LexinFintech (LX) Q4 2024 earnings summary

Executive summary

• Achieved net income of RMB 363 million in Q4 2024, up 17.2% quarter-over-quarter and over 100% year-over-year, with four consecutive quarters of improved profitability.

• Loan origination reached RMB 52 billion in Q4 2024, up 2% sequentially; outstanding loan balance at RMB 110 billion.

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

• Enhanced technology investment, especially in AI and proprietary large models, to drive operational efficiency and customer experience.

• Board approved a dividend of US$0.11 per ADS for H2 2024; payout ratio to increase to 25% of net income from 2025.

Financial highlights

• Q4 2024 operating revenue was RMB 3,659 million, up 4.3% year-over-year; gross profit reached RMB 1,274 million.

• Adjusted net income for Q4 was RMB 391 million, up 37.7% year-over-year.

• Tech-empowerment service income surged 56.9% quarter-over-quarter and 41% year-over-year to RMB 602 million.

• Net income take rate rose to 1.31% in Q4 2024.

• Net profit margin increased from 8.5% to 9.9% quarter-over-quarter.

Outlook and guidance

• 2025 total loan origination expected to see flat to single-digit year-over-year growth, with significant net income increase driven by margin expansion and asset quality improvement.

• Q1 2025 GMV expected to be flat with Q4 due to seasonality.

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

• Continued focus on risk management, asset structure optimization, and differentiated credit offerings.