LendingClub Corporation (NYSE:LC) Q4 2022 Earnings Call Transcript

Drew LaBenne: And I think we will grow the SBA Government Guaranteed Lending business faster. That is part of our intention as well. They should run off slower than PL to grow so less predictable, right. It just, we may have customers who decide to refinance or diversify their banking relationships, but we’re expecting it to be slower over the course of 2023.

Michael Perito: Okay. Perfect. Thank you guys.

Operator: Thank you. There are no additional questions waiting at this time. So, I’ll pass the conference back over to Sameer.

Sameer Gulati: Thanks, Megan. So, we do have a question from one of our retail investors. And the question is, with credit card rates and balances at all-time highs, how do you see this affecting your business?

Scott Sanborn: Yes, I mean we tried to touch on that in the, the prepared remarks. I think, we believe there is a very, very material opportunity for us on the other side which is these, the balances are massive and these things that are acting as headwinds for us now should turn into tailwinds, which is investor cost of capital will come down based on forward expectations. Credit card, the Fed will not have moved yet, credit cards will not have moved yet. And we will be able to offer real value to our loan buyers and we’ll be able to offer even more compelling value to our borrowers. And, it is our intention to be in a position to take advantage of that opportunity and use the earnings that generates to really continue our €“ the evolution we talked about earlier, which is growing the bank balance sheet and diversifying our overall set of products and services we offer to borrowers.

Sameer Gulati: Great. Well thank you all for joining us for the earnings call and if you have any follow-up questions, please contact investor release. Thank you.

Operator: That concludes the LendingClub’s Fourth Quarter 2022 Earnings Conference Call. Thank you for your participation. Have a wonderful evening.