Lexinfintech Holdings Ltd. · NASDAQ:LX
Lexinfintech — Q3 2023 Earnings Presentation
25 slides from Lexinfintech's earnings presentation, Nov 22, 2023
Slide 1: Investor Presentation Third Quarter 2023 Results
Investor Presentation Third Quarter 2023 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 Focus
Addressing the Market with Different Focus Core business supported by new growth opportunities Credit Facilitation Tech-Empowerment Installment Service Service E-commerce Platform Service 01
Slide 5: Commitment to 2C2B2F
Commitment to 2C2B2F Connecting consumers to business and financial institutions Business and Financial Institutions Consumers • Over 140 funding partners1 • Over 200 million registered users1 • Over 2600 merchant partners2 • Loan balance of Rmb120.7 billion1 1. As of 30 September 2023, or accumulat
Slide 6: A Seamless Experience for New-Generation Consumers
A Seamless Experience for New-Generation Consumers Omni-channels and multipronged access for our users Consumer credit Maiya E-commerce 03
Slide 7: Empowering the Digitalization of Financial Institutions
Empowering the Digitalization of Financial Institutions Supporting financial institutions in the buildup of in-house capability and competitiveness Local Fintech deployment upgrade Channel co-building Digital infrastructure Product design Quality assets Risk management Operational efficiency Custome
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 • Dynamic credit approval process Risk Compliance • Constant dialogue with regulators • Effective matching of individ
Slide 9: Optimize Customer Operation Strategy to Deal with External Uncertainty
Optimize Customer Operation Strategy to Deal with 工作不足External Uncertainty 明年计划 Premium Customer Focused • To increase the proportion of premium customers while controlling the access of high-pricing/high-risk customers • To take the initiative to seek the best balance of scale vs. risk • Stable ove
Slide 10: Lexin Accumulated Core Capabilities
Lexin Accumulated Core Capabilities Customer Service and Risk Management A Operation A • Abundant internal data B • High-quality external data • Customer operation by • Model iteration segmentation • AB Testing • Feature and qualification identification • Tailor-made products and services D B Techno
Slide 11: Lexin Smart Business Engine
Lexin Smart Business Engine Credit Application Approving Smart Business Engine Customer Alert Label Transaction Acquisition Summarize Acquisition Promoting Process Auto-Matching & Connecting Simulate IDSS Big Data Verify Insight Post Lending Collection & Quality Controlling 08
Slide 12: Lexin Eco-System
Lexin Eco-System Acquired high-quality customers through multi-scenarios Enlarged funding pool and consumption scenarios Increased scale and Lexin profitability Eco-System Empowered financial institutions Enriched data, optimized models and merchants & technology capabilities LePartner 09
Slide 13: Financial Update
02 Financial Update
Slide 14: 3Q23 Highlights
3Q23 Highlights Loan originations Total operating Net income created revenue generated 63.3 billion 3.5 billion 370.6 million Up 12.7% YoY Up 30.4% YoY Up 34.4% YoY 10
Slide 15: Key Financials
Key Financials (Rmb000) 3Q22 2Q23 3Q23 QoQ YoY Credit facilitation service income 1,665,652 2,137,718 2,685,574 25.6% 61.2% Tech-empowerment service income 499,699 391,695 453,944 15.9% -9.2% Installment e-commerce platform service income 524,986 526,399 369,417 -29.8% -29.6% Total operating revenue
Slide 16: Steady User Increase in Amount
Steady User Increase in Amount Number (In Millions) of Registered Users Number (In Millions) of Active Users QoQ QoQ +2.7% -2.0% 204 199 194 189 5.6 5.3 5.0 5.0 4.9 184 3Q22 4Q22 1Q23 2Q23 3Q23 3Q22 4Q22 1Q23 2Q23 3Q23 12
Slide 17: Steady Recovery Upwards to New Scale
Steady Recovery Upwards to New Scale Loan (RMB bn) Originations Outstanding (RMB bn) Loan Balance QoQ QoQ -1.0% +5.8% 63.9 63.3 60.9 120.7 114.1 56.2 56.1 107.0 99.6 94.6 3Q22 4Q22 1Q23 2Q23 3Q23 3Q22 4Q22 1Q23 2Q23 3Q23 1. Loan originations represents the total amount of loans originated during eac
Slide 18: Stable V-shaped Trend Back to Normality
Stable V-shaped Trend Back to Normality Operating Revenue Breakdown of Operating Revenue (RMBm) QoQ +14.8% 11% 3,509 Installment e-commerce platform service income 13% 3,050 2,983 3,056 2,690 Tech-empowerment service income Cre dit facilitation service income 77% 3Q22 4Q22 1Q23 2Q23 3Q23 1. Breakdow
Slide 19: Optimized Allocation of Resources
Optimized Allocation of Resources Operating Expenses Breakdown of Operating Expenses (RMBm) QoQ -7.2% 14% 669 671 667 Sales & Marketing 656 20% Research & Development 66% 623 General & Administrative 3Q22 4Q22 1Q23 2Q23 3Q23 1. Breakdown of operating expenses for 3Q23 15
Slide 20: Profitability Grows as Turnaround Recovery Progresses
Profitability Grows as Turnaround Recovery Progresses Net (RMBm) Profit Net Margin QoQ QoQ +4.2% -1ppt 371 356 327 301 11.6% 276 11.0% 10.6% 10.2% 9.9% 3Q22 4Q22 1Q23 2Q23 3Q23 3Q22 4Q22 1Q23 2Q23 3Q23 16
Slide 21: Short-Term Impact by External Fluctuation
Short-Term Impact by External Fluctuation 30+ Delinquency Ratio 90+ Delinquency Ratio QoQ QoQ +26bps +8bps 2.66% 2.59% 2.67% 2.53% 2.53% 4.87% 4.61% 4.62% 4.57% 4.61% 3Q22 4Q22 1Q23 2Q23 3Q23 3Q22 4Q22 1Q23 2Q23 3Q23 17
Slide 22: Appendix
03 Appendix
Slide 23: P&L Statement
P&L Statement For the Three Months Ended September 30, (In thousands, except for share and per share data) 2022 2023 RMB RMB US$ Operating revenue: Credit facilitation service income 1,665,652 2,685,574 368,089 Loan facilitation and servicing fees-credit oriented 714,102 1,533,203 210,143 Guarantee
Slide 24: Balance Sheet (1)
Balance Sheet (1) As of (In thousands) December 31, 2022 September 30, 2023 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 1,494,150 2,527,065 346,363 Restricted cash 1,267,512 1,502,659 205,957 Restricted term deposit and short-term investments 1,331,858 804,439 110,258 Short-term fina
Slide 25: Balance Sheet (2)
Balance Sheet (2) As of (In thousands) December 31, 2022 September 30, 2023 RMB RMB US$ LIABILITIES Current liabilities Accounts payable 25,970 14,533 1,992 Amounts due to related parties 4,669 2,521 346 Short-term borrowings 1,168,046 814,923 111,694 Short-term funding debts 4,385,253 3,726,246 510
LexinFintech Holdings — Q3 2023 Earnings Presentation on 6ix