Lufax Reports Third Quarter 2024 Financial Results
Third Quarter 2024 Financial Highlights
- Total income was
RMB5,543 million (US$790 million ) in the third quarter of 2024, compared toRMB8,050 million in the same period of 2023. - Net loss was
RMB725 million (US$103 million ) in the third quarter of 2024, compared to net profit ofRMB131 million in the same period of 2023.
(In millions except percentages, unaudited) |
Three Months Ended |
|
|
|||
|
2023 |
|
2024 |
|
YoY |
|
|
RMB |
|
RMB |
USD |
|
|
Total income |
8,050 |
|
5,543 |
790 |
|
(31.1 %) |
Total expenses |
(7,747) |
|
(6,262) |
(892) |
|
(19.2 %) |
Total expenses excluding credit |
(4,650) |
|
(2,982) |
(425) |
|
(35.9 %) |
Credit impairment losses, finance costs and |
(3,097) |
|
(3,279) |
(467) |
|
5.9 % |
Net profit/(loss) |
131 |
|
(725) |
(103) |
|
(653.7 %) |
Third Quarter 2024 Operational Highlights
- Total outstanding balance of loans was
RMB213.1 billion as ofSeptember 30, 2024 compared toRMB366.3 billion as ofSeptember 30, 2023 , representing a decrease of 41.8%, among which the outstanding balance of consumer finance loans wasRMB46.4 billion as ofSeptember 30, 2024 , compared toRMB36.1 billion as ofSeptember 30, 2023 , representing an increase of 28.7%. - Total new loans enabled were
RMB50.5 billion in the third quarter of 2024, which remained flattish compared toRMB50.5 billion in the same period of 2023, among which new consumer finance loans wereRMB26.4 billion in the third quarter of 2024, compared toRMB20.6 billion in the same period of 2023, representing an increase of 27.8%. - Cumulative number of borrowers increased by 24.1% to approximately 24.8 million as of
September 30, 2024 from approximately 20.0 million as ofSeptember 30, 2023 . - As of
September 30, 2024 , including the consumer finance subsidiary, the Company bore risk on 64.2% of its outstanding balance, up from 31.8% as ofSeptember 30, 2023 . Credit enhancement partners bore risk on the other 35.1% of the outstanding balance, among whichPing An Property & Casualty Insurance Company ofChina, Ltd. accounted for a majority. - As of
September 30, 2024 , excluding the consumer finance subsidiary, the Company bore risk on 58.7% of its outstanding balance, up from 25.7% as ofSeptember 30, 2023 . - For the third quarter of 2024, the Company's retail credit enablement business take rate[1] based on loan balance was 9.7%, as compared to 7.8% for the third quarter of 2023.
- C-M3 flow rate[2] for the total loans the Company had enabled, excluding the consumer finance subsidiary, was 0.9% in the third quarter of 2024, which is flattish compared to the second quarter of 2024. Flow rates for the general unsecured loans and secured loans the Company had enabled were 0.9% and 0.9% respectively in the third quarter of 2024, as compared to 0.9% and 0.7% respectively in the second quarter of 2024.
- Days past due ("DPD") 30+ delinquency rate[3] for the total loans the Company had enabled, excluding the consumer finance subsidiary, was 5.2% as of
September 30, 2024 , as compared to 5.4% as ofJune 30, 2024 . DPD 30+ delinquency rate for general unsecured loans was 5.5% as ofSeptember 30, 2024 , as compared to 5.8% as ofJune 30, 2024 . DPD 30+ delinquency rate for secured loans was 4.5% as ofSeptember 30, 2024 , as compared to 4.1% as ofJune 30, 2024 . - DPD 90+ delinquency rate[4] for total loans enabled, excluding the consumer finance subsidiary, was 3.2% as of
September 30, 2024 , as compared to 3.4% as ofJune 30, 2024 . DPD 90+ delinquency rate for general unsecured loans was 3.4% as ofSeptember 30, 2024 , as compared to 3.7% as ofJune 30, 2024 . DPD 90+ delinquency rate for secured loans was 2.5% as ofSeptember 30, 2024 , as compared to 2.5% as ofJune 30, 2024 . - As of
September 30, 2024 , the non-performing loan (NPL) ratio[5] for consumer finance loans was 1.2% as compared to 1.4% as ofJune 30, 2024 .
[1] The take rate of retail credit enablement business is calculated by dividing the aggregated amount of loan enablement service fees, post-origination service fees, net interest income (excluding revenue from PAObank and LUAN credit subsidiaries), guarantee income and the penalty fees and account management fees by the average outstanding balance of loans enabled for each period. |
[2] C-M3 flow rate estimates the percentage of current loans that will become non-performing at the end of three months, and is defined as the product of (i) the loan balance that is overdue from 1 to 29 days as a percentage of the total current loan balance of the previous month, (ii) the loan balance that is overdue from 30 to 59 days as a percentage of the loan balance that was overdue from 1 to 29 days in the previous month, and (iii) the loan balance that is overdue from 60 to 89 days as a percentage of the loan balance that was overdue from 30 days to 59 days in the previous month. Loans from legacy products, consumer finance subsidiary, PAObank and LUAN credit subsidiaries are excluded from the flow rate calculation. |
[3] DPD 30+ delinquency rate refers to the outstanding balance of loans for which any payment is 30 to 179 calendar days past due divided by the outstanding balance of loans. Loans from legacy products, consumer finance subsidiary, PAObank and LUAN credit subsidiaries are excluded from the calculation. |
[4] DPD 90+ delinquency rate refers to the outstanding balance of loans for which any payment is 90 to 179 calendar days past due divided by the outstanding balance of loans. Loans from legacy products, consumer finance subsidiary, PAObank and LUAN credit subsidiaries are excluded from the calculation. |
[5] Non-performing loan ratio for consumer finance loans is calculated by using the outstanding balance of consumer finance loans for which any payment is 91 or more calendar days past due and not written off, and certain restructured loans, divided by the outstanding balance of consumer finance loans. |
Mr.
Mr.
Mr.
Third Quarter 2024 Financial Results
TOTAL INCOME
Total income was
|
Three Months Ended |
|
|
||||
(In millions except percentages, |
2023 |
|
2024 |
|
YoY |
||
|
RMB |
% of income |
|
RMB |
% of income |
|
|
Technology platform-based income |
3,259 |
40.5 % |
|
1,633 |
29.5 % |
|
(49.9 %) |
Net interest income |
3,307 |
41.1 % |
|
2,687 |
48.5 % |
|
(18.8 %) |
Guarantee income |
941 |
11.7 % |
|
818 |
14.7 % |
|
(13.1 %) |
Other income |
291 |
3.6 % |
|
333 |
6.0 % |
|
14.3 % |
Investment income |
253 |
3.1 % |
|
73 |
1.3 % |
|
(71.1 %) |
Share of net profits of investments |
(1) |
0.0 % |
|
- |
- |
|
100.0 % |
Total income |
8,050 |
100.0 % |
|
5,543 |
100.0 % |
|
(31.1 %) |
-
Technology platform-based income
was
RMB1,633 million (US$233 million ) in the third quarter of 2024, compared toRMB3,259 million in the same period of 2023, representing a decrease of 49.9%, due to 1) the decrease of retail credit service fees as a result of the decrease in loan balance and 2) the decrease of referral and other technology platform-based income due to the Company's exit from the Lujintong[6] business that it had previously conducted. -
Net interest income
was
RMB2,687 million (US$383 million ) in the third quarter of 2024, compared toRMB3,307 million in the same period of 2023, representing a decrease of 18.8%, mainly due to the decrease in loan balance, partially offset by the increase of net interest income from the Company's consumer finance business. -
Guarantee income
was
RMB818 million (US$117 million ) in the third quarter of 2024, compared toRMB941 million in the same period of 2023, representing a decrease of 13.1%, primarily due to a lower average fee rate. -
Other income
was
RMB333 million (US$47 million ) in the third quarter of 2024, compared to other income ofRMB291 million in the same period of 2023. The increase was mainly due to the increased account management fees driven by improved collection performance. -
Investment income
was
RMB73 million (US$10 million ) in the third quarter of 2024, compared toRMB253 million in the same period of 2023, mainly due to the increased losses associated with certain investment assets.
[6] Lujintong was a platform the company launched in 2019, aiming to help its financial institution partners to acquire borrowers directly through dispersed sourcing nationwide. The company downscaled the operations of Lujintong in 2023 and ceased its operation by the end of |
TOTAL EXPENSES
Total expenses decreased by 19% to
|
Three Months Ended |
|
|
||||
(In millions except percentages, unaudited) |
2023 |
|
2024 |
|
YoY |
||
|
RMB |
% of income |
|
RMB |
% of income |
|
|
Sales and marketing expenses |
2,290 |
28.5 % |
|
1,148 |
20.7 % |
|
(49.9 %) |
General and administrative expenses |
500 |
6.2 % |
|
468 |
8.4 % |
|
(6.4 %) |
Operation and servicing expenses |
1,478 |
18.4 % |
|
1,096 |
19.8 % |
|
(25.8 %) |
Technology and analytics expenses |
382 |
4.7 % |
|
271 |
4.9 % |
|
(29.2 %) |
Credit impairment losses |
3,001 |
37.3 % |
|
3,270 |
59.0 % |
|
9.0 % |
Finance costs |
40 |
0.5 % |
|
59 |
1.1 % |
|
48.9 % |
Other (gains)/losses - net |
56 |
0.7 % |
|
(50) |
(0.9 %) |
|
(190.1 %) |
Total expenses |
7,747 |
96.2 % |
|
6,262 |
113.0 % |
|
(19.2 %) |
-
Sales and marketing expenses
decreased by 49.9% to
RMB1,148 million (US$164 million ) in the third quarter of 2024 fromRMB2,290 million in the same period of 2023. The decrease was mainly due to 1) decreased loan-related expenses as a result of the decrease in loan balance and 2) decreased retention expenses and referral expenses from platform service attributable to the Company's exit from the Lujintong business that it had previously conducted. -
General and administrative expenses
decreased by 6.4% to
RMB468 million (US$67 million ) in the third quarter of 2024 fromRMB500 million in the same period of 2023, mainly due to our efforts to streamline operations and the decrease of tax and surcharge. -
Operation and servicing expenses
decreased by 25.8% to
RMB1,096 million (US$156 million ) in the third quarter of 2024 fromRMB1,478 million in the same period of 2023, due to the Company's expense control measures and the contraction in our loan balance, partially offset by increased commissions associated with improved collection performance. -
Technology and analytics expenses
decreased by 29.2% to
RMB271 million (US$39 million ) in the third quarter of 2024 fromRMB382 million in the same period of 2023, primarily due to the Company's expense control measures. -
Credit impairment losses
increased by 9.0% to
RMB3,270 million (US$466 million ) in the third quarter of 2024 fromRMB3,001 million in the same period of 2023, mainly due to increased provision related to loans and certain investment assets. -
Finance costs
increased by 48.9% to
RMB59 million (US$8 million ) in the third quarter of 2024 fromRMB40 million in the same period of 2023, mainly due to the decrease of interest income from bank deposits, partially offset by the decrease of interest expenses as a result of our repayment of our C-Round Convertible Promissory Notes upon their maturity onSeptember 30, 2023 . -
Other gains
were
RMB50 million (US$7 million ) in the third quarter of 2024, compared to other losses ofRMB56 million in the same period of 2023, mainly due to the increase of government subsidies.
NET LOSS
Net loss was
LOSS PER ADS
Basic and diluted loss per American Depositary Share ("ADS") were both
BALANCE SHEET
The Company had
Conference Call Information
The Company's management will hold an earnings conference call at
Registration Link: https://dpregister.com/sreg/10193712/fdbbe67610
A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.lufaxholding.com.
The replay will be accessible through
United States: |
1-877-344-7529 |
International: |
1-412-317-0088 |
Conference ID: |
8154019 |
About
Exchange Rate Information
This announcement contains translations of certain RMB amounts into
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Statements that are not historical facts, including statements about
Investor Relations Contact
Email: Investor_Relations@lu.com
LUFAX HOLDING LTD |
|||||||||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS |
|||||||||||
(All amounts in thousands, except share data, or otherwise noted) |
|||||||||||
|
|||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
2023 |
|
2024 |
|
2023 |
|
2024 |
||||
|
RMB |
|
RMB |
|
USD |
|
RMB |
|
RMB |
|
USD |
Technology platform-based |
3,259,370 |
|
1,633,073 |
|
232,711 |
|
12,345,440 |
|
6,184,965 |
|
881,350 |
Net interest income |
3,307,385 |
|
2,686,933 |
|
382,885 |
|
10,022,932 |
|
8,247,873 |
|
1,175,313 |
Guarantee income |
940,803 |
|
817,591 |
|
116,506 |
|
3,506,208 |
|
2,592,991 |
|
369,498 |
Other income |
291,132 |
|
332,811 |
|
47,425 |
|
828,764 |
|
969,594 |
|
138,166 |
Investment income |
252,599 |
|
72,988 |
|
10,401 |
|
697,606 |
|
488,645 |
|
69,631 |
Share of net profits of |
(817) |
|
- |
|
- |
|
(2,404) |
|
(691) |
|
(98) |
Total income |
8,050,472 |
|
5,543,396 |
|
789,928 |
|
27,398,546 |
|
18,483,377 |
|
2,633,860 |
Sales and marketing expenses |
(2,290,403) |
|
(1,147,502) |
|
(163,518) |
|
(7,860,523) |
|
(4,037,137) |
|
(575,287) |
General and administrative expenses |
(499,899) |
|
(467,692) |
|
(66,646) |
|
(1,749,315) |
|
(1,460,891) |
|
(208,175) |
Operation and servicing expenses |
(1,477,852) |
|
(1,096,418) |
|
(156,238) |
|
(4,611,878) |
|
(3,751,090) |
|
(534,526) |
Technology and analytics expenses |
(382,161) |
|
(270,713) |
|
(38,576) |
|
(1,067,777) |
|
(798,446) |
|
(113,778) |
Credit impairment losses |
(3,001,108) |
|
(3,270,214) |
|
(466,002) |
|
(9,130,614) |
|
(8,691,786) |
|
(1,238,570) |
Finance costs |
(39,960) |
|
(59,492) |
|
(8,478) |
|
(364,248) |
|
(130,897) |
|
(18,653) |
Other gains/(losses) - net |
(55,794) |
|
50,279 |
|
7,165 |
|
117,062 |
|
(248,711) |
|
(35,441) |
Total expenses |
(7,747,177) |
|
(6,261,752) |
|
(892,293) |
|
(24,667,293) |
|
(19,118,958) |
|
(2,724,430) |
Profit before income tax |
303,295 |
|
(718,356) |
|
(102,365) |
|
2,731,253 |
|
(635,581) |
|
(90,570) |
Income tax expenses |
(172,322) |
|
(6,898) |
|
(983) |
|
(864,292) |
|
(1,649,625) |
|
(235,070) |
Net profit/(loss) for the period |
130,973 |
|
(725,254) |
|
(103,348) |
|
1,866,961 |
|
(2,285,206) |
|
(325,639) |
|
|
|
|
|
|
|
|
|
|
|
|
Net profit/(loss) attributable to: |
|
|
|
|
|
|
|
|
|
|
|
Owners of the Group |
93,778 |
|
(874,806) |
|
(124,659) |
|
1,731,103 |
|
(2,537,341) |
|
(361,568) |
Non-controlling interests |
37,195 |
|
149,552 |
|
21,311 |
|
135,858 |
|
252,135 |
|
35,929 |
Net profit/(loss) for the period |
130,973 |
|
(725,254) |
|
(103,348) |
|
1,866,961 |
|
(2,285,206) |
|
(325,639) |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
|
|
|
-Basic earnings/(loss) per share |
0.08 |
|
(0.56) |
|
(0.08) |
|
1.51 |
|
(1.98) |
|
(0.28) |
-Diluted earnings/(loss) per share |
0.08 |
|
(0.56) |
|
(0.08) |
|
1.51 |
|
(1.98) |
|
(0.28) |
-Basic earnings/(loss) per ADS |
0.16 |
|
(1.12) |
|
(0.16) |
|
3.02 |
|
(3.96) |
|
(0.56) |
-Diluted earnings/(loss) per ADS |
0.16 |
|
(1.12) |
|
(0.16) |
|
3.02 |
|
(3.96) |
|
(0.56) |
LUFAX HOLDING LTD |
|||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
|||||
(All amounts in thousands, except share data, or otherwise noted) |
|||||
|
|||||
|
As of |
|
As of |
||
|
2023 |
|
2024 |
||
|
RMB |
|
RMB |
|
USD |
Assets |
|
|
|
|
|
Cash at bank |
39,598,785 |
|
27,038,935 |
|
3,853,017 |
Restricted cash |
11,145,838 |
|
11,677,686 |
|
1,664,057 |
Financial assets at fair value through profit or loss |
28,892,604 |
|
30,782,221 |
|
4,386,431 |
Financial assets at fair value through other comprehensive income |
- |
|
1,280,826 |
|
182,516 |
Financial assets at amortized cost |
3,011,570 |
|
2,588,882 |
|
368,913 |
Accounts and other receivables and contract assets |
7,293,671 |
|
4,535,535 |
|
646,309 |
Loans to customers |
129,693,954 |
|
111,370,640 |
|
15,870,189 |
Deferred tax assets |
5,572,042 |
|
5,980,096 |
|
852,157 |
Property and equipment |
180,310 |
|
142,849 |
|
20,356 |
Investments accounted for using the equity method |
2,609 |
|
- |
|
- |
Intangible assets |
874,919 |
|
988,869 |
|
140,913 |
Right-of-use assets |
400,900 |
|
318,535 |
|
45,391 |
|
8,911,445 |
|
9,168,623 |
|
1,306,518 |
Other assets |
1,444,362 |
|
575,413 |
|
81,996 |
Total assets |
237,023,009 |
|
206,449,110 |
|
29,418,763 |
Liabilities |
|
|
|
|
|
Payable to platform users |
985,761 |
|
782,008 |
|
111,435 |
Borrowings |
38,823,284 |
|
41,380,262 |
|
5,896,640 |
Customer deposits |
- |
|
3,446,018 |
|
491,054 |
Current income tax liabilities |
782,096 |
|
765,850 |
|
109,133 |
Accounts and other payables and contract liabilities |
6,977,118 |
|
6,049,571 |
|
862,057 |
Payable to investors of consolidated structured entities |
83,264,738 |
|
55,667,639 |
|
7,932,575 |
Financing guarantee liabilities |
4,185,532 |
|
3,660,024 |
|
521,549 |
Deferred tax liabilities |
524,064 |
|
395,651 |
|
56,380 |
Lease liabilities |
386,694 |
|
319,161 |
|
45,480 |
Convertible promissory note payable |
5,650,268 |
|
5,895,520 |
|
840,105 |
Other liabilities |
1,759,672 |
|
1,747,155 |
|
248,968 |
Total liabilities |
143,339,227 |
|
120,108,859 |
|
17,115,375 |
Equity |
|
|
|
|
|
Share capital |
75 |
|
117 |
|
17 |
Share premium |
32,142,233 |
|
27,025,375 |
|
3,851,085 |
|
(5,642,768) |
|
(5,642,768) |
|
(804,088) |
Other reserves |
155,849 |
|
214,461 |
|
30,560 |
Retained earnings |
65,487,099 |
|
62,949,758 |
|
8,970,269 |
Total equity attributable to owners of the Company |
92,142,488 |
|
84,546,943 |
|
12,047,843 |
Non-controlling interests |
1,541,294 |
|
1,793,308 |
|
255,544 |
Total equity |
93,683,782 |
|
86,340,251 |
|
12,303,387 |
Total liabilities and equity |
237,023,009 |
|
206,449,110 |
|
29,418,763 |
|
|
|
|
|
|
LUFAX HOLDING LTD |
|||||||||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||
(All amounts in thousands, except share data, or otherwise noted) |
|||||||||||
|
|||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
2023 |
|
2024 |
|
2023 |
|
2024 |
||||
|
RMB |
|
RMB |
|
USD |
|
RMB |
|
RMB |
|
USD |
Net cash generated from/(used in) |
5,057,374 |
|
503,690 |
|
71,775 |
|
10,338,153 |
|
4,003,836 |
|
570,542 |
Net cash (used in)/generated from |
(3,712,218) |
|
(1,872,440) |
|
(266,821) |
|
(1,876,727) |
|
649,607 |
|
92,568 |
Net cash (used in) financing activities |
(8,053,741) |
|
(8,969,996) |
|
(1,278,214) |
|
(19,675,057) |
|
(13,159,057) |
|
(1,875,151) |
Effects of exchange rate changes on |
77,757 |
|
(94,812) |
|
(13,511) |
|
504,849 |
|
(9,495) |
|
(1,353) |
Net (decrease)/increase in cash and |
(6,630,828) |
|
(10,433,558) |
|
(1,486,770) |
|
(10,708,782) |
|
(8,515,109) |
|
(1,213,393) |
Cash and cash equivalents at the |
25,459,557 |
|
20,398,545 |
|
2,906,769 |
|
29,537,511 |
|
18,480,096 |
|
2,633,393 |
Cash and cash equivalents at the end |
18,828,729 |
|
9,964,987 |
|
1,419,999 |
|
18,828,729 |
|
9,964,987 |
|
1,419,999 |
|
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[1] As of
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View original content:https://www.prnewswire.com/news-releases/lufax-reports-third-quarter-2024-financial-results-302281562.html
SOURCE