Enova Second-Quarter Lending Hits Record High

Enova International provides online credit to consumers and small businesses, making its lending volumes a gauge of spending resilience, business confidence and demand outside traditional banks. Its stronger-than-expected second-quarter performance is significant because borrowers continue to seek financing despite elevated borrowing costs and an uncertain economic outlook. Management attributed the momentum to resilient consumer spending and improving sentiment among small-business owners.

Enova originated nearly $2.3 billion of loans in the second quarter, up 27% from a year earlier and the highest quarterly total in its history. The increase lifted combined loans and finance receivables to a record $5.5 billion. Credit performance also strengthened: the net charge-off ratio declined by 0.8 percentage point to 7.3%, supporting management’s view that growth has not come at the expense of overall loan quality.