LexinFintech Holdings Ltd. Reports Fourth Quarter and Full Year 2024 Unaudited Financial Results

Core 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. 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] - Operating revenue increased by 4.3% from RMB 3,509 million in Q4 2023 to RMB 3,659 million in Q4 2024 [12] - Net income attributable to ordinary shareholders was RMB 363 million, over 100% higher than Q4 2023 [24] Operational Highlights - The total number of registered users reached 228 million, an 8.6% increase from 210 million in 2023 [9] - The number of active users who used loan products in Q4 2024 was 4.7 million, a slight decrease of 0.7% from the previous year [9] - Cumulative borrowers with successful drawdown increased to 33.8 million, a 7.1% rise from 31.5 million in 2023 [9] Revenue Breakdown - Credit facilitation service income was RMB 2,712 million in Q4 2024, a slight decrease from RMB 2,727 million in Q4 2023 [12] - Tech-empowerment service income surged by 41.0% to RMB 602 million, driven by increased loan facilitation volume [17] - Installment e-commerce platform service income decreased by 25.0% to RMB 969 million in Q4 2024 [9] Cost Management - Funding costs decreased by 24.6% from RMB 76.2 million in Q4 2023 to RMB 57.5 million in Q4 2024 [18] - Processing and servicing costs increased by 13.4% to RMB 583 million, attributed to higher risk management and collection expenses [19] Future Outlook - For 2025, the company expects flat to single-digit growth in total loan origination, 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]