LexinFintech (LX, Financial) shares surged over 7.7% to $3.37 as of the latest report. The company revealed plans to potentially increase its dividend payout ratio next year from the current 20% of net profit to 25%. This change could translate to an annual dividend yield of at least 5%, based on the current stock price.
During an internal meeting organized by CICC, Lexin's management expressed optimism about significantly higher profits in the coming year. The company's Q2 net profit showed a 12% quarter-on-quarter growth, indicating an upward trend in financial performance.
In terms of asset quality, Lexin has reported an approximate 14% reduction in the FPD7 risk indicator for new assets in Q2 compared to the first quarter.
