Q3 2024 Lufax Holding Ltd Earnings Call Transcript
Key Points
- Lufax Holding Ltd (LU) reported a 27.8% year-over-year increase in new consumer finance loans, which now account for 52% of total new loan sales.
- The company's asset quality remained stable, with the C-M3 flow rate of Puhui loans at 0.9% and a decrease in the NPL ratio for consumer finance loans from 1.4% to 1.2%.
- Lufax Holding Ltd (LU) successfully acquired a nationwide small lending license, which has the potential to reduce funding costs and diversify the product portfolio.
- The company reported a 1.9 percentage point increase in the balance take rate to 9.7% due to the 100% guarantee model.
- Lufax Holding Ltd (LU) is optimistic about the positive impact of Chinese government stimulus measures on its business performance in the long run.
- Total income decreased by 31.1% to RMB5.5 billion, primarily due to a 41.8% decrease in outstanding loan balance.
- The company recorded a net loss of RMB725 million for the third quarter.
- Credit impairment losses increased by 9% to RMB3.3 billion, driven by increased provisions related to loans and certain investment assets.
- Technology platform-based income decreased by 49.9%, affected by a decrease in retail credit services fees and the cessation of the Lujintong business.
- The macroenvironment remains challenging, with a decline in the SME development index and business conditions index, impacting small business owners.
Ladies and gentlemen, thank you for standing by and welcome to the Lufax Holding third-quarter 2024 earnings call. (Operator Instructions) Please note this event is being recorded.
Now, I'd like to hand the conference over to your speaker host today, Ms. Liu Xinyan, the company's Head of Board Office and Capital Markets. Please go ahead, ma'am.
Thank you very much. Hello, everyone, and welcome to our third-quarter 2024 earnings conference call. Our financial and operating results were released by our Newswire services earlier today and are currently available online.
Today, you will hear from our Chairman and CEO, Mr. YS Cho, who will provide an update of the recent developments and the strategies of our business. Our CFO, Mr. Peiqing Zhu, will then provide more details on our financial performance and business operations. Before we continue, I would like to refer you to our Safe Harbor statement in our earnings press release, which also applies to this call, as we will
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