The following is a summary of the CNFinance Holdings Limited (CNF) Q4 2023 Earnings Call Transcript:
Financial Performance:
CNFinance reported year-end loans of 17.3 billion RMB, indicating an 18% growth compared to the previous year.
A marginal increase in interest income was seen in 2023 whilst interest expense decreased by 8% due to the optimized funding structure.
There was a 23% reduction in provision for credit losses owing to stronger commercial bank partnerships. This led to a substantial net income growth of 21%, with the income being 165 million RMB.
Business Progress:
CNFinance originated 5 billion RMB loans under commercial bank partnership, generating a net revenue of approximately 88 million RMB.
The company fine-tuned its installment policy for repurchasing delinquent loans, thereby relieving liquidity pressure on sales partners.
In response to the uncertainties in the real estate market, the firm has decided to concentrate in core areas of Chinese cities, grounding 90% of its loans in Tier 1 and Tier 2 cities.
Through technology, CNFinance has been able to refine credit assessments, leading to a notable decrease in the delinquency ratio in 2023.
The company anticipates a diversification in product offerings in 2024, aiming to target quality collaterals and borrowers with superior risk profiles.
More details: CNFinance IR
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