Lufax Holding Ltd, a leading financial services provider for small business owners (SBOs) in China, reported its unaudited consolidated annual results for the year ended December 31, 2023. The report, prepared in accordance with IFRS, showed a significant decrease in total income and net profit compared to the previous year. Total income dropped by 41.1% to RMB34,255 million, while net profit plummeted by 88.2% to RMB1,034 million. The company's total outstanding balance of loans was RMB315.4 billion, a 45.3% decrease from the previous year, and the total volume of new loans fell to RMB208.0 billion. Lufax continued to transition towards a 100% guarantee model for new loans and secured sufficient credit lines and funding partners to support this model. The company's risk exposure increased as it guaranteed a...Show More

Lufax Holding Ltd, a leading financial services provider for small business owners (SBOs) in China, reported its unaudited consolidated annual results for the year ended December 31, 2023. The report, prepared in accordance with IFRS, showed a significant decrease in total income and net profit compared to the previous year. Total income dropped by 41.1% to RMB34,255 million, while net profit plummeted by 88.2% to RMB1,034 million. The company's total outstanding balance of loans was RMB315.4 billion, a 45.3% decrease from the previous year, and the total volume of new loans fell to RMB208.0 billion. Lufax continued to transition towards a 100% guarantee model for new loans and secured sufficient credit lines and funding partners to support this model. The company's risk exposure increased as it guaranteed a larger proportion of new loans. Despite the challenging macro conditions affecting SBOs and the demand for high-quality loans, Lufax completed major de-risking and diversification initiatives. For 2024, Lufax forecasts new loan sales between RMB190 billion to RMB220 billion and a year-end loan balance between RMB200 billion to RMB230 billion. The company's annual report and financial statements for 2023 are still under audit by PricewaterhouseCoopers. Lufax's Board did not recommend an annual dividend for 2023 but proposed a special dividend subject to shareholder approval at the upcoming annual general meeting on May 30, 2024.