Green Dot’s earnings and revenue beat analysts’ estimates | PaymentsSource

Prepaid card firm and bank holding company Green Dot reported second-quarter earnings per share and revenue that were better than expectations, overcoming regulatory pressure from the Federal Reserve. 

Non-GAAP earnings per share came in at 25 cents for the three months ended June 30, down from 37 cents in the same reporting period last year, according to the bank’s earnings supplement. Wall Street analysts expected adjusted earnings of 23 cents a share. Revenue clocked in at $407.1 million, an 11% year-over-year increase and 5.5% more than Wall Street’s $385.9 million average revenue estimate. 

The quarterly results come on the heels of a $44 million settlement with the Federal Reserve in July for alleged unfair and deceptive practices. The Austin, Texas-based fintech said in February that it set aside $20 million following the consent order from the Fed. Multiple regulators have been cracking down on bank-fintech alliances this year. 

Green Dot reported total assets of $5.5 billion, up almost 15% YoY, according to the earnings supplement.

The company tweaked its outlook for the full year, now expecting adjusted earnings at the low end of its guidance range of $1.45 to $1.59 a share.

Green Dot offers consumer and business accounts such as debit, checking, credit, prepaid and payroll cards, money processing services, tax refunds, cash deposits and disbursements, with a particular focus on serving underbanked communities. It also has a banking-as-a-service business.