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NEW YORK, July 31 (Reuters) – Shares of SoFi Technologies Inc (SOFI.O) rose by more than 22% on Monday, hitting highest level in more than a year, after the financial services provider reported second quarter results that beat analyst expectations.
SoFi’s total net revenue rose 37% to $498 million, driven by strong growth in personal loan originations that allowed its net interest income (NII) to more than double to $291.1 million in three months to June, the company said on Monday.
That result exceeded the average analyst estimate of $476.2 million and $261.3 million for SoFi’s revenue and NII, per Refinitiv.
SoFi’s shares, which have risen by nearly 150% year-to-date, reached as high as $11.70, the highest level since February last year. The stock was the second most traded stock among retail investors as of 10:30 a.m. ET, J.P.Morgan data showed. It was last up 20%.
San Francisco-based SoFi, which posted a net loss of $47.5 million, said it expected to report a profit for the first time in the fourth quarter of this year. The company’s total deposits grew 26% to 12.7 billion in the quarter, powered by a 44% growth in its customers to more than 6.2 million.
“(Second quarter) results beat expectations and were largely positive with continued rapid member and deposit growth,” Jefferies analysts, led by John Hecht, said in an investor note. “We highlight that results were more from net interest income and less from fair value marks relative to our forecast, which represents recurring revenues,” the analysts added.
Reporting by Chibuike Oguh in New York; additional reporting by Medha Singh in Bangalore
Editing by Nick Zieminski
Our Standards: The Thomson Reuters Trust Principles.
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