The following is a summary of the LexinFintech Holdings Ltd. (LX) Q3 2024 Earnings Call Transcript:

Financial Performance:

• LexinFintech reported Q3 2024 revenue of RMB 3.7 billion, with a net profit of RMB 310 million, marking a return to steady growth.

• The net profit margin increased to 8.45%, a quarter-over-quarter rise of 223 basis points, primarily due to decreased overall portfolio risk and enhanced asset quality.

• Revenue remained steady while net profit experienced a significant increase by 36.7% quarter over quarter.

Business Progress:

• LexinFintech is focusing on high-quality micro and small business loans to enhance operations and optimize funding strategies.

• Intense investment in technology and R&D (RMB 149 million in Q3) to support advanced risk management and improved customer services.

• The Intelligent Credit Platform was launched, introducing a capital-light, profit-sharing model aiding in risk distribution and technology service revenue generation.

Opportunities:

• Expansion in the high-quality Small and Micro Business Owner segment through enhanced operations and acquisition channels.

• Growth in super prime Salary Workers loans, restructured pricing strategies, and a focus on credit line and pricing adjustments to boost borrowing.

Risks:

• Despite improvements, the company notes the gradual maturation of portfolios with high risks and continues to anticipate challenges regarding asset quality and risk management.

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