Lufax Holding Ltd. (LU) has released an update.
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Lufax Holding Ltd., a key financial services provider for small business owners in China, reported a significant decline in their annual financial performance for 2023, with a total income drop of 41.1% and a notable decrease in net profit from RMB 8,775 million to RMB 1,034 million. The decrease is attributed to reduced loan balances and new loan sales, as the company shifted towards a 100% guarantee model for new loans, which also increased their risk exposure. Despite the challenging market conditions, Lufax remains committed to asset quality and prudent risk management, having completed major de-risking initiatives and laying the groundwork for sustainable growth.
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