Lendingclub Corporation · NYSE:LC
Lendingclub — Q2 2022 Earnings Presentation
19 slides from Lendingclub's earnings presentation, Jul 27, 2022
Slide 1: Second Quarter 2022 Results
Second Quarter 2022 Results July 27, 2022
Slide 2: 2Q 2022 Results & Financial Metrics
2Q 2022 Results & Financial Metrics
Slide 3: Disclaimer
Disclaimer Some of the statements below, including statements regarding our competitive advantages, macroeconomic outlook, anticipated future performance and financial results, are “forward-looking statements.” The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “outlook,” “pla
Slide 4: The Problem We're Solving
The Problem We’re Solving Many American households have LendingClub’s 4+ million members Our direct-to-consumer digital turned to credit cards to manage their have already come to us to access marketplace bank features a finances, which has resulted in ~40% lower-cost credit. While we serve a vertic
Slide 5: Award-Winning Member-Focused Digital Marketplace Bank
Award-Winning Member-Focused Digital Marketplace Bank Members1 Originations1 Vision Mission Promise Become To champion the 4+ $75+ America’s Empower Our Members financial success of our members Million Billion Financial Health Club. on Their Path to Financial with fairness, simplicity, and Health. h
Slide 6: 2Q22 Highlights: Exceeded All Targets with Record Revenue and Net Income
2Q22 Highlights: Exceeded All Targets with Record Revenue and Net Income 2Q22 Guidance Targets Actuals Commentary Net Revenue up 61% YoY driven by: ▪ Marketplace revenue up 36% driven by Net Revenue $295M to $305M $330.1M originations growth ▪ Net interest income up 153% driven by growth in the cons
Slide 7: 2Q22 Highlights: Marketplace Bank Model Supporting Profitability and Growth
2Q22 Highlights: Marketplace Bank Model Supporting Profitability and Growth NET REVENUE NET INCOME NET INTEREST INCOME 61% ~400% 153% Net Revenue of $330M, Net Income of $47M (excluding Net Interest Income of $116M, up 61% (+$126M) YoY income tax benefit of $135.3M) up 153% (+$70M) YoY up ~400% (+$3
Slide 8: Best of Both Worlds
Best of Both Worlds Positioned well against both the fintech and bank competitive sets 1 Fintechs Banks Ability to efficiently serve a broad range of customers Industry leading marketing efficiency; 4M+ customers ✓ ✓ ✗ Capital-light, high-ROE marketplace earnings stream $214M Non-Interest Income ✓ ✓
Slide 9: A Self-Reinforcing Flywheel
A Self-Reinforcing Flywheel ~75-80% of originations ~20-25%of originations Our capital-light Our HFI portfolio core marketplace delivers interest business drives Market- income from high- Earnings Portfolio scale and place quality, high-yield fee revenue loans funded by low-cost deposits Fintech Ban
Slide 10: Record Revenue Driven by Recurring Net Interest Income Stream Combined With Strong Marketplace Revenue
Record Revenue Driven by Recurring Net Interest Income Stream Combined With Strong Marketplace Revenue Total Net Revenue1 61% ($ in millions) $330.1 Net Interest Income Non-Interest Income NET INTEREST INCOME2 $116.2 153% YoY growth reflects consumer loan growth and Bank NIM expansion to 8.7% $204.4
Slide 11: Non-Interest Income: Marketplace Loan Originations Driving Higher Marketplace Revenues
Non-Interest Income: Marketplace Loan Originations Driving Higher Marketplace Revenues Quarterly Loan Originations1,2 Quarterly Marketplace Revenue ($ in millions) ($ in millions) Marketplace Originations 41% Retained Loans $3,840 36% $206.4 $2,722 Marketplace Sold Loans $2,819 Drive $151.7 Marketpl
Slide 12: Interest Income from HFI Portfolio Grew 179% YoY as Consumer Loan Portfolio Momentum Builds
Interest Income from HFI Portfolio Grew 179% YoY as Consumer Loan Portfolio Momentum Builds Bank Average Bank Interest Held for Investment Income from Held Balances1 for Investment 179% ($ in millions) 64% Loans2 $108.9 Commercial/PPP Loans $3,754 ($ in millions) $11.0 Consumer Loans $793 HFI Portfo
Slide 13: Growing Consumer Loan Portfolio Mix Drives Net Interest Margin Expansion
Growing Consumer Loan Portfolio Mix Drives Net Interest Margin Expansion, Offsetting Higher Deposit Costs Average Balances Average Yield 2Q21 3Q21 4Q21 1Q22 2Q22 2Q21 3Q21 4Q21 1Q22 2Q22 Unsecured consumer loans $512 $991 $1,542 $2,060 $2,692 15.24% 15.95% 15.66% 15.22% 14.19% Secured consumer loans
Slide 14: Improving Operating Leverage by 15pts YoY with Revenues up 61% and Expenses Up 31%
Improving Operating Leverage by 15pts YoY with Revenues up 61% and Expenses Up 31% QoQ Revenue up 14% and Expenses up 10% Efficiency Ratio Total Non-Interest Expense1 (Non-Interest Expense as a % of Net Revenue1) ($ in millions) ($ in millions) Efficiency Ratio 2Q21 3Q21 4Q21 1Q22 2Q22 Non-Interest
Slide 15: Net Income Growth Driven by Strong Revenue Growth and Positive Operating Leverage
Net Income Growth Driven by Strong Revenue Growth and Positive Operating Leverage Net Income Pre-Tax, ($ in millions) Pre-Provision Income 173% $182.1 ($ in millions) Income Tax Benefit1 Earnings Excluding Income Tax Benefit EPS $135.3 $1.28 ~400% $120.7 EPS $44.2 $9.4 $46.8 $0.45 2Q21 2Q22 2Q21 2Q2
Slide 16: High Quality Prime Portfolio Driving Strong HFI Credit Performance
High Quality Prime Portfolio Driving Strong HFI Credit Performance1 Servicing HFI 30+ Day Delinquencies Portfolio1 Portfolio3 2.5% Personal Loan Credit Performance Avg. FICO 721 730 2.0% ▪ PL Prime originations focused on customers with average FICO PL Prime2 700+ and average income $100K+ Still bel
Slide 17: LendingClub 30+ Delinquencies Continue Below Industry and Significantly Below Fintech Peers
LendingClub 30+ Delinquencies Continue Below Industry and Significantly Below Fintech Peers Q3 2021 1.80% 1.60% 1.40% 30+ Delinquency Rate 1.20% 1.00% 0.80% Fintechs All Industry 0.60% LendingClub 0.40% 0.20% 0.00% 0 1 2 3 4 5 6 7 Months on Book Source: TransUnion PRAMA Insights ® Trademark register
Slide 18: Maintaining 2022 Guidance
Maintaining 2022 Guidance 3Q22 Guidance FY22 Outlook $280M to $300M $1.15B to $1.25B Net Revenue +14% to 22% YoY +40% to +53% YoY Net Income $30M to $40M $145M to $165M (Excluding $135M 2Q22 Income Tax Benefit) +10% to 47% YoY 7.8X to 8.9X YoY 18
Slide 19: LendingClub
-: LendingClub