SoFi Technologies Inc. shares rose the most in almost a year after the online bank raised its revenue guidance, citing benefits from deposit growth and lower funding costs on loans.
(Bloomberg) — SoFi Technologies Inc. shares rose the most in almost a year after the online bank raised its revenue guidance, citing benefits from deposit growth and lower funding costs on loans.
SoFi now expects adjusted net revenue this year of $1.97 billion to $2.03 billion, up from its prior guidance of $1.96 billion to $2.02 billion, the financial-technology company said Monday.
Deposits climbed as the firm avoided the problems plaguing the regional-banking industry, where a run on deposits earlier this year led to the collapse of several lenders. SoFi, which is shooting for a 30% return on equity, has used its bank charter to weather many of the cost challenges other financial-technology companies have faced with the sharp rise in interest rates.
“As a result of this growth in high-quality deposits, we have benefited from a lower cost of funding for our loans,” Chief Executive Officer Anthony Noto said in a statement announcing second-quarter results. “Our deposit funding also increases our flexibility to capture additional net interest margin and optimize returns, a critical advantage in light of notable macro uncertainty.”
Read More: SoFi CEO Aims to Turn Former Anti-Bank Into Financial Titan
Total deposits at the end of the second-quarter reached $12.7 billion, up from $7.34 billion at the end of last year, the San Francisco-based lender said.
Shares of the company, which have more than doubled this year, jumped as much as 21%, the biggest intraday gain since last August.
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