On March 21st, Lexin, a new consumer digital technology service provider, released its unaudited financial performance for the fourth quarter and full year of 2023. In the current macroeconomic and industry environment, Lexin adheres to the dual drive of risk and data, operates prudently, and achieves stable development: revenue in the fourth quarter was 3.5 billion yuan, a year-on-year increase of 15.1%; The annual revenue was 13.1 billion yuan, a year-on-year increase of 32%; The annual profit (Non GAAP EBIT) was 1.8 billion yuan, a year-on-year increase of 41.1%. In 2023, both revenue and profit achieved double-digit growth.
In terms of scale, Lexin's transaction volume in the fourth quarter was 61.2 billion yuan, a year-on-year increase of 9%; The annual transaction volume was 249.5 billion yuan, a year-on-year increase of 21.9%; Manage a loan balance of 124 billion yuan, a year-on-year increase of 24.5%; 210 million users, a year-on-year increase of 10.9%; New credit users and new active users increased by 41% and 51.8% year-on-year, respectively, and the corresponding single person customer acquisition costs decreased by 28% and 33.1% year-on-year.
In terms of funding cooperation, during the quarter, Lexin introduced multiple high-quality financial institution partners, gradually forming a stable funding structure consisting of national joint-stock banks, trillion level urban commercial banks, and urban commercial banks and rural commercial banks spread throughout the country. The cost of funds decreased by 20 BP compared to the third quarter, setting a new historical low.
In terms of risk management, in the fourth quarter, Lexin further improved its risk framework and built a full lifecycle risk control system. The overall risk of the company began to stabilize, and the quality of new assets significantly improved.
In order to improve shareholder returns and demonstrate the company's long-term development confidence, Lexin continues its dividend policy twice a year. This cash dividend will be distributed at an amount of approximately $0.066 per ADS, which is approximately 20% of the net profit for the second half of 2023. It is expected to be distributed on May 24, 2024, and is applicable to shareholders registered on April 18.
The financial report shows that Lexin invested 136 million yuan in research and development in the fourth quarter, continuing to maintain industry leadership. During the quarter, Lexin's self-developed large-scale model application accelerated its implementation and played a role in the field of user profile recognition. Through training, the big model can automatically analyze multiple data sources, identify information such as the user's industry and repayment willingness, construct differentiated and personalized customer profiles and label systems, and achieve data-driven refined management of customer groups. In addition, the anomaly attribution system based on large model assisted development was officially launched in the fourth quarter, achieving real-time monitoring of changes in business indicators, automatic warning and attribution of anomalies, proactive repair or provision of repair solutions, and helping decision-making digitization and intelligence.
Lexin CEO Xiao Wenjie stated that looking ahead to 2024, the company will continue to adhere to the principle of prudent management, prioritize risk, and make every effort to reduce risks and improve profitability; Customer oriented, matrix based customer segmentation management, providing users with more suitable products, strengthening consumer rights protection, and improving user satisfaction; Improve a diverse business ecosystem and create differentiated Lexin ecological advantages.