Butterfield vs LendingClub

This page compares Butterfield (Bank of N.T. Butterfield & Son Limited) and LendingClub (LendingClub Corporation), examining their business models, financial performance, and market context in a neutral, accessible way. Educational content, not financial advice.

About The Companies

Butterfield (NTB)

LendingClub (LC)

LendingClub Corporation (LC) operates an online lending marketplace that connects borrowers with investors and manages loan servicing. The company earns fees from loan origination, servicing and selling loans, plus interest income on retained loan portfolios. Investors should note LendingClub’s performance is sensitive to the credit cycle, underwriting outcomes and interest-rate environments; profitability can fluctuate as loan volumes, default rates and funding costs change. Competition comes from banks, fintech lenders and marketplace platforms, and regulatory or compliance changes can affect operations. With a market capitalisation around $1.9 billion, the stock may appeal to those watching fintech disruption in consumer credit, but it carries higher credit and macroeconomic exposure than many diversified financial firms. This summary is educational only; it is not personal investment advice. Values can rise or fall and past performance does not guarantee future returns. Consider your risk tolerance and do your own research or consult a qualified adviser before investing.

Comparison Snapshot

Key Financial Metrics

NTB

Metric

$2.23B

Market Cap

$2.29B

-4.45%

Potential Profit

11.47%

Buy

Analyst Rating

Buy

Which Baskets Do They Appear In?

No baskets available in this category

Which Baskets Do They Appear In?

No baskets available in this category

Investment Analysis

Butterfield

NTB

Pros

Reported strong Q3 2025 financials with net income of $61.1 million and core earnings per share of $1.51, indicating solid profitability.
Maintains a relatively high dividend yield near 3.9%, supporting income-focused investors.
Positions well in international wealth management and private trust sectors with tailored offerings in high-growth offshore markets like Bermuda and the Cayman Islands.

Considerations

Faces projections of a slight annual revenue decline of 0.02% and an earnings drop of 5.1% over the next three years.
Net interest margin expansion may slow due to headwinds from the fully loaded loan portfolio yields.
Potential instability in large deposits and pressure on net interest margins could challenge earnings resilience going forward.

LendingClub

Pros

Specialises in digital lending with a diversified loan portfolio, harnessing technology to improve underwriting and customer experience.
Has shown ability to increase loan originations and revenue growth recently, reflecting demand for online credit solutions.
Improving credit quality and reduced provisioning expenses have contributed to better profitability metrics.

Considerations

Stock price volatility remains high, reflecting regulatory uncertainties and dependence on consumer credit trends.
Exposure to macroeconomic headwinds like rising interest rates and inflation risks impacting loan demand and repayment.
Faces competition from both traditional banks and fintech startups, which could pressure margins and growth.

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About The Companies

Comparison Snapshot

Which Baskets Do They Appear In?

Which Baskets Do They Appear In?

Investment Analysis

Butterfield

Pros

Considerations

LendingClub

Pros

Considerations

Why invest with Nemo?

Zero Commission

Trusted & Regulated

6% Interest on Cash

Discover More Comparisons

Butterfield vs Stock Yards Bancorp

Butterfield vs Enterprise Financial

Butterfield vs First Bancorp

Frequently asked questions

What is the main difference between a traditional bank like Butterfield and a digital lending platform like LendingClub in terms of business model?

How should an investor interpret ‘dividend yield’ versus ‘growth potential’ when comparing these two stocks?

What is net interest margin and why might it affect these stocks differently?

What does it mean when analyst notes mention ‘provisioning’ and ‘credit quality’ for LendingClub?

How important is a company’s earnings per share (EPS) and recent profitability when comparing these two stocks?

What market signals should an investor watch for in a bank versus a fintech lending company?

How might offshore markets like Bermuda and the Cayman Islands influence Butterfield’s business context?

What does it mean when a stock’s price volatility is described as high, and how does this relate to LendingClub?

How can an investor use this page to compare risk and return profiles side by side?

What should I consider about the provided ‘pros’ and ‘cons’ when evaluating these stocks?

Is the educational content here tailored to beginners, and what is its aim?

Educational disclaimer: should I treat these insights as personalised financial advice?

About The Companies

Comparison Snapshot