Beijing Business Daily News (Reporter Yue Pinyu and Dong Hanxuan) On August 22, Lufax Holdings released its financial report for the second quarter of 2024 and its interim performance report for 2024. As of June 30, 2024, the total revenue of Lufax Holdings is 12.94 billion yuan (RMB, the same below); Net loss of 1.56 billion yuan, while net profit of 1.736 billion yuan was achieved in the same period of 2023.
As of June 30, 2024, the company's loan balance was 235.2 billion yuan, with new loans of 45.2 billion yuan added in the second quarter. The balance of the company's consumer finance loans is 42 billion yuan, an increase of 27.9% compared to June 30, 2023. The total scale of the company's newly added loans decreased from 110.5 billion yuan in the first half of 2023 to 93.3 billion yuan in the first half of 2024.
The company achieved a revenue of 5.976 billion yuan and a net loss of 730 million yuan in the second quarter. Zhu Peiqing, CFO of Lufax Holdings, stated that the company has just completed the transition to a 100% guarantee model, and the new business model requires the provision of risk reserves. This accounting treatment will have an impact on short-term profitability. But it is expected that the new loans under the 100% guarantee model can achieve full cycle profitability, and as the loan portfolio matures, it is expected to improve long-term financial performance.
According to financial report data, as of June 30th, the overall 30 day delinquency rate of small and micro financing services controlled by Lufax has decreased by 1.2% compared to the end of the first quarter, the non-performing loan ratio of consumer finance business has decreased by 0.2%, and the quality of loan assets has shown signs of improvement. The forward-looking indicator C-M3, which reflects the trend of asset quality, has improved from 1.0 at the end of the first quarter to 0.9. Thanks to the improvement in asset quality, the credit impairment losses of Lufax Holdings in the second quarter decreased by 14.6% year-on-year to 2.856 billion yuan.
In early April, Lufax Holdings completed the acquisition of Ping An One Account Bank (Hong Kong) Limited. Ping An One Account Bank (Hong Kong) Limited achieved steady development in the first half of the year. As of the end of the second quarter, the total loan balance was 2.4 billion yuan, a year-on-year increase of 45%.