Lexinfintech Holdings Ltd. · NASDAQ:LX
Lexinfintech — Q3 2024 Earnings Presentation
24 slides from Lexinfintech's earnings presentation, Nov 25, 2024
Slide 1: Investor Presentation Third Quarter 2024 Results
Investor Presentation Third Quarter 2024 Results
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by LexinFintech Holdings Ltd (the “Company”) pursuant to Section 5(d) of the U.S. Securities Act of 1933, as amended (the “Securities Act”) solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell
Slide 3: Company Overview
01 Company Overview
Slide 4: Addressing the Market with Different Focuses
Addressing the Market with Different Focuses Core business supported by new growth opportunities Credit Tech- Installment Facilitation Empowerment E-commerce Service Service Platform Service 04
Slide 5: Commitment to 2C2B2F
Commitment to 2C2B2F Connecting consumers to business and financial institutions 2B&2F 2C (Business and Financial Institutions) (Consumers) • Around 166 funding partners1 • Over 223 million registered users1 • Over 3,004 merchant partners2 • Loan balance of RMB111.2 billion1 1. As of 30 September 20
Slide 6: A Seamless Experience for New-Generation Consumers
A Seamless Experience for New-Generation Consumers Omni-channels and multiple access for our users Consumer credit Maiya E-commerce 06
Slide 7: Empowering the Digitalization of Financial Institutions
Empowering the Digitalization of Financial Institutions Supporting financial institutions in building in-house capabilities and competitiveness Local Fintech deployment upgrade Channel co-building Digital infrastructure Product design Quality assets Risk management Operational efficiency Customer ma
Slide 8: Priorities Unchanged in Execution
Priorities Unchanged in Execution Staying compliant and competitive • Self-examination following the • Enhanced risk identification and same requirements as the 13 modeling platforms Risk • Dynamic credit approval process Compliance • Constant dialogue with regulators Management • Effective matching
Slide 9: Optimize Customer Development Strategy to Deal with External Uncertainty
Optimize Customer Development Strategy to Deal 工作不足 with External 明年计划 Uncertainty Premium Customer Focused • Increase the mix of premium customers & control the access of high-risk customers • Strike a balance between scale and risk • Stable risk performance & high quality of new loan originations
Slide 10: Core Capabilities of Lexin
Core Capabilities of Lexin Customer Service and Risk Management A Operation A • Rich internal data & high-quality B external data • Customer operation by segment • Model upgrade • Customer profile and credit • AB Testing identification • Tailor-made products and services D B Technology and Data Coop
Slide 11: Lexin Smart Business Engine
Lexin Smart Business Engine Credit Application Approving Smart Business Alert Engine Customer Label Transaction Acquisition Summa- rize Acquisition Promoting Process Auto-Matching & Connecting Simulate IDSS Big Data Verify Insight Post Lending Collection & Quality Controlling 11
Slide 12: Lexin Eco-System
Lexin Eco-System Acquiring high-quality customers through multi-scenarios Huge funding pool & diverse consumption Larger scale & higher scenarios Lexin profitability Eco-System Empowering financial institutions Rich data, optimized models and merchants & technology capabilities LePartner 12
Slide 13: Financial Update
02 Financial Update
Slide 14: 3Q24 Highlights
3Q24 Highlights Loan originations Operating revenue Net income 51.0 billion 3.66 billion 310 million down 0.2% QoQ up 0.6% QoQ up 36.7% QoQ 14
Slide 15: Key Financials
Key Financials (RMB 000) 3Q23 2Q24 3Q24 QoQ YoY Credit facilitation service income 2,685,574 2,669,093 2,970,294 11.3% 10.6% Tech-empowerment service income 453,944 534,548 383,592 -28.2% -15.5% Installment e-commerce platform service income 369,417 437,047 308,257 -29.5% -16.6% Total operating reve
Slide 16: Steady User Development with a Huge User Base
Steady User Development with a Huge User Base Registered Users Continued to Grow Cumulative Active Users Maintained Rising Trend (In Millions) (In Millions) QoQ QoQ +1.9% +1.6% 223 33.1 219 32.5 215 32.0 210 31.5 204 30.9 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 16
Slide 17: Slower Loan Growth due to Proactively Tightening Credit Standards
Slower Loan Growth due to Proactively Tightening Credit Standards Loan Originations Growth Slowed down Loan Balance Reached RMB111.2 bn (RMB bn) (RMB bn) QoQ QoQ -0.2% -3.4% 124.0 63.3 61.2 121.5 58.0 120.7 51.1 51.0 115.2 111.2 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 1. Loan originations
Slide 18: Operating Revenue Remained Stable Despite Flat Quarterly Loan Volume
Operating Revenue Remained Stable Despite Flat Quarterly Loan Volume Operating Revenue Remained Stable 81% of Revenue1 from Credit Facilitation Service (RMB mn) QoQ +0.6% 3,641 3,662 3,509 3,509 8% Credit facilitation service income 10% Tech-empowerment service income 3,242 Installment e-commerce pl
Slide 19: Expenses Optimized due to Cost Efficiency Initiatives
Expenses Optimized due to Cost Efficiency Initiatives Operating Expenses Optimized 65% of Expenses1 were Sales Related (RMBm) QoQ -5.0% 711 674 676 13% Sales and marketing expenses 642 Research and development expenses 22% 623 General and administrative expenses 65% 3Q23 4Q23 1Q24 2Q24 3Q24 1. Refer
Slide 20: Strong Profit Growth with Higher Net Margin
Strong Profit Growth with Higher Net Margin Recurring Net Profit1 Saw Strong Growth Recurring Net Margin1 Improved (RMBm) QoQ QoQ +36.7% +2.2ppt 371 10.6% 310 8.5% 236 227 6.7% 202 6.2% 6.2% 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 1. Excluding after-tax impact of investment-related impairm
Slide 21: Appendix
03 Appendix
Slide 22: P&L Statement
P&L Statement For the Three Months Ended September 30, (In thousands, except for share and per share data) 2023 2024 RMB RMB US$ Operating revenue: Credit facilitation service income 2,685,574 2,970,294 423,264 Loan facilitation and servicing fees-credit oriented 1,533,203 1,850,850 263,744 Guarante
Slide 23: Balance Sheet (1)
Balance Sheet (1) As of (In thousands) June 30, 2024 September 30, 2024 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 2,093,712 2,153,594 306,885 Restricted cash 2,079,970 1,431,783 204,027 Restricted term deposit and short-term investments 345,192 266,512 37,978 Short-term financing r
Slide 24: Balance Sheet (2)
Balance Sheet (2) As of (In thousands) June 30, 2024 September 30, 2024 RMB RMB US$ LIABILITIES Current liabilities Accounts payable 42,968 32,215 4,591 Amounts due to related parties 9,167 12,358 1,761 Short-term borrowings 608,093 552,589 78,743 Short-term funding debts 2,345,753 2,972,938 423,640
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