What caused LU's EPS to drop sharply in Q3 2024?

The EPS of Lufax Holding Ltd (NYSE: LU) dropped sharply in Q3 2024 due to several key factors:

1. **Revenue Decline**: The company experienced a significant decrease in total income, which fell by 35.5% year-over-year to CNY 5.976 billion. This reduction was primarily attributed to a decrease in revenue from business origination and operation support services, which was influenced by the uncertain macro environment and the strategic adjustment of their revenue structure.
2. **Loan Volume Decrease**: The total new loan sales dropped by 15.5% year-over-year to CNY 45.2 billion. Among these, Puhui loans, a crucial portion of their loan portfolio, saw a substantial decrease of 35% year-over-year. However, consumer finance loans experienced a positive trend, increasing by 23.6% year-over-year. This mixed trend in loan volumes contributed to the overall revenue decline and impacted profitability.
3. **Strategic Adjustments**: The company's strategic shift in revenue structure and focus on quality over quantity led to improvements in asset quality but also affected short-term revenue. This transition likely resulted in a temporary dip in earnings as the company prioritized long-term sustainability over immediate profitability.

In summary, the combined effects of reduced revenue, strategic adjustments, and macroeconomic uncertainties significantly impacted Lufax's EPS in Q3 2024, leading to a sharp drop.