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SoFi Just Hired a New Chief Risk Officer


  • SoFi (SOFI) has named JPMorgan Chase (JPM) veteran Arun Pinto as its new Chief Risk Officer (CRO).
  • Former CRO Aaron Webster will remain with the company in a new role.
  • SOFI stock is down by about 15% so far this year.
SOFI stock - SoFi Just Hired a New Chief Risk Officer

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SoFi (NASDAQ:SOFI) stock is in the spotlight after the company announced the appointment of Arun Pinto as its Chief Risk Officer (CRO). Pinto has decades of risk management experience in a number of high-level roles. Former CRO Aaron Webster will stay with the company in his new role as Executive Vice President, Global Operations, Business Risk and Latin America.

Prior to SoFi, Pinto worked at Wells Fargo (NYSE:WFC) as its CRO of Consumer and Small Business Banking for nearly three years. Before that, the executive held several roles at JPMorgan Chase (NYSE:JPM), such as CRO of Auto and Managing Director, for nine years. Pinto received his Bachelor of Applied Science in Chemical Engineering from the University of California, Berkeley in 2001.

SOFI Stock: Arun Pinto Appointed as CRO

Pinto isn’t the only employee with a background in risk management to recently join the team. On Jan. 25, SoFi appointed Federal Reserve veteran Dana Green to its Board of Directors.

“From 2010 to early 2023, Ms. Green was in charge of supervising (in 5-year time periods) systemically important financial institutions with complex risk profiles. Ms. Green also supervised several complex institutions during times of stress,” said SoFi.

Keeping track of SoFi’s risk management is extremely important due to its involvement with a variety of loans and lending services.

Shares of SOFI stock initially rallied higher after the company reported its fourth-quarter earnings on Jan. 29. However, the gains quickly reversed, with SOFI now down by about 10% since the earnings release.

During the quarter, the personal finance company reported net revenue of $615.40 million, up by 35% year-over-year (YOY) compared to $456.67 million. SoFi was also profitable with a net income of $47.91 million compared to a loss of $40 million a year ago.

In terms of guidance, SoFi expects adjusted net revenue between $550 million and $560 million during the first quarter. It also forecasts compound revenue growth between 20% and 25% from 2023 to 2026.

Wall Street analysts had mixed opinions on the quarter. Morgan Stanley lowered its price target to $6.50 from $7 per share, while Goldman Sachs and Deutsche Bank raised their price targets to $8 and $12, respectively.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

Article printed from InvestorPlace Media, https://investorplace.com/2024/02/sofi-just-hired-a-new-chief-risk-officer/.

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