A surge in new student loans at fintech lender SoFi 'was actually much faster than we were expecting,' said one analyst.
) reported a student-loan driven windfall in its third-quarter results while also raising its full-year guidance on revenue and predicting a quarterly profit before the end of the year.Student loan originations for the San Francisco-based fintech bank doubled in the third quarter compared to a year ago. Some American borrowers started repaying loans in October after a three-year pandemic forbearance pause.
"We saw exactly the trend that we expected in student loans in the quarter, which was a slight bump relative to where we've been in the past," SoFi CEO Anthony Noto told analysts Monday. The bank raised its full-year guidance on revenue and its go-to profit measuring stick, adjusted EBITDA, by $71 million and $12 million and more than the firm previously expected.
"Higher for longer could put pressure on these other financial companies," Noto said. "And in that environment, we would want to be a lot more conservative and actually see something like personal loans, not grow very much at all, and student loans grow marginally," he added. Shakedown or smart business? Quebec restaurants balk at hefty penalty for using competitor's payment machines
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