Lufax Holding Ltd (“Lufax” or the “Company”) (NYSE: LU), a
leading technology-empowered personal financial services platform
in China, today announced its unaudited financial results for the
first quarter ended March 31, 2022.
First Quarter 2022 Financial Highlights
- Total income increased by 13.5% to RMB17,316 million (US$2,732
million) in the first quarter of 2022 from RMB15,251 million in the
same period of 2021.
- Net profit increased by 6.5% to RMB5,290 million (US$834
million) in the first quarter of 2022 from RMB4,969 million in the
same period of 2021.
(In millions except percentages,
unaudited)
Three Months Ended March
31,
2021
2022
YoY
RMB
RMB
USD
Total income
15,251
17,316
2,732
13.5%
Total expenses
(8,530)
(10,163)
(1,603)
19.1%
Total expenses excluding credit and asset
impairment losses
(7,477)
(7,339)
(1,158)
(1.8%)
Credit and asset impairment losses
(1,053)
(2,824)
(445)
168.2%
Net profit1
4,969
5,290
834
6.5%
First Quarter 2022 Operational Highlights
Retail credit facilitation
business:
- Outstanding balance of loans facilitated increased by 16.1% to
RMB676.3 billion as of March 31, 2022 from RMB582.6 billion as of
March 31, 2021.
- Cumulative number of borrowers increased by 17.9% to
approximately 17.8 million as of March 31, 2022 from approximately
15.1 million as of March 31, 2021.
- New loans facilitated decreased by 4.7% to RMB164.3 billion in
the first quarter of 2022 from RMB172.4 billion in the same period
of 2021.
- During the first quarter of 2022, excluding the consumer
finance subsidiary, 83.5% of new loans facilitated were disbursed
to small business owners, up from 75.7% in the same period of
2021.
- During the first quarter of 2022, excluding the consumer
finance subsidiary, the Company bore risk on 20.4% of its new loans
facilitated, up from 12.5% in the same period of 2021.
- As of March 31, 2022, including the consumer finance
subsidiary, the Company bore risk on 19.4% of its outstanding
balance, up from 8.7% as of March 31, 2021.
- For the first quarter of 2022, the Company’s retail credit
facilitation revenue take rate2 based on loan balance was 9.7%, as
compared to 10.0% for the first quarter of 2021.
- C-M3 flow rate3 for the total loans the Company had facilitated
was 0.6% in the first quarter of 2022, as compared to 0.5% in the
fourth quarter of 2021. Flow rates for the general unsecured loans
and secured loans the Company had facilitated were 0.7% and 0.2%,
respectively, in the first quarter of 2022, as compared to 0.6% and
0.2%, respectively, in the fourth quarter of 2021.
- Days past due (“DPD”) 30+ delinquency rate4 for the total loans
the Company had facilitated was 2.6% as of March 31, 2022, as
compared to 2.2% as of December 31, 2021. DPD 30+ delinquency rate
for general unsecured loans was 3.0% as of March 31, 2022, as
compared to 2.6% as of December 31, 2021. DPD 30+ delinquency rate
for secured loans was 1.0% as of March 31, 2022, as compared to
0.8% as of December 31, 2021.
- DPD 90+ delinquency rate5 for the total loans facilitated was
1.4% as of March 31, 2022, as compared to 1.2% as of December 31,
2021. DPD 90+ delinquency rate for general unsecured loans was 1.6%
as of March 31, 2022, as compared to 1.5% as of December 31, 2021.
DPD 90+ delinquency rate for secured loans was 0.5% as of March 31,
2022, as compared to 0.4% as of December 31, 2021.
Wealth management business:
- Total number of registered users grew to 52.0 million as of
March 31, 2022 from 46.5 million as of March 31, 2021.
- Total number of active investors grew to 15.2 million as of
March 31, 2022 from 14.8 million as of March 31, 2021.
- Total client assets grew by 2.7% to RMB432.6 billion as of
March 31, 2022 from RMB421.1 billion as of March 31, 2021.
- Client assets in the Company’s current products increased by
3.7% to RMB432.6 billion as of March 31, 2022 from RMB417.1 billion
as of March 31, 2021.
- As of March 31, 2022, no client assets remained in legacy
products. Legacy products had accounted for 0.9% of total client
assets as of March 31, 2021.
- The 12-month investor retention rate was 94.4% as of March 31,
2022, as compared to 96.6% as of March 31, 2021.
- Contribution to total client assets from customers with
investments of more than RMB300,000 on the Company’s platform
increased to 81.3% as of March 31, 2022 from 76.3% as of March 31,
2021.
- During the first quarter of 2022, the annualized take rate6 for
current products and services on the Company’s wealth management
platform was 53.9 bps, down from 64.0 bps during the fourth quarter
of 2021.
Mr. Ji Guangheng, Chairman of Lufax, commented, “We overcame
external challenges and delivered another quarter of solid
financial and operational performance by leveraging our core
competitive advantages in regulatory compliance, market potential,
business models, and capital reserves. As part of our plan to
reward shareholders, we also paid out our inaugural dividend during
April. More importantly, we are actively implementing a series of
operational initiatives to preempt any potential capital market
dislocations. Looking ahead, we will remain fully in sync with
China’s national policy directives, offer inclusive financing
services, and continue to demonstrate our resolve, resiliency, and
commitment to support small- and micro-businesses and the real
economy at large.”
Mr. Gregory Gibb, Co-Chief Executive Officer of Lufax,
commented, “Our first quarter results exceeded our own guidance
both on the top and bottom lines, as we further augmented our
competitive strengths on the back of our stable operations. While
there remains uncertainty ahead given the ongoing pandemic, we have
implemented a number of proactive measures, including targeting
higher-quality customers, providing more customized products, and
improving our risk management efficiency, to enhance our business.
We are confident that our strong balance sheet, abundant cash
reserves, and well-funded credit insurance and funding partners
have equipped us with significant strength and flexibility to
weather the COVID resurgence and related economic slowdown.”
Mr. James Zheng, Chief Financial Officer of Lufax, commented,
“During the first quarter, our total income increased by 13.5% year
over year to RMB17.3 billion and our net profit grew by 6.5% to
RMB5.3 billion, mostly driven by our stable unit economics, deeper
market penetration, and sophisticated risk-sharing business model.
As of March 31, 2022, we had approximately RMB52.1 billion in
liquid assets7 maturing in 90 days or less. While we have great
confidence in our own ability to thrive in a challenging external
environment, we are also cognizant of the severe downward pressure
that the simultaneous rolling lockdowns across multiple cities have
put on the entire economy and the financial services industry.
Because it is next to impossible to predict the duration and
severity of the COVID-induced economic slowdown, we have adopted a
more conservative outlook towards our own growth prospects and
revised our guidance accordingly.”
First Quarter 2022 Financial Results
TOTAL INCOME
Total income increased by 13.5% to RMB17,316 million (US$2,732
million) in the first quarter of 2022 from RMB15,251 million in the
same period of 2021. The Company’s revenue mix changed with the
evolution of its business model, as it gradually bore more credit
risk and increased funding from consolidated trust plans that
provided lower funding costs.
Three Months Ended March
31,
(In millions except percentages,
unaudited)
2021
2022
YoY
RMB
% of income
RMB
% of income
Technology platform-based income
10,290
67.5%
9,292
53.7%
(9.7%)
Retail credit facilitation service
fees
9,665
63.4%
8,700
50.2%
(10.0%)
Wealth management transaction and service
fees
625
4.1%
592
3.4%
(5.3%)
Net interest income
2,911
19.1%
4,984
28.8%
71.2%
Guarantee income
551
3.6%
1,902
11.0%
245.2%
Other income
1,039
6.8%
704
4.1%
(32.2%)
Investment income
490
3.2%
435
2.5%
(11.2%)
Share of net profits of investments
accounted for using the equity method
(30)
(0.2%)
(0)
(0)
(100.0%)
Total income
15,251
100%
17,316
100%
13.5%
- Technology platform-based income decreased by 9.7% to
RMB9,292 million (US$1,466 million) in the first quarter of 2022
from RMB10,290 million in the same period of 2021 due to a decrease
in retail credit facilitation service fees, and wealth management
transaction and service fees.
- Retail credit facilitation service fees decreased by 10.0% to
RMB8,700 million (US$1,372 million) in the first quarter of 2022
from RMB9,665 million in the same period of 2021, mainly due to
changes in the Company’s business model that resulted in more
income being recognized in net interest income and guarantee
income, and to a lesser extent, a lower take rate as a result of
being more selective in borrowers.
- Wealth management transaction and service fees decreased by
5.3% to RMB592 million (US$93 million) in the first quarter of 2022
from RMB625 million in the same period of 2021. The decrease was
mainly driven by the run-off of legacy products, partially offset
by the increase in fees generated from the Company’s current
products and services.
- Net interest income increased by 71.2% to RMB4,984
million (US$786 million) in the first quarter of 2022 from RMB2,911
million in the same period of 2021, mainly as a result of 1) the
Company’s increased usage of trust funding channels that were
consolidated by the Company (as of March 31, 2022, the Company’s
on-balance sheet loans accounted for 34.5% of its total loan
balance under management, as compared to 24.7% as of March 31,
2021), and 2) increase in the consumer finance loans.
- Guarantee income increased by 245% to RMB1,902 million
(US$300 million) in the first quarter of 2022 from RMB551 million
in the same period of 2021, primarily due to the increase in the
loans for which the Company bore credit risk.
- Other income decreased to RMB704 million (US$111
million) in the first quarter of 2022 from RMB1,039 million in the
same period of 2021, mainly due to the change of service scope and
fee structure that the Company provided and charged to its
financial institution partners.
- Investment income decreased by 11.2% to RMB435 million
(US$69 million) in the first quarter of 2022 from RMB490 million in
the same period of 2021, mainly due to the decrease of investment
asset.
TOTAL EXPENSES
Total expenses increased by 19.1% to RMB10,163 million (US$1,603
million) in the first quarter of 2022 from RMB8,530 million in the
same period of 2021. This increase was mainly driven by credit
impairment losses, since credit impairment losses increased by 168%
to RMB2,824 million (US$445 million) in the first quarter of 2022
from RMB1,053 million in the same period of 2021. Total expenses
excluding credit impairment losses, finance costs and other
(gains)/losses increased by 2.7% to RMB7,247 million (US$1,143
million) in the first quarter of 2022 from RMB7,055 million in the
same period of 2021.
Three Months Ended March
31,
(In millions except percentages,
unaudited)
2021
2022
YoY
RMB
% of income
RMB
% of income
Sales and marketing expenses
4,233
27.8%
4,484
25.9%
5.9%
General and administrative expenses
854
5.6%
726
4.2%
(15.0%)
Operation and servicing expenses
1,521
10.0%
1,590
9.2%
4.5%
Technology and analytics expenses
447
2.9%
448
2.6%
0.2%
Credit impairment losses
1,053
6.9%
2,824
16.3%
168.2%
Finance costs
284
1.9%
211
1.2%
(25.7%)
Other (gains)/losses - net
138
0.9%
(118)
(0.7%)
(185.5%)
Total expenses
8,530
55.9%
10,163
58.7%
19.1%
- Sales and marketing expenses increased by 5.9% to
RMB4,484 million (US$707 million) in the first quarter of 2022 from
RMB4,233 million in the same period of 2021.
- Borrower acquisition expenses decreased by 7.3% to RMB2,435
million (US$384 million) in the first quarter of 2022 from RMB2,627
million in the same period of 2021. The decrease was mainly due to
increased sales productivity and continual optimization of
commissions, partly offset by the increased investment in direct
sales channel.
- Investor acquisition and retention expenses decreased by 11.1%
to RMB104 million (US$16 million) in the first quarter of 2022 from
RMB117 million in the same period of 2021, mostly due to the
improvement in the Company’s investor acquisition efficiency.
- General sales and marketing expenses increased by 30.5% to
RMB1,945 million (US$307 million) in the first quarter of 2022 from
RMB1,490 million in the same period of 2021. This increase was
primarily due to the increase in sales cost related to platform
services8 and the increase in the staff costs for sales and
marketing personnel.
- General and administrative expenses decreased by 15.0%
to RMB726 million (US$115 million) in the first quarter of 2022
from RMB854 million in the same period of 2021 as a result of the
Company’s expense control measures.
- Operation and servicing expenses increased by 4.5% to
RMB1,590 million (US$251 million) in the first quarter of 2022 from
RMB1,521 million in the same period of 2021, primarily due to the
increase of trust plan management expenses, which resulted from the
increase in consolidated trust plans.
- Technology and analytics expenses increased by 0.2% to
RMB448 million (US$71 million) in the first quarter of 2022 from
RMB447 million in the same period of 2021, mainly due to the
Company’s ongoing investments in technology research and
development.
- Credit impairment losses increased by 168.2% to RMB2,824
million (US$445 million) in the first quarter of 2022 from RMB1,053
million in the same period of 2021, mainly driven by 1) the
increase of provision and indemnity loss driven by increased risk
exposure, and 2) the change in credit performance due to impact of
the COVID-19 outbreak.
- Finance costs decreased by 25.7% to RMB211 million
(US$33 million) in the first quarter of 2022 from RMB284 million in
the same period of 2021, mainly due to the increase in interest
income resulting from the increase in deposits.
- Other gains were RMB118 million (US$19 million) in the
first quarter of 2022 compared to other losses of RMB138 million in
the same period of 2021, mainly due to the foreign exchange gain in
the first quarter of 2022.
NET PROFIT
Net profit increased by 6.5% to RMB5,290 million (US$834
million) in the first quarter of 2022 from RMB4,969 million in the
same period of 2021, driven by the aforementioned factors, If
non-cash foreign exchange gains and losses were excluded from the
calculation of net profit, then the year on year increase in net
profit would have been 2.1% instead.
EARNINGS PER ADS
Basic and diluted earnings per American Depositary Share (“ADS”)
were RMB2.31 (US$0.36) and RMB2.14 (US$0.34), respectively, in the
first quarter of 2022.
BALANCE SHEET
The Company had RMB40,556 million (US$6,398 million) in cash at
bank as of March 31, 2022, as compared to RMB34,743 million as of
December 31, 2021.
Recent Developments
US$1 Billion Share Repurchase Program
During 2021, the Company’s board of directors authorized share
repurchase programs under which the Company could repurchase up to
an aggregate of US$1 billion of its ADSs during the specific
period. As of March 31, 2022, the Company had repurchased
approximately 110 million ADSs for approximately US$877 million
under these share repurchase programs.
US$500 Million Share Repurchase Program
On March 7, 2022, the Company’s board of directors authorized an
additional share repurchase program, under which the Company may
repurchase up to an aggregate of US$500 million worth of its ADSs
over the following twelve months.
Early retirement of CFO
Mr. James Zheng, the Company’s CFO, will be taking early
retirement from the end of this June after many years career with
the Company. Over his years of service James has contributed a
great deal to the success of Lufax. The Company would like to thank
James for his service. The company has started the search for a new
CFO. During the interim period, Mr. David Choy, Chief Financial
Officer of Puhui, will assume the finance function of the
company.
Business Outlook
During the first quarter of 2022, the overall economics in China
was impacted by the regional lockdowns. Under the current zero
COVID policy, the Company believes that rolling lockdowns,
simultaneously affecting multiple cities, will likely remain rooted
in the landscape throughout most of 2022, thus exerting severe
negative influences on the entire economy and the credit business.
As such, the Company would like to provide its revised guidance to
account for the near-term macro headwinds.
For the first half of 2022, the Company expects its new loans
facilitated to decrease between 7% to 10% year over year to the
range of RMB294 billion to RMB301 billion, client assets to grow by
1% to 3% year over year to the range of RMB425 billion to RMB434
billion, total income to grow by 8% to 10% year over year to the
range of RMB32.5 billion to RMB33.1 billion, and net profit to
decrease between 11% to 13% year over year to the range of RMB8.5
billion to RMB8.6 billion. If non-cash foreign exchange losses were
excluded from the calculation of net profit, then the Company's
expectation would be for a decrease in net profit for the first
half of 2022 of between 3% and 4%.
These forecasts reflect the Company’s current and preliminary
views on the market and operational conditions, which are subject
to change.
Conference Call Information
The Company’s management will hold an earnings conference call
at 9:00 P.M. U.S. Eastern Time on Wednesday, May 25, 2022 (9:00
A.M. Beijing Time on Thursday, May 26, 2022) to discuss the
financial results. For participants who wish to join the call,
please complete online registration using the link provided below
in advance of the conference call. Upon registering, each
participant will receive a set of participant dial-in numbers, the
Direct Event passcode, and a unique access PIN, which can be used
to join the conference call.
Registration Link: https://ige.netroadshow.com/registration/q4inc/11007/lufax-holding-ltd-first-quarter-2022-earnings-conference-call/
A replay of the conference call will be accessible through June
1, 2022 (dial-in numbers: +1 (866) 813-9403 or +1 (226) 828-7578;
replay access code: 992269). A live and archived webcast of the
conference call will also be available at the Company’s investor
relations website at https://ir.lufaxholding.com.
About Lufax
Lufax Holding Ltd is a leading technology-empowered personal
financial services platform in China. Lufax Holding Ltd primarily
utilizes its customer-centric product offerings and offline
to-online channels to provide retail credit facilitation services
to small business owners and salaried workers in China as well as
tailor-made wealth management solutions to China’s rapidly growing
middle class. The Company has implemented a unique, capital-light,
hub-and spoke business model combining purpose-built technology
applications, extensive data, and financial services expertise to
effectively facilitate the right products to the right
customers.
Exchange Rate Information
This announcement contains translations of certain RMB amounts
into U.S. dollars at a specified rate solely for the convenience of
the reader. Unless otherwise noted, all translations from RMB to
U.S. dollars are made at a rate of RMB6.3393 to US$1.00, the rate
in effect as of March 31, 2022, as certified for customs purposes
by the Federal Reserve Bank of New York.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the
United States Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by terminology
such as "will," "expects," "anticipates," "future," "intends,"
"plans," "believes," "estimates" and similar statements. Statements
that are not historical facts, including statements about Lufax’s
beliefs and expectations, are forward-looking statements. Lufax has
based these forward-looking statements largely on its current
expectations and projections about future events and financial
trends, which involve known or unknown risks, uncertainties and
other factors, all of which are difficult to predict and many of
which are beyond the Company’s control. These forward-looking
statements include, but are not limited to, statements about
Lufax's goals and strategies; Lufax's future business development,
financial condition and results of operations; expected changes in
Lufax's income, expenses or expenditures; expected growth of the
retail credit facility and wealth management markets; Lufax's
expectations regarding demand for, and market acceptance of, its
services; Lufax's expectations regarding its relationship with
borrowers, platform investors, funding sources, product providers
and other business partners; general economic and business
conditions; and government policies and regulations relating to the
industry Lufax operates in. Forward-looking statements involve
inherent risks and uncertainties. Further information regarding
these and other risks is included in Lufax’s filings with the U.S.
Securities and Exchange Commission. All information provided in
this press release is as of the date of this press release, and
Lufax does not undertake any obligation to update any
forward-looking statement, except as required under applicable
law.
LUFAX HOLDING LTD
UNAUDITED INTERIM CONDENSED
CONSOLIDATED INCOME STATEMENTS
(All amounts in thousands,
except share data, or otherwise noted)
Three Months Ended March
31,
2021
2022
RMB
RMB
USD
Technology platform-based income
10,290,119
9,292,015
1,465,779
Retail credit facilitation service
fees
9,665,145
8,699,844
1,372,367
Wealth management transaction and service
fees
624,974
592,171
93,413
Net interest income
2,910,924
4,983,561
786,137
Guarantee income
551,375
1,902,334
300,086
Other income
1,038,556
703,575
110,986
Investment income
489,706
434,988
68,618
Share of net profits of investments
accounted for using the equity method
(29,883
)
(377
)
(59
)
Total income
15,250,797
17,316,096
2,731,547
Sales and marketing expenses
(4,233,269
)
(4,483,896
)
(707,317
)
General and administrative expenses
(853,705
)
(725,541
)
(114,451
)
Operation and servicing expenses
(1,521,187
)
(1,589,827
)
(250,789
)
Technology and analytics expenses
(446,593
)
(447,883
)
(70,652
)
Credit impairment losses
(1,053,250
)
(2,823,516
)
(445,399
)
Asset impairment losses
-
-
-
Finance costs
(284,092
)
(210,792
)
(33,252
)
Other gains/(losses) - net
(137,966
)
118,027
18,618
Total expenses
(8,530,062
)
(10,163,428
)
(1,603,241
)
Profit before income tax
expenses
6,720,735
7,152,668
1,128,306
Income tax expenses
(1,752,106
)
(1,862,787
)
(293,847
)
Net profit for the period
4,968,629
5,289,881
834,458
Net profit/(loss) attributable
to:
Owners of the Group
4,995,358
5,278,942
832,733
Non-controlling interests
(26,729
)
10,939
1,726
Net profit for the period
4,968,629
5,289,881
834,458
Earnings per share
-Basic earnings per share
4.18
4.62
0.73
-Diluted earnings per share
3.91
4.28
0.68
-Basic earnings per ADS
2.09
2.31
0.36
-Diluted earnings per ADS
1.96
2.14
0.34
LUFAX HOLDING LTD
UNAUDITED INTERIM CONDENSED
CONSOLIDATED BALANCE SHEETS
(All amounts in thousands,
except share data, or otherwise noted)
As of December 31,
As of March 31,
2021
2022
RMB
RMB
USD
Assets
Cash at bank
34,743,188
40,556,230
6,397,588
Restricted cash
30,453,539
32,830,158
5,178,830
Financial assets at fair value through
profit or loss
31,023,211
22,411,763
3,535,369
Financial assets at amortized cost
3,784,613
4,135,985
652,436
Financial assets purchased under reverse
repurchase agreements
5,527,177
7,581,474
1,195,948
Accounts and other receivables and
contract assets
22,344,773
20,538,961
3,239,941
Loans to customers
214,972,110
232,924,575
36,742,949
Deferred tax assets
4,873,370
4,045,011
638,085
Property and equipment
380,081
357,891
56,456
Investments accounted for using the equity
method
459,496
459,120
72,424
Intangible assets
899,406
897,482
141,574
Right-of-use assets
804,990
746,276
117,722
Goodwill
8,918,108
8,918,108
1,406,797
Other assets
1,249,424
1,580,305
249,287
Total assets
360,433,486
377,983,339
59,625,406
Liabilities
Payable to platform users
2,747,891
2,374,849
374,623
Borrowings
25,927,417
31,663,352
4,994,771
Current income tax liabilities
8,222,684
7,378,003
1,163,851
Accounts and other payables and contract
liabilities
8,814,255
7,415,382
1,169,748
Payable to investors of consolidated
structured entities
195,446,140
203,756,412
32,141,784
Financial guarantee liabilities
2,697,109
3,340,716
526,985
Deferred tax liabilities
833,694
963,292
151,956
Lease liabilities
794,544
742,462
117,121
Convertible promissory note payable
10,669,498
10,808,448
1,704,991
Optionally convertible promissory
notes
7,405,103
7,493,776
1,182,114
Other liabilities
2,315,948
2,181,685
344,152
Total liabilities
265,874,283
278,118,377
43,872,096
Equity
Share capital
75
75
12
Share premium
33,365,786
33,409,962
5,270,292
Treasury shares
(5,560,104)
(5,642,769)
(890,125)
Other reserves
9,304,995
9,344,200
1,474,011
Retained earnings
55,942,943
61,221,885
9,657,515
Total equity attributable to owners of
the Company
93,053,695
98,333,353
15,511,705
Non-controlling interests
1,505,508
1,531,609
241,605
Total equity
94,559,203
99,864,962
15,753,311
Total liabilities and equity
360,433,486
377,983,339
59,625,406
LUFAX HOLDING LTD
UNAUDITED INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(All amounts in thousands,
except share data, or otherwise noted)
Three Months Ended March
31,
2021
2022
RMB
RMB
USD
Net cash generated from/(used in)
operating activities
1,784,388
(1,702,222)
(268,519)
Net cash generated from/(used in)
investing activities
(3,840,244)
6,895,061
1,087,669
Net cash generated from/(used in)
financing activities
1,922,448
(725,147)
(114,389)
Effects of exchange rate changes on cash
and cash
equivalents
23,707
(22,177)
(3,498)
Net increase/(decrease) in cash and cash
equivalents
(109,701)
4,445,515
701,263
Cash and cash equivalents at the beginning
of the
period
23,785,651
26,496,310
4,179,690
Cash and cash equivalents at the end of
the period
23,675,950
30,941,825
4,880,953
1 For the first quarter of 2022 and the same period of 2021, no
Non-IFRS adjustment was made.
2 The take rate of retail credit facilitation business is
calculated by dividing the aggregated amount of retail credit
facilitation service fee, net interest income, guarantee income and
the penalty fees and account management fees by the average
outstanding balance of loans facilitated for each period.
3 Flow rate estimates the percentage of current loans that will
become non-performing at the end of three months, and is defined as
the product of (i) the loan balance that is overdue from 1 to 29
days as a percentage of the total current loan balance of the
previous month, (ii) the loan balance that is overdue from 30 to 59
days as a percentage of the loan balance that was overdue from 1 to
29 days in the previous month, and (iii) the loan balance that is
overdue from 60 to 89 days as a percentage of the loan balance that
was overdue from 30 days to 59 days in the previous month. Loans
from legacy products and consumer finance subsidiary are excluded
from the flow rate calculation.
4 DPD 30+ delinquency rate refers to the outstanding balance of
loans for which any payment is 30 to 179 calendar days past due
divided by the outstanding balance of loans. Loans from legacy
products and consumer finance subsidiary are excluded from the
calculation.
5 DPD 90+ delinquency rate refers to the outstanding balance of
loans for which any payment is 90 to 179 calendar days past due
divided by the outstanding balance of loans. Loans from legacy
products and consumer finance subsidiary are excluded from the
calculation.
6 The take rate for the wealth management business is calculated
by dividing total wealth management transaction and service fees
for current products by average client assets in the Company’s
current products. Part of the wealth management transaction and
service fees do not generate client assets.
7 The liquid assets consist of cash at bank, financial assets at
amortized cost, financial assets purchased under reverse repurchase
agreements and financial assets at fair value through profit or
loss with a maturity of 90 days or less as of March 31, 2022.
8 Platform services are provided by the Company’s platform, and
this income is primarily based on transaction volume.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220525005386/en/
Investor Relations Contact Lufax Holding Ltd Email:
Investor_Relations@lu.com ICR, LLC Robin Yang Tel: +1 (646)
308-0546 Email: lufax.ir@icrinc.com
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