Lexin(LX) Newsfilter·2025-03-18 22:00Core Viewpoint - LexinFintech Holdings Ltd. reported solid financial results for Q4 2024, demonstrating a commitment to prudent operational strategies and continuous improvement in key performance indicators, including profitability and asset quality [2][3][4]. Financial Performance - For Q4 2024, net income was RMB 363 million, a 17% increase quarter-over-quarter, marking the fourth consecutive quarter of improved profitability [3][24]. - Total loan origination reached RMB 52 billion, a 2% increase quarter-over-quarter, while the outstanding loan balance was RMB 110 billion [3][12]. - Operating revenue for Q4 2024 increased by 4.3% to RMB 3,659 million compared to Q4 2023 [12][25]. - The net income attributable to ordinary shareholders was RMB 363 million, over 100% higher than the same period last year [24][56]. Operational Highlights - The total number of registered users reached 228 million, an 8.6% increase from 210 million in 2023, with users holding credit lines increasing by 6.8% to 45.1 million [9]. - The number of cumulative borrowers with successful drawdown was 33.8 million, a 7.1% increase from 31.5 million in 2023 [9]. - The 90-day+ delinquency ratio improved to 3.6% as of December 31, 2024, down from 3.7% in the previous quarter [9]. Revenue Breakdown - Credit facilitation service income for Q4 2024 was RMB 2,712 million, a slight decrease from RMB 2,727 million in Q4 2023 [12][17]. - Tech-empowerment service income surged by 41.0% to RMB 602 million, driven by increased loan facilitation volume [12][17]. - Installment e-commerce platform service income decreased by 25.0% to RMB 969 million in Q4 2024 compared to RMB 1,292 million in Q4 2023 [9][12]. Cost Management - Funding costs decreased by 24.6% from RMB 76.2 million in Q4 2023 to RMB 57.5 million in Q4 2024, reflecting improved funding efficiency [18][29]. - Processing and servicing costs increased by 13.4% to RMB 583 million, primarily due to higher risk management and collection expenses [19][29]. Future Outlook - The company anticipates flat to single-digit growth in total loan origination for 2025, with a significant year-over-year increase in net income driven by margin expansion [5][37]. - The board approved a dividend of US$0.11 per ADS, representing 20% of net income from the second half of 2024, with plans to increase the cash dividend payout ratio to 25% starting January 1, 2025 [6][36].