LexinFintech Holdings Ltd (LX, Financial), a leading technology-empowered personal financial service enabler in China, announced its unaudited financial results for the fourth quarter ended December 31, 2024. The company reported a net income of RMB363 million, marking a 17% increase quarter-over-quarter and a 54% increase compared to the same period last year. Total loan origination reached RMB52 billion, with an outstanding loan balance of RMB110 billion. The company also declared a dividend of US$0.11 per ADS, with plans to increase the cash dividend payout ratio to 25% of net income starting January 1, 2025.
Positive Highlights
- Net income increased by 17% quarter-over-quarter to RMB363 million.
- Total loan origination reached RMB52 billion, a 2% increase from the previous quarter.
- Asset quality improved, with a decline in risk indicators for newly originated and overall assets.
- Tech-empowerment service income rose by 41% year-over-year.
- Dividend payout increased to 25% of net income starting 2025.
Negative Highlights
- Total loan originations decreased by 15.2% year-over-year in Q4 2024.
- Installment e-commerce platform service income decreased by 2.9% year-over-year.
- Number of active users for loan products decreased by 0.7% year-over-year in Q4 2024.
Financial Analyst Perspective
From a financial analyst's perspective, LexinFintech Holdings Ltd (LX, Financial) has demonstrated robust financial performance in Q4 2024, with significant improvements in net income and asset quality. The company's strategic focus on enhancing profitability and maintaining asset quality has yielded positive results, as evidenced by the increase in net income and the decline in risk indicators. However, the decrease in total loan originations and active users for loan products may warrant attention, as these could impact future growth prospects.
Market Research Analyst Perspective
As a market research analyst, LexinFintech Holdings Ltd (LX, Financial) appears to be well-positioned in the personal financial services sector, leveraging technology to enhance its offerings. The company's focus on tech-empowerment services and its ability to improve asset quality are key differentiators in a competitive market. However, the decline in loan originations and active users suggests potential challenges in market penetration and customer retention, which the company may need to address to sustain its growth trajectory.
Frequently Asked Questions (FAQ)
Q: What was LexinFintech's net income for Q4 2024?
A: LexinFintech's net income for Q4 2024 was RMB363 million.
Q: How much did LexinFintech's total loan origination amount to in Q4 2024?
A: Total loan origination in Q4 2024 was RMB52 billion.
Q: What is the new dividend payout ratio starting in 2025?
A: The new dividend payout ratio will be 25% of net income starting in 2025.
Q: How did LexinFintech's tech-empowerment service income perform in Q4 2024?
A: Tech-empowerment service income increased by 41% year-over-year in Q4 2024.
Read the original press release here.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
