QFIN's 2025 Q1: Conflicting Views on Loan Facilitation Rules, Asset Quality, and Credit Demand
Earnings DecryptTuesday, May 20, 2025 5:11 pm ET
1min read
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Revenue and Loan Growth:
- Qifu Technologies reported total revenue of CNY 4.69 billion in Q1 2025, up 6% year-over-year.
- The growth was driven by a 15.8% year-over-year increase in total loan facilitation and origination volume.
- Operational efficiency improvements led to a 5.7% take rate for the quarter, up 2.2 percentage points year-over-year.
Strong Financial Performance:
- Non-GAAP net income increased by 59.9% year-over-year to RMB 1.93 billion, with non-GAAP EPADS rising by 78.5%.
- This was attributed to strong operational efficiency and effective risk management strategies.
Risk Management and Credit Quality:
- The C2M2 ratio, measuring delinquency rates after 30-day collections, remained stable at 0.6%.
- This was maintained by a prudent risk management approach and dynamic adjustments in credit strategies.
Funding Cost Reductions:
- Qifu Technologies achieved a decrease in overall funding costs by an additional 30 basis points sequentially.
- This was due to an increased proportion of ABS in the funding mix and improved negotiating leverage on the funding side.
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Revenue and Loan Growth:
- Qifu Technologies reported total revenue of CNY 4.69 billion in Q1 2025, up 6% year-over-year.
- The growth was driven by a 15.8% year-over-year increase in total loan facilitation and origination volume.
- Operational efficiency improvements led to a 5.7% take rate for the quarter, up 2.2 percentage points year-over-year.
Strong Financial Performance:
- Non-GAAP net income increased by 59.9% year-over-year to RMB 1.93 billion, with non-GAAP EPADS rising by 78.5%.
- This was attributed to strong operational efficiency and effective risk management strategies.
Risk Management and Credit Quality:
- The C2M2 ratio, measuring delinquency rates after 30-day collections, remained stable at 0.6%.
- This was maintained by a prudent risk management approach and dynamic adjustments in credit strategies.
Funding Cost Reductions:
- Qifu Technologies achieved a decrease in overall funding costs by an additional 30 basis points sequentially.
- This was due to an increased proportion of ABS in the funding mix and improved negotiating leverage on the funding side.
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