Lei Jianping on April 23
Lufax Holdings Limited (NYSE: LU and HKEX: 6623) today announced its financial results for the first quarter of 2024. According to the financial report, Lufax's total revenue in the first quarter of 2024 will be 6.964 billion yuan (about 964 million US dollars), a decrease of 31% from the same period in 2023.
Lufax's revenue has declined year-on-year for seven consecutive quarters, and it has only increased slightly by 2% year-on-year this quarter after declining for seven consecutive quarters.
In March 2024, Lufax's board of directors approved a special dividend of US$2.42 per ADS or US$1.21 per ordinary share, with an estimated total size of about RMB10 billion.
Xu Zhaogan, CFO of Lufax, resigned
The financial report disclosed that Xu Zhaogan, CFO of Lufax, resigned for personal reasons.
Lufax has appointed Zhu Peiqing, general manager of the financial planning department of Ping An Bank's head office, as the company's new CFO, with effect from April 30, 2024.
According to the data, Zhu Peiqing joined Ping An Bank in April 2018 and served as the general manager of the financial planning department of Ping An Bank's head office from April 2018 to April 2024.
Prior to that, she was the Managing Partner of Capgemini China's Greater China Financial Services Industry from May 2016 to April 2018 and the First Vice President and Deputy Chief Financial Officer of UOB (China) from May 2013 to May 2016. From June 2003 to May 2013, he worked at Law Bingham
Coopers, Ernst & Young and Deloitte Consulting hold a variety of roles providing audit, financial management, risk, tax and digital services to the financial industry.
Zhu Peiqing started his career at the Industrial and Commercial Bank of China in September 2002. Zhu Peiqing received a bachelor's degree in economics from the University of International Business and Economics. She is a member of AICPA, CIMA, THE Association of Chartered Certified Accountants and CPA Australia.
The overdue rate of the total loan amount of more than 30 days is 6.6%
As of March 31, 2024, the balance of loans empowered by Lufax was RMB270.2 billion, a decrease of 45.4% compared to RMB495.2 billion as of March 31, 2023.
As of March 31, 2024, the cumulative number of borrowers increased by 12.4% to approximately 21.7 million from approximately 19.4 million as at March 31, 2023.
In the first quarter of 2024, Lufax's new loans were RMB48.1 billion, down 15.6% from RMB57.0 billion in the same period of 2023.
As of March 31, 2024, the overdue rate of more than 30 days for the total amount of loans empowered by Lufax (excluding consumer finance subsidiaries) was 6.6%, compared to 6.9% as of December 31, 2023.
As of March 31, 2024, the overdue rate for general unsecured loans over 30 days was 7.4%, compared to 7.7% as of December 31, 2023. The overdue rate for secured loans over 30 days was 4.5% as of March 31, 2024, compared to 4.4% as of December 31, 2023.
As of March 31, 2024, the overdue rate of more than 90 days for the total authorized loans (excluding consumer finance subsidiaries) was 4.4%, compared to 4.1% as of December 31, 2023.
As of March 31, 2024, the overdue rate for general unsecured loans over 90 days was 5.0%, compared to 4.6% as of December 31, 2023.
As of March 31, 2024, the 90-day overdue rate for all Lufax mortgages was 2.6%, compared to 2.6% as of December 31, 2023.
The non-performing loan (NPL) ratio of Lufax's consumer finance loans was 1.6% as of March 31, 2024, compared to 1.5% as of December 31, 2023.
Zhao Yongzao, Chairman and Chief Executive Officer of Lufax Holdings, said: "In the first quarter, we continued to prioritize prudent operation and long-term stability, and insisted on focusing on quality over quantity. Early-stage risk indicators improved following the completion of five major risk mitigation and diversification actions, including four portfolio changes and one business model adjustment. However, we have been patient to ensure that this success is sustainable. ”
"We have strategically shifted our product portfolio from SBO lending to a more diversified approach with a greater focus on consumer financial products. At the same time, all new loans during the quarter were disbursed by consumer finance subsidiaries or enabled by guarantee companies under our 100% guarantee model. This shift will have a positive impact on income margins as it alleviates the burden of higher CGI premiums, even though the upfront provisions on these loans mean that our bottom line will take longer to recover. ”
In terms of asset quality, the C-M3 migration rate of the Pratt & Whitney business improved from the fourth quarter of 2023 to the first quarter of 2024, Zhao said. Some key operational metrics have seen initial improvements, and we believe our strategic initiatives have laid a solid foundation for continued success. We will remain vigilant and plan to operate cautiously for the foreseeable future.
Lufax's Q1 revenue was 6.964 billion, down 31% year-on-year
Lufax's revenue in the first quarter of 2024 was 6.964 billion yuan ($964 million), down 31% from 10.078 billion yuan in the same period in 2023.
Lufax's technology platform revenue for the first quarter of 2024 was RMB2,553 million (US$354 million), a decrease of 49% compared to RMB5.01 billion for the same period in 2023, due to 1) lower retail credit enablement service fees due to lower new loan sales and loan balances, and 2) lower referral and other technology platform revenue due to lower transaction volumes.
Lufax's net interest income for the first quarter of 2024 was RMB2,845 million (US$394 million), a decrease of 15% compared to RMB3,349 million for the same period in 2023, primarily due to a decrease in loan balances, partially offset by an increase in net interest income from the Company's consumer finance business.
Lufax's guarantee income for the first quarter of 2024 was 925 million yuan ($128 million), down 34.7% from 1.417 billion yuan in the same period of 2023, mainly due to lower loan balances and lower average rates.
Lufax's other income was 319 million yuan ($44 million) in the first quarter of 2024, compared with other income of 227 million yuan in the same period in 2023. The increase was mainly attributable to an increase in account management fees, driven by improved collection performance.
Lufax's investment income for the first quarter of 2024 was 322 million yuan (US$45 million), compared to 75 million yuan for the same period in 2023, mainly due to a decrease in losses related to certain risky assets, offset by an increase in income from invested assets.
Lufax's Q1 costs and expenses were 6.517 billion, down 27% year-on-year
Lufax's total expenses in the first quarter of 2024 were RMB6.517 billion, down 27% from RMB8.964 billion in the same period last year.
Among them, Lufax's sales and marketing expenses in the first quarter of 2024 were RMB1.518 billion (approximately US$210 million), down 49.9% from RMB3.03 billion in the same period last year, and general and administrative expenses were RMB483 million, down 36.2% from RMB756 million in the same period last year.
Lufax's operating and service expenses for the first quarter of 2024 were RMB1,327 million, down 14.8% from RMB1,558 million in the same period last year, partially offset by higher commissions related to improved collection performance due to the company's expense control measures and lower loan balances.
Lufax's technical and analytical expenses for the first quarter of 2024 were RMB252 million, down 26.1% from RMB341 million in the same period last year, mainly due to the company's efficiency improvement and expense control measures.
Lufax's credit impairment loss in the first quarter of 2024 was RMB2,861 million, down 8.6% from RMB3,132 million in the same period last year, mainly due to a decrease in loan provisions and receivables due to improved credit performance.
Lufax's financing cost in the first quarter of 2024 was RMB58 million, down 69.2% from RMB189 million in the same period last year, mainly due to lower interest expenses due to the repayment of Series C convertible promissory notes and other debts, partially offset by lower interest income from bank deposits.
Lufax's other loss in the first quarter of 2024 was 17 million yuan, compared with other gains of 42 million yuan in the same period of 2023, mainly due to the increase in foreign exchange losses.
Lufax's Q1 net loss was 830 million yuan, which was profitable in the same period last year
Lufax added $1.05 billion in one-time dividend-related withholding tax paid in the first quarter of 2024 to support the payment of the company's special dividend declared on March 21, 2024, resulting in a net loss of $830 million ($115 million) in the first quarter of 2024, compared to a net profit of $732 million for the same period in 2023.
As of March 31, 2024, Lufax's bank deposits were 39.442 billion yuan (US$5.463 billion), compared to 39.6 billion yuan as of December 31, 2023.
As of March 31, 2024, Lufax's net assets were 92.825 billion yuan (US$12.856 billion), compared to 93.684 billion yuan as of December 31, 2023.
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