LexinFintech (LX) Q4 2024 earnings summary

Executive summary

• Achieved net income of RMB 363 million in Q4 2024, up 17% quarter-over-quarter and over 100% year-over-year, with four consecutive quarters of improved profitability.

• Outstanding loan balance reached RMB 110 billion; loan origination was RMB 52 billion, up 1.9% quarter-over-quarter.

• Registered users grew to 228 million, a 2% increase quarter-over-quarter and 8.6% year-over-year.

• Maintained prudent operating strategy, focusing on high-quality asset expansion, profitability optimization, and improved risk management.

• Asset quality improved, with 90+ day delinquency ratio at 2.5%–3.6% and first payment default rate for new loans below 1%.

Financial highlights

• Q4 2024 operating revenue was RMB 3,659 million, up 4.3% year-over-year and nearly flat sequentially.

• Net income take rate increased from 1.09% in Q3 to 1.31% in Q4; net profit margin rose from 8.5% to 9.9%.

• Tech-empowerment service income surged 56.9% quarter-over-quarter and 41% year-over-year to RMB 602 million, accounting for 16% of total income.

• Gross profit for Q4 was RMB 1,274 million; full year gross profit was RMB 5,026 million, up 11.4%.

• Cash and cash equivalents at year-end were RMB 2,254 million; shareholders' equity at RMB 10,740 million.

Outlook and guidance

• 2025 guidance expects flat to single-digit loan origination growth, with significant net income increase driven by margin expansion and asset quality improvement.

• Q1 2025 GMV expected to be flat due to seasonality.

• Dividend payout ratio to increase to 25% of net profit from January 2025, with potential for further increases.

• Guidance subject to macroeconomic conditions and may be adjusted as needed.