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What’s SoFi’s profit recipe for the final quarter of 2023?

  • SoFi delivered as promised, attaining profitability in the last quarter of 2023.
  • The company's boosted profitability is attributed to growth in Lending, Technology Platform, and Financial Services, offsetting loan expenses.

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What’s SoFi’s profit recipe for the final quarter of 2023?

“2024 will be a transitional year,” CEO Anthony J. Noto said.



SoFi reported its fourth quarter 2023 results this week. Net income came in at $47.9 million, while revenue grew 34% from the prior-year quarter to a record $594.25 million. Breaking through a significant milestone, SoFi turned a profit in the final quarter of 2023, which has been awaited for quite some time.

Why wasn’t it profitable earlier?

Despite SoFi’s delivery of strong quarterly earnings in the past year, analysts continued to harbor concerns regarding the company’s future path and its prospects for profitability since its second-quarter financial results of 2023.

As of July 2023, SoFi Bank offered an APY of up to 4.40%, which has since increased to 4.60%, without any account fees. Additionally, customers qualifying for direct deposits could enjoy a bonus of as much as $250, which has now increased to $300. During the same period, the federal funds rate experienced a shift, touching 5.00% in the early part of the second quarter of 2023, and has since stabilized within the 5.25% to 5.50% range.

While SoFi successfully attracted customers throughout the quarters with enticing high-yield offerings and perks, the backend costs associated with these deposit relationships have been eroding the company’s profit margin.

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