Fintech lender SoFi profit jumps on strong growth in fee‑based businesses
SoFi logo in this illustration taken November 27, 2025. REUTERS/Dado Ruvic/Illustration
Jan 30 : SoFi Technologies reported a rise in fourth-quarter profit on Friday, lifted by strong loan demand and rapid growth in its fee‑based businesses.
Shares of the company rose 5.7 per cent in premarket trading.
Fintech lenders have become popular among young customers, who favor faster, app-based platforms over traditional banks that rely heavily on branches for most operations and have long-drawn processes.
SoFi's financial services business, which includes credit card and investing products, posted a 78 per cent rise in revenue in the quarter ended December 31 to $456.7 million.
Founded in 2011 as a student-loan refinancer, SoFi has expanded into personal loans, mortgages, investing and payments, targeting younger, tech-savvy customers.
Fee-based businesses help insulate fintechs from interest-rate swings. SoFi's revenue from the segment surged 53 per cent from a year earlier.
Total loan originations hit a record of $10.5 billion, up 46 per cent from a year ago, driven by continued strong demand for personal, student and home loans.
CEO Anthony Noto said credit performance was in line with expectations and overall financial health of its members across spending, investing and credit "remained strong."
FINTECH OPPORTUNITY
Earlier this month, U.S. President Donald Trump proposed a 10 per cent cap on credit card interest rates, which banks have warned could restrict consumers' access to credit.
"I would expect a meaningful contraction in credit card lending because the economics of revolving balances wouldn't work. People will still need credit and it would leave a massive gap in the market," SoFi CEO Noto told Reuters.
Personal loans could become an upfront financing option for people, Noto added, which could mean more business for fintechs.
SoFi's fourth-quarter adjusted revenue jumped 37 per cent to a record $1 billion from a year earlier, and its adjusted profit more than doubled to 13 cents per share from 5 cents.
