SoFi Technologies announced its first-quarter profit doubled, fueled by record loan originations and member growth. Loan demand has seen a significant uptick as U.S. consumers and the economy demonstrate resilience amid global uncertainties.
Total loan originations reached a new high of $12.2 billion in the first quarter, boosted by strong performance in personal, student, and home loan segments. The company also reported a 35% increase in its member base, reaching a record 14.7 million year-over-year.
"The health of our consumer base remains strong. We saw record loan growth in the first quarter with strong demand expected for the second quarter," stated SoFi CEO Anthony Noto. He noted that point-of-sale debit spending remains robust with credit performance meeting expectations.
SoFi, which has expanded from student loan refinancing to a comprehensive digital financial services platform, continues to challenge traditional banking. Noto highlighted that legacy banks are hampered by outdated systems, allowing SoFi to gain market share.
The fintech's net interest income rose 39% to $693 million, with fee-based revenues increasing 23% to $386.8 million. First-quarter profit surged to 12 cents per share, up from 6 cents a year ago, while adjusted revenue climbed 41% to a record $1.1 billion.