Q1 2024 Earnings Summary
Reported on Feb 18, 2025 (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.