Q3 2024 Lexinfintech Holdings Ltd Earnings Call Transcript
Key Points
- LexinFintech Holdings Ltd (LX) reported a significant increase in net profit, reaching CNY310 million, marking a 36.7% growth quarter over quarter.
- The company achieved a record low funding cost of 4.28%, which is nearly 100 basis points lower than the previous quarter.
- The net profit margin improved to 8.45%, representing a quarter-over-quarter increase of 223 basis points.
- LexinFintech Holdings Ltd (LX) has successfully reduced the risk level of new loans, with the FPD7 indicator decreasing by about 13% compared to the second quarter.
- The company plans to increase its dividend payout ratio from 20% to 25% of net profit starting in 2025, indicating confidence in future profitability.
- Total revenue remained flat at CNY3.7 billion compared to the previous quarter, indicating limited top-line growth.
- Tech-empowered service income fell by 28.2% quarter over quarter due to product mix upgrades.
- E-commerce business revenue dropped by 29.5% quarter over quarter, attributed to a higher base from the previous quarter's shopping festival.
- Processing and servicing costs increased by 16.1% quarter over quarter due to intensified loan collection efforts.
- The macroeconomic environment remains uncertain, which could impact future loan origination volumes and overall growth.
Good day and thank you for standing by. Welcome to Lexinfintech third-quarter 2024 earnings conference call.
(Operator Instructions) Please be advised that today's conference is being recorded. I'd now like to hand the call over to your first speaker today, Ms. Mandy Tong. Thank you. Please go ahead.
Thank you, Desmond. Good morning and good evening, everyone. Welcome to Lexin's third-quarter 2024, earnings conference call. Our results were issued earlier today and can be found on our IR website. Joining me today are our CEO, Jay Xiao; CRO, Arvin Qiao; and CFO, James Zheng.
Before we get started, I'd like to remind you of our safe harbor statement in our earnings press release, which also applies to this call. During the call, we may refer to business outlooks and forward-looking statements, which are based on our current plans, estimates, and projections. The actual results may differ materially, and we undertake no obligation to update any forward-looking statements. Last, unless
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