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LendingClub (NYSE:LC) Return-on-Tangible-Equity

: 5.48% (As of Mar. 2023)
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Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. LendingClub's annualized net income for the quarter that ended in Mar. 2023 was $55 Mil. LendingClub's average shareholder tangible equity for the quarter that ended in Mar. 2023 was $998 Mil. Therefore, LendingClub's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2023 was 5.48%.

The historical rank and industry rank for LendingClub's Return-on-Tangible-Equity or its related term are showing as below:

LC' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -24.32   Med: -5.3   Max: 74.48
Current: 27.34

During the past 11 years, LendingClub's highest Return-on-Tangible-Equity was 74.48%. The lowest was -24.32%. And the median was -5.30%.

LC's Return-on-Tangible-Equity is ranked better than
89.11% of 505 companies
in the Credit Services industry
Industry Median: 6.42 vs LC: 27.34

LendingClub Return-on-Tangible-Equity Historical Data

The historical data trend for LendingClub's Return-on-Tangible-Equity 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 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Return-on-Tangible-Equity
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -14.95 -3.54 -24.32 2.77 34.70

LendingClub Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
Return-on-Tangible-Equity 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 22.15 81.98 17.17 9.37 5.48

Competitive Comparison

For the Credit Services subindustry, LendingClub's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Distribution

For the Credit Services industry and Financial Services sector, LendingClub's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where LendingClub's Return-on-Tangible-Equity falls in comparison to its industry or sector. The grey bar indicates the Return-on-Tangible-Equity's extreme value range as defined by GuruFocus.



LendingClub Return-on-Tangible-Equity Calculation

LendingClub's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2022 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2022 )  (A: Dec. 2021 )(A: Dec. 2022 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2022 )  (A: Dec. 2021 )(A: Dec. 2022 )
=289.685/( (682.974+986.589 )/ 2 )
=289.685/834.7815
=34.70 %

LendingClub's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2023 )  (Q: Dec. 2022 )(Q: Mar. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2023 )  (Q: Dec. 2022 )(Q: Mar. 2023 )
=54.664/( (986.589+1009.395)/ 2 )
=54.664/997.992
=5.48 %

* 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2023) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


LendingClub  (NYSE:LC) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.


LendingClub Return-on-Tangible-Equity Related Terms

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


LendingClub (NYSE:LC) 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
Andrew Labenne officer: Chief Financial Officer C/O BAKKT HOLDINGS, INC., 5500 WINDWARD PKWY., SUITE 450, ALPHARETTE GA 30005
Kathryn Reimann director C/O LENDINGCLUB CORPORATION, 595 MARKET ST., #200, SAN FRANCISCO CA 94105
Syed Faiz Ahmad director 7601 SOUTHWEST PARKWAY, AUSTIN TX 78735
Adrienne Harris director 150 NORTH RIVERSIDE PLAZA, SUITE 5200, CHICAGO IL 60606
Allan R Landon director 130 MERCHANT ST 22ND FLR, HONOLULU HI 96813
Erin Selleck director C/O BROADWAY FINANCIAL CORPORATION, 5055 WILSHIRE BLVD. SUITE 500, LOS ANGELES CA 90036
Annie Armstrong 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
Michael P Zeisser director
Brandon Pace officer: General Counsel and Secretary C/O LENDINGCLUB CORPORATION, 595 MARKET ST, SUITE 200, SAN FRANCISCO CA 94105
Ronnie Momen officer: Chief Lending Officer C/O LENDINGCLUB CORPORATION, SAN FRANCISCO CA 94105
Valerie Kay officer: Chief Capital Officer C/O LENDINGCLUB CORPORATION, 71 STEVENSON ST, SUITE 1000, SAN FRANCISCO CA 94105
Bahman Koohestani officer: Chief Technology Officer 500 W. MADISON STREET, #1000, CHICAGO IL 60661
Susan C Athey 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

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