Finvolution Group ((FINV)) has held its Q1 earnings call. Read on for the main highlights of the call.
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In a recent earnings call, FinVolution Group showcased a robust performance in the first quarter of 2025, marked by record-breaking profits and significant international growth. Despite facing macroeconomic uncertainties and seasonal challenges in Indonesia, the company demonstrated strong resilience and adaptability. Key highlights included increased borrower acquisition, international expansion, and technological advancements in risk assessment, which collectively overshadowed any lowlights.
Record-Breaking Net Profit
FinVolution Group reported a record-breaking quarterly net profit of RMB 738 million, the highest since its transition to a loan facilitation model in 2019. This impressive figure represents a 39% year-over-year increase and an 8% quarter-over-quarter rise, underscoring the company’s strong financial performance.
International Business Growth
The company’s international business exhibited remarkable growth, with transaction volumes increasing by 36% year-over-year. The outstanding loan balance rose by 46% to RMB 1.9 billion, contributing 20.4% of the total net revenue in Q1 2025, up from 18.8% the previous year.
Strong Borrower Acquisition
FinVolution successfully onboarded 1.2 million new borrowers in the first quarter, marking a 62% year-over-year increase. Notably, international markets saw a 90% year-over-year rise in new borrowers, marking the fourth consecutive quarter where international acquisitions surpassed those in China.
Improved Risk Assessment
The company reported significant improvements in risk assessment effectiveness, leveraging large language models to enhance their ability to evaluate user default probabilities. This technological advancement is a key factor in their operational success.
Macroeconomic Uncertainties
Despite its successes, FinVolution remains cautious of ongoing macroeconomic uncertainties, including global trade tensions, property sector softness, and evolving regulations in China’s consumer finance sector.
Seasonal Softness in Indonesia
Indonesia experienced some seasonal impact in March due to Ramadan, resulting in slower growth despite a 10% year-over-year increase in transaction volume. This seasonal softness is a temporary challenge the company is addressing.
Forward-Looking Guidance
Looking ahead, FinVolution maintains a cautiously optimistic outlook, reiterating its full-year revenue guidance for 2025 of RMB 14.4 billion to RMB 15 billion, representing a 10% to 15% growth year-over-year. The company aims for its international business to contribute 50% of total revenue by 2030, driven by increased transaction volumes and technological advancements.
In conclusion, FinVolution Group’s earnings call highlighted a strong start to 2025 with record profits and significant international expansion. Despite facing macroeconomic challenges and seasonal impacts, the company remains resilient and optimistic about its future growth prospects. Key takeaways include the company’s strategic focus on international markets, technological innovation, and a cautiously optimistic outlook for the remainder of the year.