On November 17th, Qifu Technology (formerly known as 360 Digital Science and Technology, Nasdaq: QFIN; 03660. HK), a financial technology company listed on both US and Hong Kong stocks, released its financial performance announcement for the third quarter of 2023.
In the third quarter, Qifu Technology achieved a net income of 4.281 billion yuan, a year-on-year increase of 3.3%; The net profit attributable to ordinary shareholders of the company was 1.142 billion yuan, a year-on-year increase of 15.03%.
In the first three quarters, Qifu Technology achieved a net income of 11.795 billion yuan, a year-on-year decrease of 6.74%; The net profit attributable to ordinary shareholders of the company was 3.1736 billion yuan, a year-on-year increase of 0.68%.
The total matching and initiated loan scale exceeded 123.1 billion yuan, a year-on-year increase of 11.3%
In terms of operational data, in the third quarter, financial institution partners initiated 18.543 million loans through the Qifu Technology platform; The total scale of matchmaking and initiated loans reached 123.148 billion yuan, a year-on-year increase of 11.3%. Among these loans initiated by financial institutions, the loan scale matched and initiated under the light capital model, intelligent credit engine (ICE), and other technological solutions was 69.579 billion yuan, accounting for 56.5% of the total amount of initiated loans, an increase of 7.7% compared to 64.583 billion yuan in the same period of 2022. As of September 30, the total outstanding balance of loans was 189.1 billion yuan, an increase of 18.2% compared to 160020 billion yuan as of September 30, 2022.
As of September 30th, the Qifu Technology platform has connected a total of 155 financial institution partners and 227.9 million consumers with potential credit needs, an increase of 12% from 203.5 million in the previous year; The cumulative number of users with approved credit lines is 49.2 million, an increase of 14.4% from 43 million as of September 30, 2022; The cumulative number of borrowers who have successfully withdrawn funds (including repeat borrowers) is 29.4 million, an increase of 11.9% from 26.3 million as of September 30, 2022.
In addition, as of September 30th, the over 90 day overdue rate of loans initiated by financial institutions on the entire platform of Qifu Technology was 1.82%; In the third quarter, the repayment rate of loans initiated by financial institutions on the entire platform of Qifu Technology was 91.5%.
In terms of performance outlook, Qifu Technology expects the total loan amount in the fourth quarter to be between 116 billion yuan and 126 billion yuan, and the total loan amount for the entire year is expected to be between 473 billion yuan and 483 billion yuan, a year-on-year increase of 15% to 17%.
Credit driven service revenue exceeded 3 billion yuan in the third quarter, and platform service revenue exceeded 1.2 billion yuan
From the perspective of income structure, Qifu Technology's revenue mainly comes from credit driven service revenue and platform service revenue.
According to the financial report, Qifu Technology's credit driven service revenue in the third quarter was 3.071 billion yuan, compared to 2.9411 billion yuan in the same period of 2022 and 2.7887 billion yuan in the previous quarter.
Among them, the loan matching and service fees under the heavy capital model were 479.2 million yuan, compared to 582.9 million yuan in the same period of 2022 and 395.5 million yuan in the previous quarter. The year-on-year decrease is mainly due to a shorter loan term compared to the same period in 2022, while the month on month increase is mainly due to an increase in the scale of heavy capital loans and a longer loan validity period compared to the previous quarter.
The financing income was 1.3699 billion yuan, compared to 877.1 million yuan in the same period of 2022 and 1.1887 billion yuan in the previous quarter. The year-on-year and month on month increase is mainly due to an increase in the average balance of loans on the balance sheet.
The revenue from releasing guarantee liabilities was 1.1657 billion yuan, compared to 1.4476 billion yuan in the same period of 2022 and 1.1586 billion yuan in the previous quarter. The year-on-year and month on month changes reflect the changes in the average outstanding balance of off balance sheet heavy capital loans.
Other service fees were 56.1 million yuan, compared to 33.6 million yuan in the same period of 2022 and 45.9 million yuan in the previous quarter. The year-on-year and month on month increase reflects the increase in late fees under the heavy capital model.
In the third quarter, Qifu Technology's platform service revenue was 1.2101 billion yuan, compared to 1.203 billion yuan in the same period of 2022 and 1.1256 billion yuan in the previous quarter.
Among them, the loan matching and service fees under the light capital model were 863.9 million yuan, compared to 1.0402 billion yuan in the same period of 2022 and 887.8 million yuan in the previous quarter. The year-on-year decrease is mainly due to a decrease in the volume of light capital loans and a shorter loan validity period. The month on month decrease is mainly due to a decrease in the amount of light capital loans.
The referral service fee was 234.2 million yuan, compared to 85.4 million yuan in the same period of 2022 and 160.9 million yuan in the previous quarter. The year-on-year and month on month increase is mainly due to the increase in loan matching scale through ICE.
Other service fees were 112 million yuan, compared to 77.4 million yuan in the same period of 2022 and 76.9 million yuan in the previous quarter. The year-on-year and month on month increase is mainly due to an increase in late fees and other service fees.
According to the official website, Qifu Technology (formerly known as 360 Digital Science) was established in July 2016 and incubated with 360 Group, the largest internet security company in China. On December 14, 2018, Qifu Technology successfully listed on NASDAQ in the United States; On November 29, 2022, Qifu Technology was officially listed on the Hong Kong Stock Exchange. In February of this year, the 360 Digital Science brand was renamed Qifu Technology.