LexinFintech Holdings Ltd. (NASDAQ:LX) Q2 2023 Earnings Conference Call August 29, 2023 10:00 PM ET

Company Participants

Mandy Dong - Director of Investor Relations

Jay Xiao - Chief Executive Officer

Jared Wu - President

James Zheng - Chief Financial Officer

Conference Call Participants

Frank Zheng - Credit Suisse

Alex Ye - UBS

Yada Li - CICC

Operator

Hello, and welcome to the LexinFintech's Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

It is now my pleasure to introduce IR Director, Mandy Dong.

Mandy Dong

Thank you. Hello everyone. Welcome to Lexin second quarter 2023 earnings conference call. Our results were issued earlier today, and it can be found on our IR Web site. Joining me today are our CEO, Jay Xiao; President, Jared Wu; and CFO, James Zheng.

Before we get started, I'd like to remind you our Safe Harbor statement and our earnings press release, which also applies to this call. During the call we may refer to business outlook and the forward-looking statements, which are based on our current plans, estimates, and projections. The actual results may differ materially, and we undertake no obligation to update any forward-looking statements. Unless otherwise stated, all figures mentioned are in RMB.

Jay will first provide an update on our overall performance. James will cover the financial results in more detail. And lastly, Jared will then discuss risk management.

I will now turn the call over to Jay. His remarks will be in Chinese. And the English translation will follow.

Jay Xiao

[Foreign Language]

Hello, everyone. It's my pleasure to share with you our performance for the second quarter of 2023. In the current macroeconomic environment we have achieved another strong quarterly results by adopting a prudent business approach. Loan volumes for the second quarter was RMB63.9 billion, up 30% year-over-year, once again exceeding the high end of our guidance. Loan balance reached RMB114.1 billion, up 32% year-over-year. Revenue was RMB3.1 billion, up 27% year-over-year. Net profit was RMB356 million, up 112% year-over-year.

[Foreign Language]

In the second quarter we adhered to the two main focuses of risk and data, pushed forward more refined operations, iteratively upgraded user risk identification systems, and improved the quality of new assets. The e-commerce business grew rapidly. And the synergies with the main consumer finance business got further enhanced. We have achieved solid business growth for the five consecutive quarters, with profitability and cash flow improving significantly. In addition, we attached great importance to compliance capability-building and successfully completed the stage-by-stage credit reform which was to disconnect with financial institutions in Chinese [Foreign Language] as scheduled in accordance with the June 30 end-day compliance requirements.