The following is a summary of the Lufax Holding Ltd (LU) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Lufax's total income was at 7 billion RMB, a decrease of 30.9% from the same quarter of the previous year due to lower new loan sales and outstanding loan balance.

• The first quarter saw a decrease in new loan sales by 15.6%, caused by weak loan demand from Small Business Owners and strategic business shift from quantity to quality.

• Pre-tax profits were RMB447 million in Q1 2024, a drop from RMB1.1 billion from the same period of the previous year.

• Net loss of RMB830mn was reported for Q1 largely due to an increase in tax related to the special dividend.

Business Progress:

• Lufax has noted an improvement in overall asset quality due to effective de-risking and diversification actions.

• Despite decreased overall loan sales, new loan sales in consumer finance business increased by 46% YoY to RMB20.3 billion in Q1.

• The company completed its acquisition of Ping An OneConnect Bank, ensuring diversification in service offerings.

• Executive changes announced with CFO David resigning on April 30 and Zhu Peiqing taking his place.

• A special dividend plan of USD 2.42 per ADS or USD 1.21 per ordinary share has been proposed, pending approval at the AGM.

• Lufax expects the new loan volume to remain between RMB190 billion to RMB220 billion by year end, mirroring the previous quarter's outlook.

More details: Lufax IR

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