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Financial Data and Key Metrics Changes - In Q3 2024, loan originations reached RMB 51 billion, with an outstanding loan balance of RMB 111.3 billion. Revenue was RMB 3.7 billion, and net profit was RMB 310 million, indicating a return to steady growth for both revenue and net profit [7][41]. - The net profit margin improved to 8.45%, a quarter-over-quarter increase of 223 basis points, driven by reduced risk levels and enhanced asset quality [12][53]. - The funding cost decreased by 98 basis points from the previous quarter, reaching a historical low of 4.28% [13][90]. Business Line Data and Key Metrics Changes - The company focused on expanding high-quality new loans, resulting in a 78% increase in transaction volume for small and micro business loans quarter-over-quarter [15]. - The number of drawdown customers increased by 24% compared to the previous quarter, reflecting successful customer acquisition strategies [16]. - The credit facilitation and service income increased by 11.3% quarter-over-quarter, driven by higher facilitation volume growth [50]. Market Data and Key Metrics Changes - The day 1 delinquency ratio of the overall portfolio declined by around 9% compared to the previous quarter, indicating improved asset quality [8][25]. - The risk level of new customers acquired through online advertising channels decreased by 10% compared to Q2, with FPD7 for new customers significantly decreasing by about 50% compared to its peak in Q4 last year [28][80]. Company Strategy and Development Direction - The company remains committed to a prudent operational approach, focusing on reducing overall loan risk and enhancing profitability [21][22]. - The introduction of the Intelligent Credit Platform (ICP) aims to expand the addressable market while smoothing potential risk fluctuations across credit cycles [84]. - The company plans to increase its dividend payout ratio from 20% to 25% of net profit starting in 2025, reflecting confidence in future profitability [23][56]. Management's Comments on Operating Environment and Future Outlook - Management observed positive short-term changes in consumer loan demand following government economic stimulus measures but emphasized the need for ongoing macroeconomic improvement for sustainable recovery [62]. - The company expects continued improvement in asset quality and net profit growth in 2025, driven by strategic risk management and operational optimizations [68][72]. Other Important Information - The company invested RMB 149 million in research and development in Q3 to enhance its technological capabilities [17]. - The total cash position was approximately RMB 4 billion, with a provision coverage ratio of about 240% at the end of Q3 [55]. Q&A Session Summary Question: What is management's view on the growth strategy for Q4 following the government policy stimulus? - Management noted some positive short-term demand changes but emphasized that long-term recovery depends on macroeconomic conditions [62]. Question: What are the core drivers for the significant net profit growth this quarter? - The significant net profit growth was attributed to improved asset quality and record low funding costs, with expectations for continued profit growth in the future [66][70]. Question: Could you elaborate on the main measures taken in Q3 to optimize the risk level of new loans? - Key measures included focusing on high-quality channels, enhancing anti-fraud detection, and improving risk identification capabilities, resulting in a stable decline in risk levels [78][80]. Question: What is the future plan for the Intelligent Credit Platform model? - The ICP model is expected to expand the addressable market and improve asset structure, with significant growth potential anticipated [84][87]. Question: What are the driving factors behind the record low funding cost this quarter? - The funding cost decreased due to ample market liquidity and strong demand for high-quality consumer credit assets, with expectations for continued optimization in 2025 [90][92].

Exhibit 99.1 LexinFintech Holdings Ltd. Reports Third Quarter 2024 Unaudited Financial Results SHENZHEN, China, November 25, 2024 (GLOBE NEWSWIRE) -- LexinFintech Holdings Ltd. ("Lexin" or the "Company") (NASDAQ: LX), a leading technology-empowered personal financial service enabler in China, today announced its unaudited financial results for the quarter ended September 30, 2024. "Total loan origination for the third quarter reached approximately RMB51.0 billion, remaining stable on a quarter-over-quarter ...

Core Viewpoint - LexinFintech Holdings Ltd. reported its unaudited financial results for Q3 2024, showing a stable loan origination but a significant year-over-year decline, while net profit increased substantially, indicating a potential business turnaround despite macroeconomic challenges [1][2]. Financial Performance - Total loan origination for Q3 2024 was approximately RMB51.0 billion, stable quarter-over-quarter but down 19.5% year-over-year [2][5]. - Outstanding loan balance was RMB111.2 billion, a decrease of 3.4% quarter-over-quarter and 7.8% year-over-year [2][5]. - Total operating revenue reached approximately RMB3.7 billion, up 4.4% year-over-year and stable quarter-over-quarter [3][14]. - Net profit for Q3 2024 was RMB310 million, a substantial increase of 36.7% compared to RMB227 million in the previous quarter [2][3]. Operational Highlights - The total number of registered users reached 223 million, a 9.3% increase from 204 million year-over-year [4]. - Users with credit lines increased to 44.1 million, up 6.1% from 41.6 million year-over-year [4]. - Active users who utilized loan products decreased to 4.3 million, down 11.4% from 4.9 million in Q3 2023 [4]. Credit Performance - The 90-day+ delinquency ratio remained stable at 3.7% as of September 30, 2024 [6]. - The first payment default rate for new loan originations was below 1% [6]. Dividend Policy - The Board approved an amended dividend payout policy, increasing the payout ratio to 25% of net profit starting in 2025 [2][28]. Future Outlook - The company remains cautious about the short-term economic outlook but is optimistic about navigating uncertainties and sustaining recovery momentum [2].

Core Viewpoint - LexinFintech Holdings Ltd. will report its unaudited financial results for Q3 2024 on November 25, 2024, after U.S. market closes [1] Group 1: Financial Reporting - The earnings conference call is scheduled for 9:00 PM U.S. Eastern time on November 25, 2024 [2] - Participants must register online to join the conference call and will receive a dial-in number and unique access PIN upon registration [2] - A live and archived webcast of the conference call will be available on the company's investor relations website [3] Group 2: Company Overview - Lexin is a leading credit technology-empowered consumer financial service enabler in China [5] - The company's mission is to enhance financing accessibility for young consumers through technology and risk management expertise [5] - Lexin connects consumers with financial institutions using a unique model that includes online and offline channels, an installment consumption platform, and AI-driven credit risk management [5]

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-o ...

LexinFintech (LX, Financial), a leading Chinese digital consumption technology service provider, is contemplating raising its dividend payout ratio from the current 20% to 25% next year. This consideration was revealed during a recent internal meeting organized by China International Capital Corporation, which was attended by numerous institutional and high-net-worth investors. Key executives, including founder and CEO Xiao Wenjie, CFO Zheng Xigui, and CRO Qiao Zhanwen, participated in the discussions.The m ...

LexinFintech Holdings Ltd. (NASDAQ: LX ) recently delivered beneficial business figures about user base growth and cumulative borrower growth. In my view, the combination of artificial intelligence, the software used by LX, and the links with financial institutions will most likelyLondon Stock Market Research is a service offered by an ex-investment banker from the city of London. After around 11 years in the industry, I decided to drop out, and made dollars out of what I learned in business. I appreciate v ...

Investment Rating - The report maintains a **Buy** rating for LexinFintech Holdings (LX US) with a target price of **$2.40**, representing a potential upside of **38.7%** from the current price of **$1.73** [1][2] Core Views - **Revenue Take Rate Improvement**: LexinFintech's revenue take rate increased significantly, reaching **2.91%** in Q2 2024, up **37 bps YoY** and **54 bps QoQ**, driven by lower financing costs, improved asset quality of new loans, and optimized prepayment conditions [1] - **Profitability Trends**: Despite a **36% YoY decline** in GAAP net profit in Q2 2024, the company saw a **12% QoQ growth** in net profit, with revenue increasing **19% YoY** and **12% QoQ** [1] - **Asset Quality Pressure**: The 90-day delinquency rate rose to **3.7%** in Q2 2024, up **70 bps QoQ**, but leading indicators such as the 30-day recovery rate showed slight improvement, suggesting a potential recovery trend in H2 2024 [1] - **Loan Volume Decline**: Facilitated loan volume decreased **20% YoY** and **12% QoQ** in Q2 2024, with the loan balance growing only **0.9% YoY** and declining **5% QoQ** [1] - **International Expansion**: The company's business in Mexico showed strong growth, although the overall scale remains small [1] Financial Forecast Updates - **Facilitated Loan Volume**: Forecasts for 2024E, 2025E, and 2026E were revised downward by **-5.4%**, **-5.4%**, and **-6.3%**, respectively, reflecting a more conservative outlook on loan growth [2][8] - **Net Take Rate**: The net take rate for 2024E, 2025E, and 2026E was adjusted downward by **-0.20ppt**, **-0.21ppt**, and **-0.28ppt**, respectively, due to lower expected profitability [2][8] - **Net Income and Profit**: Net income forecasts for 2024E, 2025E, and 2026E were revised upward by **12.5%**, **9.9%**, and **9.2%**, respectively, while net profit forecasts were lowered by **-12.6%**, **-18.3%**, and **-22.2%** [2][8] - **ROAE**: The return on average equity (ROAE) for 2024E, 2025E, and 2026E was revised downward by **-1.3ppts**, **-2.0ppts**, and **-2.5ppts**, respectively [2][8] Business and Financial Performance - **Loan Balance**: The loan balance grew **0.9% YoY** in Q2 2024 but declined **5% QoQ**, reflecting a slowdown in loan origination [1][5] - **Revenue Growth**: Q2 2024 revenue increased **19% YoY** and **12% QoQ**, driven by higher take rates and improved asset quality [1][5] - **Profit Margins**: The company's GAAP net profit margin declined **36% YoY** but improved **12% QoQ**, indicating a potential recovery in profitability [1][5] - **Dividend Policy**: LexinFintech announced an interim dividend of **$0.072 per ADS**, representing a **20% payout ratio** [1] Industry and Peer Comparison - **Peer Ratings**: The report covers several financial technology and insurance companies, with most receiving a **Buy** rating, including QFIN US, FINV US, and LX US [9] - **Target Price Upside**: Among peers, LexinFintech has a **38.7% potential upside**, which is competitive compared to other financial technology companies like QFIN US (**9.0% upside**) and FINV US (**19.8% upside**) [9]