In This Article:
By Chibuike Oguh
NEW YORK (Reuters) -SoFi Technologies shares gained on Tuesday after the financial technology firm reported better-than-expected quarterly results buoyed by strong demand for its lending products.
SoFi's net revenue rose 33% to $771 million in the quarter ended in March, comprising a 24% jump in net interest income to nearly $500 million and a 13% increase in non-interest income to $273 million. Its adjusted earnings per share tripled to 6 cents from 2 cents a year earlier.
Wall Street analysts had expected revenue of about $739 million and adjusted earnings per share of 4 cents.
SoFi's shares rose as high as $14.50 following the results, up nearly 10%. It has pared those gains and was last up 1.3% to $13.37.
The average rating of 18 analysts that cover SoFi is "HOLD" and their median price target is $14, unchanged from January, according LSEG data.
SoFi said its customer base grew by 34% to 10.9 million in the quarter, representing a record 800,000 new additions. The company originated $7.2 billion worth of loans, dominated by mostly personal, student and home loans.
SoFi's results comes as U.S. consumer spending, which accounts for three-quarters of the economy and is partly fueled by credit and borrowing, has been hampered by still-high inflation as well as worries about the impact of tariffs on the economy.
(Reporting by Chibuike Oguh in New York, Editing by Franklin Paul)