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LendingClub ROE %

: 74.06% (As of Jun. 2022)
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ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. LendingClub's annualized net income attributable to common stockholders for the quarter that ended in Jun. 2022 was $728 Mil. LendingClub's average Total Stockholders Equity over the quarter that ended in Jun. 2022 was $983 Mil. Therefore, LendingClub's annualized ROE % for the quarter that ended in Jun. 2022 was 74.06%.

The historical rank and industry rank for LendingClub's ROE % or its related term are showing as below:

LC' s ROE % Range Over the Past 10 Years
Min: -23.09   Med: -6.32   Max: 31.83
Current: 31.83

During the past 10 years, LendingClub's highest ROE % was 31.83%. The lowest was -23.09%. And the median was -6.32%.

LC's ROE % is ranked better than
94.7% of 528 companies
in the Credit Services industry
Industry Median: 5.64 vs LC: 31.83

LendingClub ROE % Historical Data

The historical data trend for LendingClub's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

LendingClub Annual Data
Trend Mar12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -16.21 -14.32 -3.48 -23.09 2.36

LendingClub Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.01 13.88 14.02 18.80 74.06

Competitive Comparison

For the Credit Services subindustry, LendingClub's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

LendingClub ROE % Distribution

For the Credit Services industry and Financial Services sector, LendingClub's ROE % distribution charts can be found below:

* The bar in red indicates where LendingClub's ROE % falls into.



LendingClub ROE % Calculation

LendingClub's annualized ROE % for the fiscal year that ended in Dec. 2021 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Dec. 2021 )/( (Total Stockholders Equity (A: Dec. 2020 )+Total Stockholders Equity (A: Dec. 2021 ))/ count )
=18.58/( (724.171+850.242)/ 2 )
=18.58/787.2065
=2.36 %

LendingClub's annualized ROE % for the quarter that ended in Jun. 2022 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Jun. 2022 )/( (Total Stockholders Equity (Q: Mar. 2022 )+Total Stockholders Equity (Q: Jun. 2022 ))/ count )
=728.24/( (887.434+1079.117)/ 2 )
=728.24/983.2755
=74.06 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income attributable to common stockholders of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income attributable to common stockholders data used here is four times the quarterly (Jun. 2022) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


LendingClub  (NYSE:LC) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %**(Q: Jun. 2022 )
=Net Income/Total Stockholders Equity
=728.24/983.2755
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(728.24 / 1297.552)*(1297.552 / 5880.595)*(5880.595 / 983.2755)
=Net Margin %*Asset Turnover*Equity Multiplier
=56.12 %*0.2206*5.9806
=ROA %*Equity Multiplier
=12.38 %*5.9806
=74.06 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %**(Q: Jun. 2022 )
=Net Income/Total Stockholders Equity
=728.24/983.2755
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (728.24 / 200.424) * (200.424 / 0) * (0 / 1297.552) * (1297.552 / 5880.595) * (5880.595 / 983.2755)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 3.6335 * N/A * 0 % * 0.2206 * 5.9806
=74.06 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Jun. 2022) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Jun. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.


Be Aware

Net income attributable to common stockholders is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


LendingClub ROE % Related Terms

Thank you for viewing the detailed overview of LendingClub's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


LendingClub Business Description

LendingClub logo
Traded in Other Exchanges
Address
595 Market Street, Suite 200, San Francisco, CA, USA, 94105
LendingClub Corp is a company engaged in operating an online lending marketplace platform that connects borrowers and investors for the provision of the loan facility. It offers investors access to an asset class that has generally been closed to many investors and only available on a limited basis to institutional investors. The company through the platform offer loan products such as personal, education and patient finance, small business and auto to interested investors. It generates a majority of the revenue from the transaction fees received from the platform's role in accepting and decisioning applications on behalf of the bank partners to enable loan originations.
Executives
Harris Adrienne director 150 NORTH RIVERSIDE PLAZA SUITE 5200 CHICAGO IL 60606
Selleck Erin director C/O BROADWAY FINANCIAL CORPORATION 5055 WILSHIRE BLVD. SUITE 500 LOS ANGELES CA 90036
Landon Allan R director 130 MERCHANT ST 22ND FLR HONOLULU HI 96813
Armstrong Annie officer: Chief Risk Officer C/O LENDINGCLUB CORPORATION 595 MARKET ST. #200 SAN FRANCISCO CA 94105
Shanda Global Investment Ltd 10 percent owner 303 TWIN DOLPHIN DRIVE #6054 REDWOOD CITY CA 94065
Zeisser Michael P director
Pace Brandon officer: General Counsel and Secretary C/O LENDINGCLUB CORPORATION 595 MARKET ST, SUITE 200 SAN FRANCISCO CA 94105
Momen Ronnie officer: Chief Lending Officer C/O LENDINGCLUB CORPORATION SAN FRANCISCO CA 94105
Kay Valerie officer: Chief Capital Officer C/O LENDINGCLUB CORPORATION 71 STEVENSON ST, SUITE 1000 SAN FRANCISCO CA 94105
Koohestani Bahman officer: Chief Technology Officer 500 W. MADISON STREET #1000 CHICAGO IL 60661
Athey Susan C director C/O EXPEDIA, INC. 333 108TH AVE NE BELLEVUE WA 98004
Shanda Group Usa Ltd 10 percent owner 2735 SAND HILL ROAD #140 MENLO PARK CA 94025
Mccord Patricia J director C/O NETFLIX, INC 100 WINCHESTER CIRCLE LOS GATOS CA 95032
Stack Fergal officer: SVP, Corporate Controller C/O LENDINGCLUB CORPORATION 71 STEVENSON ST., SUITE 300 SAN FRANCISCO CA 94105
Denman Kenneth D director

LendingClub Headlines

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