Lufax Holding Ltd, a prominent financial services provider for small business owners in China, reported its unaudited financial results for the second quarter ended June 30, 2024. The company experienced a significant downturn with total income dropping to RMB 5,976 million (USD 822 million) from RMB 9,270 million in the same period last year, marking a 35.5% decrease. Net loss for the quarter was RMB 730 million (USD 100 million), a stark contrast to the net profit of RMB 1,004 million in Q2 2023. The total outstanding balance of loans decreased by 44.8%, while the outstanding balance of consumer finance loans increased by 27.9%. Despite the overall decrease in new loans enabled, consumer finance loans saw a 23.6% increase. The company's operational highlights included a 17.4% increase in the cumulative number of borrowers and...Show More

Lufax Holding Ltd, a prominent financial services provider for small business owners in China, reported its unaudited financial results for the second quarter ended June 30, 2024. The company experienced a significant downturn with total income dropping to RMB 5,976 million (USD 822 million) from RMB 9,270 million in the same period last year, marking a 35.5% decrease. Net loss for the quarter was RMB 730 million (USD 100 million), a stark contrast to the net profit of RMB 1,004 million in Q2 2023. The total outstanding balance of loans decreased by 44.8%, while the outstanding balance of consumer finance loans increased by 27.9%. Despite the overall decrease in new loans enabled, consumer finance loans saw a 23.6% increase. The company's operational highlights included a 17.4% increase in the cumulative number of borrowers and a decrease in delinquency rates. Lufax's management emphasized their strategic focus on quality over quantity, which has led to improvements in asset quality. The company also highlighted its strong capital positions and low leverage. However, due to the net loss, Lufax's board of directors decided not to pay a semiannual dividend. The earnings conference call was scheduled for August 21, 2024, to further discuss these results.