LexinFintech (LX, Financial), a leading Chinese digital financial services provider, announced its unaudited financial results for the fourth quarter of 2024. The company reported revenues of RMB 3.66 billion and a Non-GAAP EBIT of RMB 460 million, marking a year-over-year growth of 32.5% and a sequential increase of 12.5%. This represents the third consecutive quarter of substantial sequential growth, highlighting a continuous improvement in asset quality.
In the fourth quarter, LexinFintech's transaction volume reached RMB 51.96 billion, with an outstanding loan balance of RMB 110.27 billion. Key risk indicators showed notable improvements, with early-stage risk indicators FPD7 and FPD30+ decreasing by about 8% and 9% respectively, while the 90+ delinquency rate dropped by 3% sequentially. Funding costs have declined for six consecutive quarters, with a reduction of 26 basis points in the fourth quarter, totaling a decrease of over 200 basis points for the year.
The company announced a semi-annual dividend of approximately $0.11 per ADS, representing 20% of the net profit for the second half of the year. The dividend is expected to be distributed in May 2025 to shareholders of record as of April 17, 2025. Starting this year, LexinFintech plans to increase its dividend payout ratio to 25% of net profit, reflecting confidence in its long-term growth prospects.
LexinFintech's CEO highlighted the company's dual-focus strategy on risk management and data analytics, which has driven productivity and asset quality improvements. The company remains confident in its ability to achieve rapid operational growth in 2025 by enhancing risk management, expanding its product offerings, and meeting diverse financial needs.
The company invested RMB 151 million in R&D during the fourth quarter, an increase of 11.2% year-over-year, to bolster its technological edge. LexinFintech has implemented its proprietary AI model "Singularity" to enhance R&D efficiency, improve customer service interactions, and drive business enablement.
LexinFintech has also expanded its e-commerce and consumer finance businesses, aligning with national policies to boost consumption. The company's initiatives include the introduction of new product categories in its online mall and targeted financial products for different customer segments, significantly enhancing user engagement and activity.
International operations are progressing steadily, with positive developments in markets such as Mexico and Indonesia, contributing to improved asset profitability and operational stability.
