FinVolution Group (FINV) Q2 2024 earnings summary

Executive summary

• Achieved prudent growth in China and rapid international expansion, serving 31.5 million borrowers across China, Indonesia, and the Philippines as of June 30, 2024.

• International revenue contributed over 18% of total revenue in 1H24, with international transaction volume up 32.4% YoY to RMB4.5 billion.

• Maintains leadership in China and is a top player in Indonesia and the Philippines, targeting large underbanked populations.

• Strong brand presence and significant growth in social media followers in international markets.

• Continued focus on ESG, supporting 415,000 small business owners and facilitating RMB14.2 billion in loans in Q2.

Financial highlights

• Q2 2024 net revenue was RMB3.168 billion, up 3% YoY; net profit was RMB551 million.

• Non-GAAP net profit for Q2 2024 was RMB591 million, with a non-GAAP net margin of 18.7%.

• Short-term liquidity stood at RMB8.1 billion as of June 30, 2024.

• Outstanding loan balance in China was RMB64.2 billion as of Q2 2024.

• Sales and marketing expenses rose 5% sequentially to RMB473 million.

Outlook and guidance

• Full-year 2024 China transaction volume guidance: RMB195.7–205.0 billion, up 5–10% YoY; international guidance: RMB9.4–11.0 billion, up 20–40% YoY.

• Confident in resuming faster growth as China's macro environment improves and international business momentum remains strong.

• Expect Indonesia operations to become profitable in 2024 and the Philippines to contribute to profits in 2025.

• Focus on expanding international footprint and enhancing technology for customer experience and risk management.