Q2 2026 Noah Holdings Ltd Earnings Call Transcript
Key Points
- Noah Holdings Ltd (NOAH) reported a 34% year-over-year increase in operating income and a record operating margin of 36.3% for the first half of 2026, driven by disciplined cost management and an increasingly efficient operating model.
- The AI Wealth Management Department model achieved its first meaningful proof point in Singapore, with AUM growing from less than US$100 million to over US$400 million and reaching monthly profitability in July 2026.
- Performance-based income (carry) reached RMB238 million in the first half of 2026, up 364% year-over-year, demonstrating the strength of the company's investment capabilities.
- US dollar-denominated AUM increased 11.7% year-over-year, while overseas RM headcount declined 36.2%, indicating a successful decoupling of asset growth from headcount expansion.
- The company maintains a strong balance sheet with RMB5 billion in cash, zero interest-bearing debt, and a current ratio of 4.3 times, supporting its commitment to shareholder returns.
- Noah Holdings Ltd (NOAH) has made significant progress in resolving the legacy CAMSI matter, with over 80% of affected clients accepting the new settlement plan, reducing uncertainty and contingent liabilities.
- Net revenues from the international segment declined 21.9% year-over-year in the first half, primarily due to the deliberate contraction of the insurance business and exit from legacy referral channels.
- One-time commissions fell 44.1% year-over-year in the second quarter, largely due to a 58.2% decline in insurance-related commissions, reflecting a strategic exit from traditional high-commission products.
- Recurring management fees decreased 10.8% year-over-year in the second quarter, as legacy RMB private equity assets continue to run off.
- The company faces heightened regulatory headwinds and competition in the insurance market, which has impacted revenue streams.
- Carry income is inherently volatile and realization-dependent, making it challenging to forecast and not suitable for linear assumptions, which could lead to fluctuations in future earnings.
- The transformation is still in its early stages, with new growth engines not yet fully offsetting the decline in legacy revenue, as evidenced by the overall flat revenue growth in the first half.
Good day and welcome to the NOAA Holdings Limited second quarter and half year 2026 earnings conference call.
All participants will be in a listen-only mode.
Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.
After today's presentation, there will be an opportunity to ask questions.
To ask a question, you may press star then one on your telephone keypad and to withdraw your question, please press star then two.
You may also submit questions via the webcast.
Please note, today's event is being recorded.
I would now like to turn the conference over to Doreen Chu with investor relations. Please go ahead.
Thank you. Good morning and good evening, everyone. Welcome to Nora's second quarter 2026 earnings conference call. Joining me on the call today are Ms. Nora Wang, Co-Founder and Chair Lady Mr. Sandra Yin, Co-Founder, Director and CEO Mr. Grant Pang, CFO and Mr. Jason Wu, Deputy
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