LexinFintech Holdings Ltd. (LX, Financial) experienced a significant stock price increase of over 7.8%, reaching $3.355. This surge follows news from a recent internal meeting organized by China International Capital Corporation, where LexinFintech's management revealed plans to raise the dividend payout ratio from 20% to 25% of net profit next year. Based on the current stock price, this adjustment would translate to an annual dividend yield of at least 5%.
The management also projected a substantial increase in profits for the next year, reflecting a positive outlook. Notably, LexinFintech's net profit in Q2 rose by 12% compared to Q1, indicating a trend of improving performance.
Regarding asset quality, the risk indicators showed progress, with the FPD7 of new assets in Q2 dropping by approximately 14% compared to the first quarter.
