LexinFintech Q1 2025 Earnings Call Transcript

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Provided by Quartr
May 21, 2025

There are 8 speakers on the call.

Operator

Good day and thank you for standing by. Welcome to Leixin First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you'll need to press 11 on your telephone.

Operator

Please translate your question to English and mute yourself after your question. You will then hear automated message advising your hand is raised. To withdraw your question, please press 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Will Tan, Head of Capital Markets.

Operator

Please go ahead.

Speaker 1

Thank you, operator. Hello, everyone. Welcome to our first quarter twenty twenty five earnings conference call. Our results were released earlier today and are currently available on our IR website. Today, you will hear from our Chairman and CEO, Mr.

Speaker 1

Jay Wenjie Xiao, who will provide an update on overall performance and the strategies of our business. Our CRO, Mr. Armen, Sang Wen Chao, will then provide more details on our risk management initiatives and updates. Lastly, our CFO, Mr. James Zeng, will discuss our financial performance.

Speaker 1

Before we continue, I would like to refer you to our Safe Harbor statement in our earnings press release, which also applies to this call, as we will be making forward looking statements. Last, please note that all figures are presented in renminbi terms and all comparisons are made on quarter over quarter basis unless otherwise stated. Please kindly note Jay and will give their whole remarks in Chinese first, then the English version will be delivered by Jay's and Arvind's AI based voices. With that, I'm now pleased to turn over the call to Mr. Jay Wenjie Xiao, Chairman and CEO of Lexin.

Speaker 1

Please.

Speaker 2

Thanks for joining us today for our first quarter twenty twenty five earnings call. Despite ongoing macroeconomic uncertainties, our GAAP net profit reached $430,000,000 a record high in 13 quarters, representing quarter over quarter growth of 18.6% and year over year growth of 113%. Our first quarter results demonstrate the success of our two year transformation, centering on building a model driven by data analytics, risk management and refined operations. Having completed this challenging transformation, we have entered a new phase of high quality development. The fundamental enhancement of our core capabilities will drive sustained value creation moving forward, and we remain confident in delivering our full year performance targets.

Speaker 2

Over the past two years of transformation, we have adhered to a risk first approach, comprehensively upgrading our core business capabilities. We have iterated and optimized the full life cycle strategy, covering risk management, marketing and operations, while also strengthening our system infrastructure to achieve effective coordination between risk management and business development. By far, we have completed the upgrade of our risk management framework and established robust risk management infrastructure. Furthermore, we have built a comprehensive quantitative business analysis framework that supports differentiated credit assessment and pricing strategies tailored to various customer segments. These initiatives have resulted in significant enhancements to our refined operations.

Speaker 2

Leqing has also achieved significant progress across multiple ecosystem businesses. For our online consumer finance business, we have notably enhanced customer acquisition capabilities and efficiency by implementing model based decision making upfront at the traffic allocation stage. Building on our differentiated pricing strategy, we launched the on demand credit product, Linhua Jie flexible loan in the first quarter, featuring flexible use of credit and repayment. The new product, together with our existing products, Lejingka and Le Zhou Zhuang forms a competitive product matrix. Our overall product offering features optimized credit lines, rates and tenors making our financial solutions more competitive in the market.

Speaker 2

For our installment e commerce business, we've revamped the risk management system, upgraded the e commerce supply chain, and expanded the boundary of user development. We matched different users with tailored installment services. As a result, approval rate of installment applications increased significantly in the first quarter, driving e commerce GMV to increase by 16.2. For our offline inclusive finance business, targeting small and micro business owners, quantitative assessment is combined with manual review to accurately determine the credit lines granted for high quality users. In the first quarter, our offline inclusive finance business not only saw lower risk, but also higher product competitiveness as we continued to increase penetration of small and micro business owners in lower tier cities and strengthen localized operations.

Speaker 2

GMV from Tier four, Tier five and lower regions has accounted for over 70% of our inclusive finance GMV in the first quarter alongside sequential profit growth. For our overseas business, we have completed the upgrading of financial products in the Mexico and Indonesia markets, improved the risk management system and enhanced the operational capabilities of customer acquisition channels. In the first quarter, acquisition costs decreased by 19% quarter over quarter and the overseas business have achieved profitability. Our matured risk management capabilities, technological strength and back office support enable us to expand into more overseas markets. As these businesses develop and mature, Lexin's ecosystem will gradually become our unique competitive edge.

Speaker 2

Moving forward, we will focus on the following areas. Firstly, we will maintain a user centric approach, focusing on enhancing user experience and promoting the steady growth of high quality customers. Our strategy involves strengthening our product portfolio with more competitive offers and flexible repayment methods designed to boost user loyalty throughout the entire customer lifecycle. Additionally, consumer protection will remain a priority. We will continue to optimize customer engagement and service experiences in order to increase overall customer satisfaction.

Speaker 2

Secondly, we will strengthen synergies across our ecosystem businesses to further build our unique and differentiated competitive advantage. We will match diverse products and services to different user segments, addressing their demands for carefree consumption and flexible liquidity throughout their entire life cycle. For the installment e commerce business, we will improve the merchandise supply chain to meet the differentiated demand of users with varying risk profiles. This will help unlock consumption potential across different customer tiers and increase GMV from high quality users, enhancing customer engagement and acquisition. For the inclusive finance business, we will leverage our in house offline teams capabilities in customer acquisition and personalize one on one service.

Speaker 2

We will deepen our presence in industrial clusters and specialized markets in lower tier cities, explore and refine various business models and strengthen localized operations and deepen market penetration to increase the share of quality micro business owner customers. For the online consumer finance business, we will focus on expanding high quality customer acquisition channels, tapping into the potential of large platform partnerships and broadening our business boundaries to maintain sustainable growth and scale. Thirdly, we'll increase investment in technology, particularly in applying AI to empower various business scenarios and enhance the company's competitiveness. By locally deploying mature and high performance large AI models, we will reshape business processes, improve operational efficiency, and reduce service costs. We will explore the application of AI agents with financial adaptive capabilities in the pre lending process through autonomous decision making and task execution.

Speaker 2

We will promote process automation and decision intelligence and scenarios such as customer acquisition, operations and risk management, further enhancing the company's operational refinement Despite the volatile macroeconomic environment, evolving industry landscape and yielding uncertainties, our operational resilience has significantly improved, thanks to our continuously enhanced capabilities and unique ecosystem advantage. Therefore, we are confident in achieving sustained growth in net profit for full year 2025, reaffirming our full year 2025 profit guidance of substantial year over year growth. The company has always attached great emphasis on shareholder returns and remains committed to delivering value to our shareholders through various channels. In November 2024, we announced to increase our cash dividend payout ratio from 20% to 25% of total net profit starting from 2025. The Board of Directors has approved to further increase the dividend payout ratio to 30% of net profit effective from the second half of twenty twenty five.

Speaker 2

Now I would like to give the floor to our CRO, Arvind. Thanks.

Speaker 3

Thanks, Jay. Next, I will provide a review of our key initiatives and achievements in risk management for the first quarter. In the first quarter, we remained committed to our strategy of prioritizing asset quality, focusing on scale stability and profitability enhancement. Specifically, we focused on improving risk identification capability, optimizing risk strategy system and developing smart risk tools as well as actively exploring the application of large models in risk management. Thanks to the initiatives we've taken risks of both new and overall assets maintains the downward trend in the first quarter, leading risk indicator for new loans, first payment default FPD over seven days of the first quarter declined by about 5% compared to the previous quarter.

Speaker 3

On total loan portfolio, day one delinquency ratio decreased by about eleven percent and ninety days delinquency ratio decreased by 9% quarter over quarter. I will introduce in detail the key initiatives we've taken for the first quarter. Firstly, in terms of risk identification capabilities, we've continued to improve the performance of our risk identification models. We built a multimodal fusion model, integrating different types of heterogeneous data, including textual time series, numerical and graph features, which helped further improve the risk identification capabilities by 10%. Meanwhile, we deployed a two stage modeling structure.

Speaker 3

A standard model was used to identify the mid to long tail customer groups. We then optimized the data samples and brought additional data sources to conduct more granular risk identification for these customers, further improving the risk differentiation capabilities. Besides for customers from different channels, we conducted deep joint modeling with our channel partners. This allowed us to fully leverage both partner channel data and our own internal data to improve model performance. Secondly, we also strengthened risk management through preventive and proactive approaches.

Speaker 3

Regarding high risk assets, we adopted a preventative approach. Specifically for customers who have borrowings across multiple platforms, exhibit weaker repayment capabilities or present volatile risk profiles, we reduced or suspended their credit lines. Additionally, we optimized repayment reminders and enhanced the auto debit repayment functionality both on and after the due date to minimize the formation of overdue assets. Regarding high quality assets, we conducted a proactive approach. We promoted the growth of high quality assets by strengthening the competitiveness of offers to customers.

Speaker 3

These concerted efforts have collectively contributed to reducing risks, optimizing our asset mix and enhancing asset quality. In the second quarter, we will respond

Speaker 4

more quickly

Speaker 3

to market dynamics and asset quality performance, fully leveraging a combination of proactive and preventative risk management approaches and tools to ensure the continued decline in asset risk levels. Thirdly, we continue to ramp up the development and application of intelligent risk management tools, which significantly increased the accuracy and time efficiency of credit line and pricing decision making. We have developed credit line robot and pricing robot and gradually applied them in various business scenarios. Our AB testing results demonstrate that these robot tools substantially helped improve the effectiveness and time efficiency of decision making. Over the past year, our efforts in enhancing risk identification capabilities, building a more robust risk management framework and applying intelligent risk management tools comprehensively have contributed to a sustained decline in risk levels for both new and total assets for four consecutive quarters.

Speaker 3

Looking ahead to the second quarter of twenty twenty five, amid increased volatility in the external environment and evolving industry dynamics, we will continue to strengthen our capabilities in automated high risk assets screening and resolution, further refine credit approval and lending management and swiftly identify and address potential high risk assets. These measures are aimed at ensuring that key risk indicators remain on a downward trajectory. Next, I will hand over to our CFO, James, to provide a review of the company's financial performance for the first quarter.

Speaker 5

Thanks, Abram. I will now provide a detailed overview of our first quarter financial results. Please note that all figures are presented in renminbi terms and all comparisons are made on a quarter over quarter basis unless otherwise stated. Our first quarter performance marked another strong leap forward and we are on track on our profit growth roadmap. During the quarter, our net income increased by 18.6 percent to $430,000,000 and one hundred and thirteen point four percent year over year, even though the overall new loan volume and the loan balance declined slightly due to the Chinese New Year seasonality.

Speaker 5

Our net income margin increased to 13.9% from 9.9 last quarter. Net profit take rate, calculated as the net income divided by the average loan balance, increased to 1.58% from 1.31% from last quarter and 0.66% a year ago, advancing by 27 basis points sequentially. The net income, net income margin and the net take rate all reached the highest level in the last three years, laying a solid foundation for future profit expansion. From unit economics perspective, the 27 basis point net profit take rate improvement quarter over quarter is led by a 47 basis point increase of revenue take rate, which is calculated by dividing the sum of credit facilitation service and the tech empowerment service income after deducting the funding and the credit cost by the average loan balance. During the quarter, the revenue take rate increased from 6.22% to 6.69% of the previous quarter.

Speaker 5

The improvement of revenue take rate reflects our ongoing risk centered business transformation, which resulted in better asset quality and therefore a lower credit and funding cost and a refined business operations. The specific business execution involved focus on retaining prime customers through competitive loan offers, including lower prices and improved tenure, and migrating subprime borrowers to capital light model via Intelligent Credit Platform to reduce the risk exposure of optimized profitability. Next, I will provide more details in the following three highlights: First, reduction in credit cost driven by continuous improvement in asset quality. The reduced credit cost reflected our sustained improvements in asset quality driven by our enhanced risk management capability. The following key risk indicators demonstrated improvement.

Speaker 5

On the loan balance side, day one delinquency rate declined by eleven % and ninety day delinquency ratio declined by nearly 33 basis points from 3.6% to 3.3%. On the new loan side, on a quarterly basis, the first payment default rate over seven days decreased by about 5%, With higher quality new loans gradually replacing matured vintage loans, we expect to see continued asset quality improvement contributing to our profit expansion. Meanwhile, our provision coverage ratio, which is calculated as the total outstanding provisions divided by the total outstanding loan balance between ninety and one hundred and eighty days, stood sufficiently at 268%, the highest level since the second quarter of twenty twenty four. Second, decrease in funding costs. Funding costs for new loans and the capital heavy model dropped by nine basis points to 3.93%, further boosting our revenue take rate.

Speaker 5

While we've already achieved relatively low funding costs, we expect to maintain this advantage through improving asset quality, strengthening partnerships with funding partners and diversifying our funding sources. Third, capital light model volume growth. During the quarter, we have optimized our risk bearing arrangements by shifting more high risk volumes to the capital light model through our intelligent credit platform ICP, where we don't take principal risks for customers with risk rating beyond our preferred range. Total volume under the capital light model increased by 43% quarter over quarter and accounted for 28% of the total GMV, up from 20% of last quarter. And in the capital heavy model, we have improved competitiveness of our offering with lower pricing and improved tenure to attract prime customers.

Speaker 5

The APR was lowered about 100 basis points from 23.9% down to 22.6% for the last quarter, while at the same time, the user quality has improved, as evidenced by the super brand customers taking a higher percentage of new loans. With the Capital Light model, we migrated more subprime customers to the ICP platform, offering risk based pricing and shortened loan tenure to reduce overall risk exposure. As a result, the overall tenor for new loans under both capital heavy and capital light models slightly decreased quarter over quarter. To summarize the above three highlights, due to the improvement of credit cost and funding cost, our net profit take rate increased from 1.31 to 1.58% last quarter. Additionally, the Captur Light model volume growth has lowered the risk exposure for our business, enabled differentiated risk based pricing for high risk users, enhanced risk adjusted returns and sustained our offer competitiveness for high quality customers.

Speaker 5

Next, let's go through some key financial items. Total revenue from lending related business, which include credit facilitation and service income and the tech and power and service income combined decreased by 15% quarter over quarter. There are three factors attributing to the change: one) Lower APR of loans and the capital heavy model as our effort to attract better quality customers as mentioned earlier. Two. Increased early payoff due to more flexible early payoff terms for offer competitiveness and customer satisfaction.

Speaker 5

Three, the GMV volume shift to capital light model where the revenue is booked net of related credit cost, while in comparison, under the capital heavy model, gross revenue and credit costs are booked in two separate lines. Loan volume originated under the capital heavy model decreased by 11% quarter over quarter and accounted for 72% of total GMV, down from the 80% in the previous quarter. As a result, credit facilitation and service income, primarily associated with the capital heavy model, decreased by 19% quarter over quarter. In contrast to the decline in the credit facilitation service income, the tech empowered service income, which is primarily associated with our capital light model, increased by four percent quarter over quarter. This revenue now accounted for 20% of total revenue, up from 16% last quarter, mainly driven by the increased volume from the capitalized model and partially offset by increased provision driven by our prudent provision estimation.

Speaker 5

Similar to the revenue side of the story, total credit costs, including total provisions and fair value change of financial guarantee derivatives and loans at fair value, decreased by 40% quarter over quarter. This is partially due to the net revenue accounting method as well as the contribution from the asset quality improvement. As a cross reference, we can take a holistic view to add total revenue and credit cost and both the capital heavy and capital light models together. Total revenue from lending related business, net of total cost, was about 200,000,000.0 increased by 5.6% or RMB97 million from RMB17.2 billion last quarter. Separately, Installment e commerce platform service income decreased by 16.4%, while GMV grew by 16.2% quarter over quarter.

Speaker 5

Similarly, this difference was caused by accounting difference due to the volume mix shift between the third party sellers and the company direct sourcing. For third party sellers, only platform service commission is recognized as revenue rather than the entire transaction amount under the direct sourcing model. This structural volume mix change is evidenced by the sales rep volume from third party seller accounting for 56% of total e commerce GMV in the first quarter, up from 36% in the last quarter. As a result, our Installment e commerce platform service income decreased despite total e commerce GMV increased from RMB $970,000,000 to RMB 1,100,000,000.0. Furthermore, it's worth highlighting that the gross profit from e commerce business more than doubled in the first quarter.

Speaker 5

As a priority within our integrated business ecosystem, we'll keep growing our e commerce business moving forward. By developing tailored financial solutions that actively stimulate and fulfill the evolving consumption and financing needs across diverse customer segments, We aim to diversify our revenue structure and eventually enhance the overall operational resilience and profitability. Total operating expenses, which include processing and servicing costs, sales and marketing expenses, research and development expenses, and general and administrative expenses remained relatively stable at $1,300,000,000 Driven by the aforementioned factors, our net income in the first quarter increased by 18.6% quarter over quarter from RMB363 million to RMB430 million and our net income margin increased from 9.9% to 13.9%. For balance sheet items as of March 31, our cash position, which includes cash, cash equivalents and restricted cash, was approximately RMB5 billion. Shareholders' equity remained solid at about billion.

Speaker 5

Looking ahead, despite challenging macroeconomic environment, evolving industry landscape and geopolitical uncertainties, the management remains confident in achieving a significant year over year growth in net income, reaffirming our full year earnings guidance. This concludes our prepared remarks for today. Operator, we're now ready to take questions.

Operator

Thank you. And please translate your question to English and mute yourself after your question. To withdraw your question, please press 11 again. Please standby as we compile the Q and A roster. Our first question comes from Emma Hsu from BOFA.

Speaker 6

So how does the company address various external challenges such as the impacts of the new rules on loan facilitation business and geopolitical uncertainties on the company's listing standards? Does the company have any plans for Hong Kong IPO? This is the translation for Jay's remarks. Despite significant changes in the macroeconomic environment and industry landscape this year, the company has delivered outstanding results by adhering to strategy, focusing on risk management, data analytics and refined operations. Although external challenges persist, the company is well prepared to navigate through them and management remains confident in achieving its 2025 performance target.

Speaker 6

Regarding the new rules on loan facilitation based business, we welcome and support regulators efforts in standardizing the industry. While the full impact of these rules remain to be seen in the short term, they are expected to foster a more compliant, healthy and sustainable environment for the sector in the long run, a trend that particularly benefits large and compliant platforms like Lexi. For us, we have the capabilities and resilience to address the potential impacts of the new rules. Therefore, we are confident in achieving our full year profit target. Regarding the geopolitical uncertainties, the company has proactively taken measures to prepare, including exploring potential listings on different exchanges, including Hong Kong Stock Exchange, in order to protect the interests of all shareholders.

Speaker 6

Once any concrete plans or significant progress materialize, we will promptly disclose relevant information to the market in accordance with laws and regulation.

Operator

Thank you. Just one moment for our next question, please. Our next question comes from Alex Yee from UBS. Your line is now open.

Speaker 7

So my questions include first one is, what are the progress and development plan for your ecosystem business? And second is, can you give us more color in terms of where we are in terms of our asset quality improvement trend and how to understand the strength of your current risk management capabilities and what's your plan for the next stage? Thank you.

Speaker 6

Leixin has always had very diverse business performance in not only having online business but also offline, and we have unique competitive edge in our own ecosystem business. More specifically, as I mentioned in my remarks, for our online consumer finance business, we continue to improve the risk management capabilities and operational requirements and have witnessed a substantial enhancement in the capability and efficiency of customer acquisition. Going forward, we'll focus on providing tailored product offers to match customers with varying risk profiles, enriching our product portfolio to enhance customer offer competitiveness and expanding customer acquisition channel. Meanwhile, we will further explore collaboration with huge traffic platform, which has already exhibited good momentum this year and expanded our business model to achieve sustainable volume growth. For our installment e commerce business, we have revamped our risk management system, updated merchandise supply chain and expanded the business boundary.

Speaker 6

By tailoring installment services to users based on their risk profile, we better address diverse customer demand. Going forward, we will fully leverage our e commerce business to better engage existing customers and attract new ones, making it a key lever for us to adapt to industry changes and enhance the company's operational resilience. For our offline inclusive finance business, which is quite a unique feature of our business deployment, we have strengthened our in house channel development and optimized the risk management model to ensure the differentiated competitiveness of our products and also secure sequential increase of profit. Going forward, we will continue to increase the penetration of micro business owners in lower tier cities, enhance localized business development and increase operational efficiency. For our overseas business, we better optimize the business model and capabilities at various fronts.

Speaker 6

By far, our overseas business have achieved profit overall. Going forward, for overseas business, we will adopt a prudent approach in terms of investment and expansion. Thank you. Over the past year, we have comprehensively upgraded our risk management system across multiple fronts, including risk identification, differentiate our risk strategy, differentiated risk pricing, risk bearing models, risk monitoring and early warning, and risk management tool, etcetera. This has led to a significant improvement in our risk management strength and our ability to handle risk volatility.

Speaker 6

Thanks to our efforts and operate in the past in the past year, we have established a mature, robust, quantitative driven risk management system. As a result, risk levels of both new and overall assets have exhibited a sustained decline over the past year. In light of the persistently challenging external environment and ongoing industry uncertainties, we remain committed to our risk centric strategy and prudent operational approach. We'll further strengthen our risk management capability while actively exploring the application of large models to enhance the accuracy and efficiency of our risk management system. This will ensure asset risk maintain the current downward trajectory.

Operator

Our next question comes from Yada Li from CICC.

Speaker 4

Then I'll do the translation. First, congrats to the record high results, and thanks for taking my questions. My first question is, in this quarter, I've noticed that the revenue structure experienced some material changes. And I was wondering what are the main reasons to drive this change? And second, what is the company's plan in shareholders returns going forward?

Speaker 4

Thank you so much.

Speaker 5

Okay. I will take the first question and ask Jay to talk about the second. For the first question, first of all, as I mentioned in my previous script, it is important to bear in mind that despite the different factors contributing to the quarter over quarter revenue variance analysis, we should always take a holistic view to look at the total revenue and credit costs together to get the big picture. The big picture is that from the unique economics perspective, our revenue take rate increased from 6.22% to 6.69% quarter over quarter, And the net take rate after offsetting the operational cost increased from 1.31% to 1.58% quarter over quarter. So in terms of the specific revenue variance analysis, basically quarter over quarter variance in total revenue was primarily due to lower credit facilitation service income driven by the reduced pricing, higher early repayments and a shift in GMV towards the Capital Light model.

Speaker 5

While the Tech Empowerment Service line income saw some increase driven by the Capital Light GMV volume migration, Here, the net based accounting recognition is used, where the revenue is net of related credit costs instead of recognizing revenue and credit costs in two separate lines. So related to this, the total credit costs declined at the same time, partially due to the same reason. Additionally, despite the sequential GMV growth of 16.2% quarter over quarter, The installment e commerce platform revenue decreased similarly as a result of the revenue recognition difference due to the volume mix shift between the third party sellers and the company direct sourcing. For the party sellers, only the platform service commissions recognized as revenue rather than the entire transaction amount under the direct sourcing model. The sales volume from the third party seller account for 56% of the total e commerce GMV in the first quarter, up from the 36% in the last quarter.

Speaker 5

So, in conclusion, the revenue structural variance really reflected our ongoing risk centric business transformation and our operational refinement. While the accounting treatment across different business models may cause some top line variances, however, our profit and profit margin continue to improve, really firmly tracking our plan.

Speaker 6

The company has always attached great importance on shareholders' return and is committed to delivering value to shareholders in various needs. Since November 2024, the company has increased its cash dividend payout ratio twice within six months, demonstrating its emphasis on shareholders' return. This not only testifies the company's stable and reliable profitability, but also reflects the management's confidence in achieving stable and sustainable growth in the future. The company will continue to create value for shareholders. We understand investors' expectations regarding shareholders' return and we'll work to align our dividend policy with shareholders' expectation by considering the company's resources, its business development and capital market conditions, while striving to enhance returns appropriately.

Operator

Thank you for all the questions. I see no further questions at this time. I will now hand the conference back to Will for closing remarks.

Speaker 1

Thank you, operator. This conference is now concluded. Thank you for joining today's call. If you have any more questions, please do not hesitate to contact us. Thanks again.

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Key Takeaways

  • Lexin reported Q1 2025 GAAP net profit of RMB430 million, up 18.6% QoQ and 113.4% YoY, the highest in 13 quarters, driven by a two-year transformation centered on data analytics, risk management, and refined operations.
  • Its enhanced risk framework and quantitative analysis models delivered four consecutive quarters of declining asset risk, with day-one delinquency down 11% and 90-day delinquency down 9% QoQ, demonstrating strong asset quality improvement.
  • New product launches like the on-demand credit “Linhua Jie” and ecosystem optimizations across online consumer finance, installment e-commerce, and offline inclusive finance boosted e-commerce GMV by 16.2% and achieved profitability in overseas markets with 19% lower acquisition costs.
  • Margin expansion was driven by a net income margin rise to 13.9% (from 9.9%) and a net profit take rate increase to 1.58% (from 1.31%), supported by a 40% reduction in credit costs and growth in the capital-light model to 28% of GMV.
  • Lexin reaffirmed its full-year 2025 profit guidance and raised its cash dividend payout ratio to 25% in 2025 and 30% in H2 2025, underlining its commitment to shareholder returns.
A.I. generated. May contain errors.
Earnings Conference Call
LexinFintech Q1 2025
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