Fintechs Banks Ability to efficiently serve a broad range of customers ✓ ✓ ✗ Capital-light, high-ROE marketplace earnings stream ✓ ✓ ✗ Economics Highly profitable earnings via loan portfolio ✓ ✗ ✓ Lower-cost depos
Slide 7: 4Q21 Highlights: Exceeded All Targets
4Q21 Highlights: Exceeded All Targets 4Q21 Guidance Targets Actuals Commentary Leveraged our competitive advantages and data science capabilities to drive Originations $2.8B to $3.0B $3.1B existing and new member response and conversion rates Revenue up 7% QoQ driven by growth in Revenue $240M to $2
Slide 8: Vertically Integrated Marketplace Bank Model Continues to Drive Superior Performance
Vertically Integrated Marketplace Bank Model Continues to Drive Superior Performance Marketplace Only Marketplace Bank Variance (4Q19) (4Q21) Originations $3.1B $3.1B $0 Same originations Revenue $188.5M $262.2M +$73.7M Stronger economics on same volume levels driven by structural advantages of mark
Slide 9: Topline Growth Driven by Recurring Net Interest Income Stream Combined With Strong Marketplace Revenue
Topline Growth Driven by Recurring Net Interest Income Stream Combined With Strong Marketplace Revenue $262.2 $246.2 Net Interest Income Reflects recurring revenue stream driven by growing Total Net Interest Income $204.4 $65.3 $83.1 average consumer loan Revenue1 Non-Interest Income portfolio by 36
Slide 10: Loan Originations Above Expectations
Loan Originations Above Expectations Marketplace Revenue Reflects Higher Loans Held for Investment Quarterly Loan Originations1,2 Quarterly Marketplace Revenue ($ in millions) ($ in millions) $3,107 $3,069 Held for Investment $2,722 $174.6 $170.6 Marketplace Originations Marketplace $151.7 Originati
Slide 11: Interest Income from HFI Portfolio Grew 34% QoQ as Consumer Loan Portfolio Momentum Builds
Interest Income from HFI Portfolio Grew 34% QoQ as Consumer Loan Portfolio Momentum Builds Bank Average Held for Investment Balances1 Bank Interest Income from Held for Investment Loans2 ($ in millions) ($ in millions) Consumer Loans Commercial/PPP Loans $2,923M $77.0M $2,509M $12.6 $2,284M $945 HFI
Slide 12: Growing Consumer Loan Portfolio Mix Drives Net Interest Margin Expansion to 8.25%
Growing Consumer Loan Portfolio Mix Drives Net Interest Margin Expansion to 8.25% Key Bank Balance Sheet Data Average Balances Average Yield (Average balances; $ in millions) 1Q21 2Q21 3Q21 4Q21 1Q21 2Q21 3Q21 4Q21 +14% Unsecured consumer loans $147 $512 $991 $1,542 13.85% 15.24% 15.95% 15.66% +17%
Slide 13: Maintaining Operating Leverage While Continuing to Invest in Long-term Growth
Maintaining Operating Leverage While Continuing to Invest in Long-term Growth Total Non-interest Expense as a % of Revenue1 Total Non-interest Expense1 ($ in millions) ($ in millions) 136% 4Q20 1Q21 2Q21 3Q21 4Q21 Non-interest Expense 127% Compensation Comp & Benefits 52.5 64.4 71.9 73.3 78.7 & Bene
Slide 14: High Quality Customer Profile Driving Strong Credit Performance
High Quality Customer Profile Driving Strong Credit Performance1 2019 Total2 2021 Total2 2021 HFI3 Personal Loan Credit +30 Day Delinquencies Performance Avg. FICO 701 702 717 Month-on-Book 6 ▪ 2021 originations focused on high quality prime customers, consistent with historical focus and expectatio
Slide 15: 2022 Full Year Outlook
2022 Full Year Outlook Driving strong revenue growth and expanding profitability while investing in long-term growth FY21 Results FY22 Guidance 1Q22 Guidance Commentary $1.1B to $1.2B $255M to $265M Estimate originations Revenue $818.6M of approximately +34% to 47% YoY +141% to 150% YoY $13B in 2022
Slide 16: LendingClub
= LendingClub