Q2 2024 CNFinance Holdings Ltd Earnings Call Transcript
Key Points
- CNFinance Holdings Ltd (CNF) achieved a year-over-year growth of approximately 10% in outstanding loan principal, reaching RMB16 billion as of June 30, 2024.
- The company maintained a stable non-performing loans (NPL) ratio of approximately 1.2% as of June 30, 2024, consistent with the previous year.
- Interest income increased by 5% compared to the same period last year, amounting to approximately RMB930 million.
- CNFinance Holdings Ltd (CNF) successfully reduced its average financing rate by approximately 4% year-over-year, allowing for a decrease in end-user interest rates by about 1% point.
- The company observed a decrease in collaboration costs for sales partners by 3.9%, contributing to an increase in net interest and fee income after collaboration costs by 5.3%.
- Net profit for the first half of 2024 decreased to RMB48 million, compared to RMB93.1 million in the same period of 2023.
- Total interest and fees expenses increased due to a rise in the average daily balance of interest-bearing borrowings.
- Provisions for credit losses increased significantly to RMB170.8 million from RMB129.6 million in the same period of 2023, driven by an increase in outstanding loan principal.
- Other expenses surged by 62.2% to RMB97 million, primarily due to higher fees paid to third-party asset management companies for delinquent loan collections.
- The delinquency ratio for loans originated by the company increased from 15.5% as of December 31, 2023, to 17.4% as of June 30, 2024.
Hello, and welcome to the CNFinance Holdings Limited first-half of 2024 financial results conference call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to [Simon Tan], Manager of the Capital Markets Department. Please go ahead.
Thank you, Joe. Good morning and evening, and welcome to the CNFinance first half of 2024 financial results conference call. In today's call, our Director and Vice President, Mr. Qian Jun, will walk us through the operating results followed by the financial results from our Acting CFO, Ms. Li.
After that, we will have a Q&A section. Before we started, I would like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the US Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as will, expects, anticipates, future, intends, plans, believes
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