LexinFintech Reports Strong 2024 Financial Results

Lexinfintech ( (LX) ) has released its Q4 earnings. Here is a breakdown of the information Lexinfintech presented to its investors.

LexinFintech Holdings Ltd., a technology-driven personal financial service provider in China, has reported its unaudited financial results for the fourth quarter and full year of 2024, highlighting its role in connecting consumers with financial institutions through innovative credit and risk management solutions.

In the fourth quarter of 2024, LexinFintech achieved a net income of RMB363 million, marking a 17% increase from the previous quarter and a significant improvement from the same period last year. The company also reported a total loan origination of RMB52 billion, reflecting a modest 2% quarter-over-quarter growth. The board of directors has approved a dividend of US$0.11 per ADS, with plans to increase the cash dividend payout ratio to 25% of net income starting in 2025.

Key financial metrics for the full year 2024 include a total operating revenue of RMB14,204 million, an 8.8% increase from 2023. The credit facilitation service income rose by 13.8% to RMB11,000 million, while tech-empowerment service income increased by 14.7% to RMB1,881 million. However, the installment e-commerce platform service income saw a decline of 24.5% to RMB1,322 million. Despite a decrease in active users, the company maintained a strong user base with 228 million registered users by the end of 2024.

LexinFintech’s strategic focus on improving asset quality and operational efficiency has resulted in a better revenue mix and reduced funding costs. The 90-day delinquency ratio improved slightly to 3.6%, and the first payment default rate for new loans remained below 1%. Looking forward, the company anticipates flat to single-digit growth in loan origination for 2025, with a significant increase in net income driven by margin expansion.

Overall, LexinFintech remains committed to its prudent operating strategy, prioritizing asset quality and profitability enhancement to sustain steady growth amid macroeconomic uncertainties. The management’s outlook for 2025 reflects cautious optimism, with expectations of continued improvement in financial performance.