Lufax reports Q3 EPS 1c, consensus 4c

Reports Q3 revenue $1.103B, two estimates $1.21B. YongSuk Cho, Chairman and CEO of Lufax, commented, “While recent data has indicated that China’s economy is on the road to recovery, high-quality demand for loans from SBOs remained weak in the Q3r. Given this environment, we took steps to further de-risk and diversify our business during the quarter, emphasizing prudent decision-making and long-term, sustainable growth. We continued to prioritize asset quality over quantity, with early indicators suggesting that the asset quality of new loans enabled in 2023 is in line with our expectations, though not yet recovered to pre-COVID levels. We have also secured sufficient credit lines from our funding partners to support our 100% guarantee model for the remainder of 2023 and throughout 2024, laying the foundation for an improved take rate in the long term. Meanwhile, our consumer finance business continued to record healthy growth during the Q3, with new loan sales volume increasing by 15.3% sequentially and 48.5% year over year.”