LexinFintech Holdings Ltd. Reports Third Quarter 2024 Unaudited Financial Results

Core Viewpoint - LexinFintech Holdings Ltd. reported its unaudited financial results for Q3 2024, showing a stable loan origination but a significant year-over-year decline, while net profit increased substantially, indicating a potential business turnaround despite macroeconomic challenges [1][2]. Financial Performance - Total loan origination for Q3 2024 was approximately RMB51.0 billion, stable quarter-over-quarter but down 19.5% year-over-year [2][5]. - Outstanding loan balance was RMB111.2 billion, a decrease of 3.4% quarter-over-quarter and 7.8% year-over-year [2][5]. - Total operating revenue reached approximately RMB3.7 billion, up 4.4% year-over-year and stable quarter-over-quarter [3][14]. - Net profit for Q3 2024 was RMB310 million, a substantial increase of 36.7% compared to RMB227 million in the previous quarter [2][3]. Operational Highlights - The total number of registered users reached 223 million, a 9.3% increase from 204 million year-over-year [4]. - Users with credit lines increased to 44.1 million, up 6.1% from 41.6 million year-over-year [4]. - Active users who utilized loan products decreased to 4.3 million, down 11.4% from 4.9 million in Q3 2023 [4]. Credit Performance - The 90-day+ delinquency ratio remained stable at 3.7% as of September 30, 2024 [6]. - The first payment default rate for new loan originations was below 1% [6]. Dividend Policy - The Board approved an amended dividend payout policy, increasing the payout ratio to 25% of net profit starting in 2025 [2][28]. Future Outlook - The company remains cautious about the short-term economic outlook but is optimistic about navigating uncertainties and sustaining recovery momentum [2].