LexinFintech Holdings Ltd. Reports Third Quarter 2024 Financial Results
LexinFintech Holdings Ltd. ('Lexin' or the 'Company') (NASDAQ:LX), a leading technology-empowered personal financial service enabler in China, has reported its unaudited financial results for the third quarter ended September 30, 2024.
Key Financial Metrics
| Metric | Q3 2024 (RMB) | Q3 2023 (RMB) | YoY Change | Q2 2024 (RMB) | QoQ Change |
|---|---|---|---|---|---|
| Total Revenue | 3,662 million | 3,509 million | +4.4% | 3,662 million | Stable |
| Net Income | 310 million | 371 million | -16.5% | 227 million | +36.7% |
| Earnings per ADS (Diluted) | 1.84 | ||||
| Adjusted Net Income | 333 million | -20.2% | |||
| Adjusted EPS per ADS (Diluted) | 1.98 |
Lexin's financial performance showed a stable quarter-over-quarter revenue and a significant increase in net profit compared to the previous quarter, thanks to improved profitability driven by a higher net revenue take rate and reduced funding costs. Year-over-year, the company experienced a decline in net income due to various macroeconomic factors.
Revenue Breakdown by Segment
| Segment | Q3 2024 (RMB) | Q3 2023 (RMB) | YoY Change |
|---|---|---|---|
| Credit Facilitation Service Income | 2,970 million | 2,686 million | +10.6% |
| Tech-Empowerment Service Income | 384 million | 454 million | -15.5% |
| Installment E-commerce Service Income | 308 million | 369 million | -16.6% |
The credit facilitation segment showed significant growth, driven by increased loan facilitation fees. However, revenue from tech-empowerment and installment e-commerce services declined due to reduced transaction volumes and profit-sharing arrangements.
Key Developments and Operational Highlights
- Total loan origination for Q3 2024 was RMB51.0 billion.
- Loan balances decreased 3.4% quarter-over-quarter.
- User base reached 223 million, with active users decreasing to 4.3 million.
- Funding costs reduced by nearly 100 basis points.
Executive Commentary
Jay Wenjie Xiao, Chairman and CEO, expressed satisfaction with the strong operational and financial results, emphasizing the company's successful transformation strategies, which led to improved asset quality and a record low funding cost. Lexin remains confident in navigating short-term economic challenges.
James Zheng, CFO, highlighted the advancements in revenue streams and the expectation for continued progress in asset quality and business transformation.
Dividend Policy Update
The board has approved an increase in the dividend payout ratio to 25% of net profit effective 2025, demonstrating the company's commitment to returning value to shareholders.
Forward Guidance
Lexin expressed caution about short-term economic conditions but remains optimistic about maintaining recovery momentum and delivering robust results in the upcoming quarters.
Stock Price Movement
Following the release of the earnings report, Lexin's stock price experienced a minor post-event change of +0.88%.
This summary offers a precise overview of Lexin's financial performance and strategic direction for interested stakeholders.
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