In This Article:
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Revenue: CNY3.7 billion.
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Net Profit: CNY310 million, a 36.7% increase quarter over quarter.
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Loan Originations: CNY51 billion.
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Outstanding Loan Balance: CNY111.2 billion.
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Net Profit Margin: 8.45%, increased by 223 basis points quarter over quarter.
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Funding Costs: 4.28%, decreased by nearly 100 basis points from the previous quarter.
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Research and Development Investment: CNY149 million.
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Provision Coverage Ratio: Approximately 240% at the end of Q3.
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Dividend Payout Ratio: Planned increase from 20% to 25% starting in 2025.
Release Date: November 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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LexinFintech Holdings Ltd (NASDAQ:LX) reported a significant increase in net profit, reaching CNY310 million, marking a 36.7% growth quarter over quarter.
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The company achieved a record low funding cost of 4.28%, which is nearly 100 basis points lower than the previous quarter.
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The net profit margin improved to 8.45%, representing a quarter-over-quarter increase of 223 basis points.
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LexinFintech Holdings Ltd (NASDAQ:LX) has successfully reduced the risk level of new loans, with the FPD7 indicator decreasing by about 13% compared to the second quarter.
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The company plans to increase its dividend payout ratio from 20% to 25% of net profit starting in 2025, indicating confidence in future profitability.
Negative Points
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Total revenue remained flat at CNY3.7 billion compared to the previous quarter, indicating limited top-line growth.
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Tech-empowered service income fell by 28.2% quarter over quarter due to product mix upgrades.
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E-commerce business revenue dropped by 29.5% quarter over quarter, attributed to a higher base from the previous quarter's shopping festival.
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Processing and servicing costs increased by 16.1% quarter over quarter due to intensified loan collection efforts.
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The macroeconomic environment remains uncertain, which could impact future loan origination volumes and overall growth.
Q & A Highlights
Q: What's management's view on the growth strategy for the fourth quarter following the rollout of government policies, and can we see signs of consumer loan demand recovery? A: Mandy Dong, Investor Relations, explained that while there have been positive changes in short-term demand due to government stimulus measures, long-term recovery depends on macroeconomic improvements. The company maintains a prudent operational strategy, focusing on asset quality, and has seen a slight increase in high-quality customer demand.