SoFi Technologies (NASDAQ:SOFI) is gearing up to report its Q4 earnings this Monday, and all eyes are on the company's loan growth and its financial services segment. Wall Street is expecting an EPS of $0.04 and revenue of $682.2 million, which would mark a 14.8% increase year-over-year.
In Q3 2024, SoFi's capital-light Loan Platform saw a big boost, originating $1 billion in personal loans and generating $56 million in high-margin fees. To top it off, the company secured a $525 million personal loan securitization deal in Q4 2024 with PGIM Fixed Income, which further supports its asset-light lending model.
J.P. Morgan's analyst, Reginald L. Smith, pointed out that SoFi's loan business is pretty uniqueit's able to monetize applicants who might have been rejected elsewhere, all without impacting its balance sheet or capital ratios. He's expecting a modest increase in loan originations for Q4, with momentum continuing into 2025.
Smith even suggested that SoFi has the potential to become a major player in digital banking, and he's bullish on the company's long-term prospects, going so far as to say it could eventually be the American Express of the fintech world.
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