Lufax Reports Second Quarter 2024 Financial Results

Core Viewpoint Lufax Holding Ltd reported a significant decline in total income and a net loss for the second quarter of 2024, reflecting challenges in its business operations and a strategic shift towards improving asset quality and operational efficiency. Financial Highlights - Total income for Q2 2024 was RMB 5,976 million (US$ 822 million), down 35.5% from RMB 9,270 million in Q2 2023 [2][7] - Net loss for Q2 2024 was RMB 730 million (US$ 100 million), compared to a net profit of RMB 1,004 million in Q2 2023, marking a 172.7% decline [2][14] - For the first half of 2024, total income was RMB 12,940 million (US$ 1,781 million), a decrease of 33.1% from RMB 19,348 million in the same period of 2023 [3][7] Operational Highlights - The total outstanding balance of loans decreased by 44.8% to RMB 235.2 billion as of June 30, 2024, from RMB 426.4 billion a year earlier [4] - New loans enabled in Q2 2024 were RMB 45.2 billion, down 15.5% from RMB 53.5 billion in Q2 2023 [4] - The cumulative number of borrowers increased by 17.4% to approximately 23.2 million as of June 30, 2024, from approximately 19.7 million a year earlier [4] Income Breakdown - Technology platform-based income decreased by 51.0% to RMB 1,999 million (US$ 275 million) in Q2 2024, primarily due to reduced retail credit service fees and the exit from the Lujintong business [8][9] - Net interest income fell by 19.3% to RMB 2,716 million (US$ 374 million) in Q2 2024 [9] - Guarantee income decreased by 26.0% to RMB 850 million (US$ 117 million) in Q2 2024 [9] Expense Management - Total expenses decreased by 20.3% to RMB 6,341 million (US$ 873 million) in Q2 2024 from RMB 7,957 million in Q2 2023 [11] - Sales and marketing expenses dropped by 46.0% to RMB 1,372 million (US$ 189 million) in Q2 2024 [12][13] - Credit impairment losses decreased by 14.6% to RMB 2,560 million (US$ 352 million) in Q2 2024 [13] Balance Sheet and Cash Flow - Cash at bank was RMB 37,114 million (US$ 5,107 million) as of June 30, 2024, down from RMB 39,599 million at the end of 2023 [16] - The company reported a net cash generated from operating activities of RMB 2,997 million (US$ 412 million) in Q2 2024 [28]