Today, LendingClub released their Q2 2020 earnings and as expected the results were pretty ugly. As the pandemic takes a big toll on the consumer lenders LendingClub’s origination numbers have dropped dramatically. To be fair, they did telegraph this in their Q1 2020 earnings call, saying that originations would be down 90% in Q2. Still, it was somewhat jarring to see the numbers in reality as demonstrated by the chart above.
LendingClub originated just $326 million in new loans in Q2, down from $2.5 billion in Q1 and $3.1 billion in Q2 2019. The last time originations were around that level was in Q1 of 2013 when they did $353 million in loans (I used to track the monthly loan originations at LendingClub before they were a public company). [Read more…]