Enova International (ENVA) TD Financial Services & Fintech Summit summary

Market and demand trends

• Consumer and small business credit demand remains steady, following expected seasonal patterns, with consumer demand rising post-tax refund and small business showing sequential and year-over-year growth.

• Optimism and growth plans are evident among small businesses, supported by healthy consumer spending.

• Credit performance aligns with expectations, with consumer net charge-offs peaking in Q4 and expected to trough in Q2; SMB net charge-offs remain steady at 4–5%.

Credit and customer profile

• Consumer customers are typically underserved by mainstream banks, often needing credit to manage disruptions or emergencies.

• Employment and wage growth remain strong for these customers, with spending and account balances stable despite inflation.

• Customers manage inflation through job flexibility and spending adjustments.

Small business lending strategy

• SMB borrowers are established, often with revenues under $1 million, and span 900 industries.

• Portfolio exposure has shifted from construction to professional and technical services, with average loan yields around 45% and loan sizes near $45,000.

• Strategic focus on higher-yield segments is expected to nudge yields up and keep loss rates at the upper end of the 4–5% range.