LexinFintech Holdings Ltd. (NASDAQ:LX) Q4 2022 Earnings Conference Call March 13, 2023 9:30 PM ET
Company Participants
Jamie Wang - Investor Relations Manager
Jay Xiao - Chairman and Chief Executive Officer
James Zheng - Chief Financial Officer
Jared Wu - President
Conference Call Participants
Yada Li - CICC
Alex Ye - UBS
Operator
Good day, and thank you for standing by. Welcome to LexinFintech's Fourth Quarter and Full-Year 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.
And I would like to turn the conference over to your first speaker today, Ms. Jamie Wang, IR Manager. Thank you. Please go ahead.
Jamie Wang
Thank you. Hello, everyone. Welcome to Lexin's fourth quarter and full-year 2022 earnings conference call. With us on the line today are our CEO, Jay Xiao; President, Jared Wu; and CFO, James Zheng.
Before we get started, I'd like to remind you that the call and presentation containing business outlook and forward-looking statements, which are based on the assumptions as of today. The actual results may differ materially, and we undertake no obligation to update any forward-looking statements.
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'll now turn the call over to our CEO, Jay. His remarks will be in Chinese, and the English translation will follow. Jay?
Jay Xiao
Good morning, and good evening, everyone. It's my pleasure to speak with you again. In the fourth quarter of 2022, the COVID situation in China underwent a major turning point, bringing considerable pressures to the Chinese economy. But despite such pressure, we were able to achieve satisfactory results by rigorously adhering to a strategy of prioritizing risk management, making data-driven decisions, and continuously focusing on improving and refining our operations.
Our loan originations for the past quarter reached RMB56.1 billion, representing an increase of 29% year-over-year with total outstanding loan balance reaching RMB99.6 billion as of December 31, 2022, representing an increase of 16% year-over-year. Total revenue reached RMB3.1 billion, representing an increase of 38.7% year-over-year with net income reaching RMB301 million, representing an increase of 17.9% year-over-year.
Our asset quality continues to steadily improve. And in addition, funding costs decreased to 6.8% from 7.0% in the third quarter. Our net profit margin increased substantially from 4.8% in the first quarter of 2022 to 9.9% this past quarter. From our fourth quarter numbers, we can see that Lexin has clearly produced three consecutive quarters of steadily improving profitability, realizing a V-shaped recovery.