LexinFintech's Q3 2024: A Tale of Declining Loans, Rising Profits
Monday, Nov 25, 2024 6:05 pm ET
3min read In the world of tech-enabled personal financial services, LexinFintech Holdings Ltd. (NASDAQ: LX) has been making waves with its unaudited financial results for the third quarter of 2024. The Chinese fintech giant reported a mixed bag of results, showcasing a decline in loan volume coupled with a significant increase in profits. Let's dive into the details of this quarter's performance and explore the trends shaping the company's growth.
The quarter saw a notable decrease in total loan origination, with RMB51.0 billion, a 19.5% drop year-over-year. This decline is reflective of the company's prudent operational principles, as it navigates a sluggish macroeconomic recovery. Meanwhile, the outstanding loan balance stood at RMB111.2 billion, down by 3.4% quarter-over-quarter and 7.8% year-over-year, indicating a reduction in lending activity.
However, the most striking aspect of LexinFintech's Q3 2024 performance is the substantial increase in net profit. The company reported a 36.7% quarter-over-quarter increase, reaching RMB310 million. This impressive growth can be attributed to several factors, including record low funding costs, improved asset quality, and better risk management strategies.
Jay Xiao, Chairman and CEO of LexinFintech, commented on the results, highlighting the company's commitment to returning more value to shareholders. The Board approved an amended dividend payout policy, increasing the ratio to 25% of net profit starting in 2025. This move signals the company's confidence in its financial performance and its dedication to rewarding shareholders.
LexinFintech's user base continued to expand, with registered users reaching 223 million, up 9.3% year-over-year. The company's persistent efforts in executing transformation strategies have led to a record low funding cost, gradual improvement in asset quality, and a substantial increase in new users with approved credit lines.
The quarter's results reflect the company's adaptability and resilience in the face of economic challenges. Despite the decline in loan volume, LexinFintech's focus on cost reduction, risk management, and user acquisition has enabled it to maintain a strong financial position. As the company looks ahead, it remains committed to delivering solid results and returning value to shareholders.
As we examine LexinFintech's Q3 2024 financial results, the following chart highlights the key metrics driving the company's performance:
In conclusion, LexinFintech's Q3 2024 financial results offer a mixed picture, with declining loan volume and rising profits. The company's ability to navigate economic challenges and maintain strong financial performance is a testament to its adaptability and resilience. As LexinFintech continues to execute its transformation strategies, investors can expect to see further improvements in profitability and shareholder value.
The quarter saw a notable decrease in total loan origination, with RMB51.0 billion, a 19.5% drop year-over-year. This decline is reflective of the company's prudent operational principles, as it navigates a sluggish macroeconomic recovery. Meanwhile, the outstanding loan balance stood at RMB111.2 billion, down by 3.4% quarter-over-quarter and 7.8% year-over-year, indicating a reduction in lending activity.
However, the most striking aspect of LexinFintech's Q3 2024 performance is the substantial increase in net profit. The company reported a 36.7% quarter-over-quarter increase, reaching RMB310 million. This impressive growth can be attributed to several factors, including record low funding costs, improved asset quality, and better risk management strategies.
Jay Xiao, Chairman and CEO of LexinFintech, commented on the results, highlighting the company's commitment to returning more value to shareholders. The Board approved an amended dividend payout policy, increasing the ratio to 25% of net profit starting in 2025. This move signals the company's confidence in its financial performance and its dedication to rewarding shareholders.
LexinFintech's user base continued to expand, with registered users reaching 223 million, up 9.3% year-over-year. The company's persistent efforts in executing transformation strategies have led to a record low funding cost, gradual improvement in asset quality, and a substantial increase in new users with approved credit lines.
The quarter's results reflect the company's adaptability and resilience in the face of economic challenges. Despite the decline in loan volume, LexinFintech's focus on cost reduction, risk management, and user acquisition has enabled it to maintain a strong financial position. As the company looks ahead, it remains committed to delivering solid results and returning value to shareholders.
As we examine LexinFintech's Q3 2024 financial results, the following chart highlights the key metrics driving the company's performance:
LX
Date | Gross Loans(USD) | Gross Loans YoY% |
|---|---|---|
| 2021 Q2 | -- | -- |
| 2021 Q3 | -- | -- |
| 2021 Q4 | -- | -- |
| 2022 Q1 | -- | -- |
| 2022 Q2 | -- | -- |
| 2022 Q3 | -- | -- |
| 2022 Q4 | -- | -- |
| 2023 Q1 | -- | -- |
| 2023 Q2 | -- | -- |
| 2023 Q3 | -- | -- |
| 2023 Q4 | -- | -- |
| 2024 Q1 | -- | -- |
Name |
|---|
| LexinfintechLX |
| LexinfintechLX |
| LexinfintechLX |
| LexinfintechLX |
| LexinfintechLX |
| LexinfintechLX |
| LexinfintechLX |
| LexinfintechLX |
| LexinfintechLX |
| LexinfintechLX |
| LexinfintechLX |
| LexinfintechLX |
In conclusion, LexinFintech's Q3 2024 financial results offer a mixed picture, with declining loan volume and rising profits. The company's ability to navigate economic challenges and maintain strong financial performance is a testament to its adaptability and resilience. As LexinFintech continues to execute its transformation strategies, investors can expect to see further improvements in profitability and shareholder value.
