In This Article:
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Total Net Revenue: RMB4.37 billion in Q3 2024, up from RMB4.16 billion in Q2 2024 and RMB4.28 billion a year ago.
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Non-GAAP Net Income: RMB1.83 billion in Q3 2024, a 29.1% sequential increase and 54.5% year-over-year increase.
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Non-GAAP Net Income per Diluted ADS: RMB12.4, a 34.8% sequential increase and 71.5% year-over-year increase.
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Return on Equity (ROE): 32.2% in Q3 2024.
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Loan Facilitation and Origination Volume: Increased by 13.1% sequentially.
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90-Day Delinquency Rate: 2.7% in Q3 2024, down from 3.4% in Q2 2024.
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30-Day Collection Rate: 87.4% in Q3 2024, up from 86.3% in Q2 2024.
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Cash from Operations: RMB2.37 billion in Q3 2024, up from RMB1.96 billion in Q2 2024.
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Cash and Cash Equivalents: RMB9.77 billion in Q3 2024, up from RMB8.78 billion in Q2 2024.
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Share Repurchase: Approximately 13.7 million ADSs purchased for $298 million as of November 19, 2024.
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New Share Repurchase Plan: Up to $450 million starting January 1, 2025.
Release Date: November 20, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Qifu Technology Inc (NASDAQ:QFIN) achieved record profitability in Q3 2024, with non-GAAP net income reaching RMB1.83 billion, a 29.1% sequential increase and a 54.5% year-over-year increase.
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The company successfully reduced funding costs by 30 basis points sequentially, leveraging robust asset quality and strong relationships with financial partners.
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Qifu Technology Inc (NASDAQ:QFIN) reported a significant improvement in asset quality, with the D1 delinquency rate falling by 0.2 percentage points sequentially and the 30-day collection rate increasing by 1.1 percentage points.
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The capital-light segment contributed 55% of total loan facilitation and origination volume in Q3, marking a 10 percentage point increase from the same period last year.
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The company executed a substantial share repurchase plan, reducing share count and enhancing shareholder returns, with a new USD450 million buyback plan approved for 2025.
Negative Points
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Despite improvements, the macroeconomic environment remains uncertain, with Qifu Technology Inc (NASDAQ:QFIN) maintaining a cautious outlook for 2025.
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Sales and marketing expenses increased by 15% quarter-on-quarter, indicating higher costs in acquiring new users.
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The effective tax rate for Q3 was higher than usual at 23.4%, due to a RMB200 million withholding tax provision related to cash distribution.
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The company continues to face competitive pressures from both banks and other fintech players, necessitating ongoing strategic adjustments.
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Provision for risk-bearing loans increased to RMB1.63 billion in Q3, reflecting a cautious approach to potential credit losses.