Yiren Digital's 2025Q2 Earnings Call: Navigating Contradictions in Crypto Strategy, Dividends, and AI Integration

Crypto Asset Strategy, Dividend Policy, Crypto Investment Strategy, Crypto Hedge Strategy, and AI Integration and Business Operations are the key contradictions discussed in Yiren Digital Ltd.'s latest 2025Q2 earnings call.



Strong Financial Services Growth and AI Integration:
- Yiren Digital's financial services segment revenue grew by 75% year-on-year to RMB 1.5 billion in the second quarter, contributing about 90% of the total net revenue.
- The growth was driven by increased demand for small revolving loan products, higher repeat borrowers, and AI-driven improvements in customer engagement and risk management.

Improved Asset Quality and Risk Management:
- The company's 1 to 30 days delinquency rate was 1.7%, while 31 to 60 days and 61 to 90 days delinquency rates were 1.1% and 1.0% respectively.
- The improvement in asset quality was attributed to enhanced risk management frameworks, including an overhauled risk rating system and stricter borrowing assessments.

Overseas Business Expansion:
- Yiren Digital's overseas loan volume in the Philippines reached nearly RMB 200 million, representing a 54% growth from the first quarter of 2025.
- The growth was supported by strong AI applications and the commencement of operations in Indonesia, expanding the company's global footprint.

Digital Insurance Line Growth:
- The company's digital insurance line showed 103% quarter-over-quarter growth in gross premiums, reaching RMB 8.3 million in Q2.
- This growth was driven by leveraging existing customer acquisition channels and the high margin potential of this digital line in offsetting traditional line declines.