The following is a summary of the LexinFintech Holdings Ltd. (LX) Q3 2024 Earnings Call Transcript:
Financial Performance:
LexinFintech reported Q3 2024 revenue of RMB 3.7 billion, with a net profit of RMB 310 million, marking a return to steady growth.
The net profit margin increased to 8.45%, a quarter-over-quarter rise of 223 basis points, primarily due to decreased overall portfolio risk and enhanced asset quality.
Revenue remained steady while net profit experienced a significant increase by 36.7% quarter over quarter.
Business Progress:
LexinFintech is focusing on high-quality micro and small business loans to enhance operations and optimize funding strategies.
Intense investment in technology and R&D (RMB 149 million in Q3) to support advanced risk management and improved customer services.
The Intelligent Credit Platform was launched, introducing a capital-light, profit-sharing model aiding in risk distribution and technology service revenue generation.
Opportunities:
Expansion in the high-quality Small and Micro Business Owner segment through enhanced operations and acquisition channels.
Growth in super prime Salary Workers loans, restructured pricing strategies, and a focus on credit line and pricing adjustments to boost borrowing.
Risks:
Despite improvements, the company notes the gradual maturation of portfolios with high risks and continues to anticipate challenges regarding asset quality and risk management.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
