Q1 2024 Earnings Summary
Reported on Apr 29, 2024 (Before Market Open)
Pre-Earnings Price$7.37Open (Apr 29, 2024)
Post-Earnings Price$7.37Open (Apr 29, 2024)
Price Change
$0.00(0.00%)
- SoFi's Net Interest Margin (NIM) expanded to 5.9% in Q1 2024, up 43 basis points year-over-year, and is expected to remain above 5% for the foreseeable future, demonstrating strong profitability in a rising rate environment.
- Deposits grew by $3 billion in Q1 2024 to nearly $21.6 billion, with over 90% coming from direct deposit members, enabling SoFi to fund loans at lower costs, reduce reliance on higher-cost funding sources, and support net interest margins.
- Technology Platform revenue accelerated to $94 million in Q1 2024, up 21% year-over-year, driven by new client acquisitions and product enhancements, indicating strong momentum in a key segment expected to drive future growth.
- Expected Increase in Loan Losses: SoFi anticipates ongoing normalization in credit performance towards pre-pandemic levels of 7% to 8% life of loan losses in their personal loan portfolio, indicating potential deterioration in credit quality compared to current levels.
- Conservative Growth Approach Due to Macro Uncertainty: Despite having excess capital and strong demand, SoFi is taking a conservative stance and does not plan to utilize excess capital this year due to macroeconomic uncertainty, which could limit growth opportunities in their lending business.
- Sale of Late-Stage Delinquent Personal Loans: SoFi sold $62.5 million of late-stage delinquent personal loans in the quarter, which is not their typical practice, potentially signaling increased delinquencies and concerns about credit quality in their personal loan portfolio.
Research analysts covering SoFi Technologies.