Lendingclub Corporation · NYSE:LC
Lendingclub — Q3 2021 Earnings Presentation
16 slides from Lendingclub's earnings presentation, Oct 27, 2021
Slide 1: Third Quarter 2021 Results
Third Quarter 2021 Results October 27, 2021
Slide 2: 3Q 2021 Results & Financial Metrics
3Q 2021 Results & Financial Metrics
Slide 3: Disclaimer
Disclaimer Some of the statements below, including statements regarding our competitive advantages, ability to grow our business, anticipated future performance and financial results, are “forward-looking statements.” The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “outlook
Slide 4: The Problem We're Solving
The Problem We’re Solving Many American households have LendingClub’s 3.8+ 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 3.8+ $68+ 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: 3Q21 Highlights: Exceeded All Targets
3Q21 Highlights: Exceeded All Targets 3Q21 Guidance Targets Actuals Commentary ▪ Leveraged our competitive advantages and Originations $2.8B to $3.0B $3.1B data science capabilities to drive existing and (14% QoQ) new member response and conversion rates ▪ Revenue growth outpacing originations growt
Slide 8: Growth Driven by Accelerating Recurring Revenue Stream Combined With Marketplace Revenues
Growth Driven by Accelerating Recurring Revenue Stream Combined With Marketplace Revenues $246.2 Net Interest Income reflects recurring revenue Total Net Interest Income $204.4 $65.3 stream driven by growing Revenue1 Non-Interest Income consumer portfolio of 39% ($ in millions) $45.9 QoQ $105.8 $18.
Slide 9: Origination Growth & Marketplace Revenue Driven by New Customer Acquisition & Data Advantages
Origination Growth & Marketplace Revenue Driven by New Customer Acquisition & Data Advantages Quarterly Loan Originations1,2 Quarterly Marketplace Revenue ($ in millions) ($ in millions) $3,107 $2,722 Held for Investment $174.6 Marketplace Originations Marketplace $151.7 Originations Drive $1,483 $2
Slide 10: Interest Income from HFI Portfolio Grew 48% QoQ as Consumer Loan Portfolio Momentum Builds
Interest Income from HFI Portfolio Grew 48% QoQ as Consumer Loan Portfolio Momentum Builds Bank Average Held for Investment Balances1 Bank Interest Income from Held for Investment Loans2 ($ in millions) ($ in millions) Consumer Loans Commercial/PPP Loans $2,509M 1 $57.6M $2,284M $1,895M HFI Portfoli
Slide 11: Growing Consumer Loan Portfolio Drives Yield Expansion
Growing Consumer Loan Portfolio Drives Yield Expansion1 Key Bank Balance Sheet Data Average Balances Average Yield (Average balances; $ in millions) 1Q21 2Q21 3Q21 1Q21 2Q21 3Q21 Unsecured personal loans $147 $512 $991 13.85% 15.24% 15.95% +7% +10% +12% Secured consumer loans $521 $532 $464 3.70% 3.
Slide 12: Operating Leverage Continues to Increase
Operating Leverage Continues to Increase Driving further efficiency while investing in membership growth Total Non-interest Expense as a % of Revenue1 Total Non-interest Expense1 ($ in millions) ($ in millions) 3Q20 4Q20 1Q21 2Q21 3Q21 154% Non-interest Expense Comp & Benefits Compensation 58.6 52.5
Slide 13: Vertically Integrated Marketplace Bank Model Driving Superior Performance
Vertically Integrated Marketplace Bank Model Driving Superior Performance Marketplace Only Marketplace Bank Variance (4Q19) (3Q21) Originations $3.1B $3.1B $0 Same originations Revenue $188.5M $246.2M +$57.7M Stronger economics on same volume levels driven by structural advantages of GAAP Net Income
Slide 14: Significantly Lower Delinquency Rates Across the Credit Cycle
Significantly Lower Delinquency Rates Across the Credit Cycle Q4 2019 Prime Vintage 30-Day Delinquency Rates (TransUnion Data) Credit Performance Personal loans impacted most by pandemic (Q4’19 vintage) Fintechs outperformed overall industry and other Industry fintechs, driven by timely and proactiv
Slide 15: Raising Full Year Outlook
Raising Full Year Outlook As of 10/27/21 As of 07/28/21 4Q21 Guidance FY21 Guidance Prior FY21 Guidance Originations $2.8B to $3.0B $10.1B to $10.3B $9.8B to $10.2B 4Q21 Guidance reflects current outlook on the economy, seasonality, as well as increased Revenue $240M to $250M $796M to $806M $750M to
Slide 16: LendingClub
= LendingClub