The following is a summary of the Lufax Holding Ltd (LU) Q1 2024 Earnings Call Transcript:
Financial Performance:
Lufax's total income was at 7 billion RMB, a decrease of 30.9% from the same quarter of the previous year due to lower new loan sales and outstanding loan balance.
The first quarter saw a decrease in new loan sales by 15.6%, caused by weak loan demand from Small Business Owners and strategic business shift from quantity to quality.
Pre-tax profits were RMB447 million in Q1 2024, a drop from RMB1.1 billion from the same period of the previous year.
Net loss of RMB830mn was reported for Q1 largely due to an increase in tax related to the special dividend.
Business Progress:
Lufax has noted an improvement in overall asset quality due to effective de-risking and diversification actions.
Despite decreased overall loan sales, new loan sales in consumer finance business increased by 46% YoY to RMB20.3 billion in Q1.
The company completed its acquisition of Ping An OneConnect Bank, ensuring diversification in service offerings.
Executive changes announced with CFO David resigning on April 30 and Zhu Peiqing taking his place.
A special dividend plan of USD 2.42 per ADS or USD 1.21 per ordinary share has been proposed, pending approval at the AGM.
Lufax expects the new loan volume to remain between RMB190 billion to RMB220 billion by year end, mirroring the previous quarter's outlook.
More details: Lufax IR
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