Why Upstart, LendingClub, and Customers Bancorp Are Rising Today
Shares of several banks and consumer-facing fintech companies got off to a good start today, largely due to positive earnings reports, but struggled to sustain momentum in the face of difficult economic conditions.
Shares of the artificial intelligence lender Upstart (NASDAQ: UPST) traded nearly 6% higher at 9:35 a.m. ET today, although it traded less than 1% higher at 10:53 a.m. Shares of Customers Bancorp (NYSE: CUBI) traded more than 9% higher at 9:35 a.m. but only about 4.5% higher at 10:53 a.m. Shares of the digital marketplace bank LendingClub (NYSE: LC) performed the best of the group, trading roughly 15% higher at 10:53 a.m.
LendingClub reported earnings results for the first quarter of 2022 yesterday evening and generated a solid beat for the quarter. Diluted earnings per share of $0.39 and revenue of nearly $290 million came in well above expectations. The bank originated more than $3.2 billion of originations, the large majority of which are unsecured personal loans. Furthermore, credit quality remained benign, although management is preparing for a much harsher environment to come by tightening credit underwriting. LendingClub also raised its full-year guidance, boosting expected origination volume, revenue, and profits.
Source Fool.com
