LexinFintech delivers strong results for the first half
LexinFintech Holdings, an online consumer finance platform for educated young adults in China, announced on Friday that it recorded robust growth for the first half, with total outstanding principal balance of loans jumping 64.5 percent year on year and number of registered users growing over 70 percent.
Its operating revenue reached 2.5 billion yuan (US$349 million), with over half of that being from financial services income. Loan facilitation and servicing fees in financial services income came to 1.2 billion yuan, representing an increase of 148 percent from the second quarter of 2018.
The Shenzhen-based firm reaped a gross profit of 1.1 billion yuan, up by 26.6 percent during the same period.
LexinFintech saw its total outstanding principal balance of loans reach 40.6 billion as of June 30, representing an increase of 64.5 percent on the same period in 2018.
Total loan originations on the platform in the second quarter rose by 57 percent year on year to stand at 26.0 billion yuan, with the weighted average tenor of loans being approximately 12.8 months and the weighted average annualized percentage rate being 25.3 percent.
The Nasdaq-listed company said its total number of registered users hit 50.2 million as of the end of June, rising 71.7 percent compared with a year ago and users with credit line reached 13.5 million, up by 50.7 percent.
Among these, the number of active users who used the company’s loan products in the second quarter reached 4.1 million, with around one-third of them being new active users.
While expanding its business, the company saw its credit performance and credit quality continue to be strong, with the 90 day+ delinquency ratio being at 1.49 percent as of the end of the second quarter.
“In spite of the changes in the industry, we continue to grow at a rapid pace, thanks to our strong funding pipeline, highly compliant operations, and advanced financial technology,” said Xiao Wenjie, Lexin’s chairman and chief executive officer.