SOFI - SoFi By The Numbers - Watch The Small Print
2024-03-12 17:55:31 ET
Summary
- SoFi's deposit costs are high compared to traditional banks and its operating expenses are higher than peers, raising questions about the value-added of this business.
- The chargeoff rate for SoFi's personal loans has been increasing, indicating a potential problem with credit quality.
- SoFi's credit card business has a very high chargeoff rate, making it a money loser as well.
- SoFi's segment earnings ignore nearly $1 billion in expenses.
I recently wrote an article about SoFi (SOFI) for Seeking Alpha, and then was graciously interviewed on YouTube about SoFi by Seeking Alpha contributor Tannor Manson of Future Investing. Both pieces focused on one aspect of the SoFi story, namely the supply and demand for its products, an aspect I believe has been materially unappreciated by investors. But I got pushback from commentators that I said little about SoFi’s numbers. As a former professional stock analyst who spent many hours each week drilling into financial statements, that stung a bit. So I took a look at SoFi’s numbers, as presented in its annual report....
SoFi By The Numbers - Watch The Small Print