2 Reasons LendingClub Could Deliver Strong Earnings Results
Shares of the digital marketplace bank LendingClub (NYSE: LC) have been climbing all month, as more investors begin to understand the power behind the bank's new hybrid model and gear up for third-quarter earnings results on Oct. 27. After acquiring Radius Bank earlier this year and obtaining a bank charter, LendingClub, which uses technology and data to streamline online personal lending, began retaining a quarter of the loan volume it originates on its balance sheet and generating recurring interest income. The bank charter also enables LendingClub to use cheap deposits to fund loans and save on origination costs as well.
After a very strong second quarter with this model in place, here are two reasons I am bullish on LendingClub's third-quarter earnings report.
I see multiple ways LendingClub can further prove its model to investors. The company's business model is heavily reliant on loan origination volume. The company is also a leader in market share for personal loans, so if there is good overall personal loan activity in the segment in Q3, I have no doubt that LendingClub will get plenty of origination volume and have a great quarter.
Source Fool.com
