LexinFintech Holdings Ltd. (NASDAQ:LX) Q3 2022 Earnings Conference Call November 16, 2022 8:30 PM ET

Company Participants

Echo Yan - Investor Relations Director

Jay Xiao - Chairman and Chief Executive Officer

Sunny Sun - Chief Financial Officer

Jared Wu - President

Conference Call Participants

Hans Fan - CLSA

Frank Zheng - Credit Suisse

Alex Ye - UBS

Operator

Good day, and thank you for standing by. Welcome to the LexinFintech's Third Quarter 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 now I would like to hand the conference over to Ms. Echo Yan, IR Director of LexinFintech. Thank you. Please go ahead.

Echo Yan

Thank you, operator. Hello, everyone. Welcome to Lexin's third quarter 2022 earnings conference call. With us on the line today are our CEO, Jay Xiao; President, Jared Wu; and the CFO, Sunny Sun.

Before we get started, I'd like to remind you that the call and presentation contain business outlook and forward-looking statements, which are based on 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 performance, Sunny will cover the financial results in more detail and lastly, Jared then will discuss risk management.

I'll now turn the call over to Jay. His remarks will be in Chinese, and then English translation will be followed. Jay, please?

Jay Xiao

Hello, everyone. It is my pleasure to speak with you again. In the third quarter, [hence variety] of COVID resurgence and somewhat pressured macro economy will achieve a result that not only continue the recovery trend, but also the past [Technical Difficulty]. Our second and third quarter results demonstrated that our previous obstacles [indiscernible] the sustainable track of clear change for the better.

Our loan volume exceeded the previous guidance at RMB53 billion, reaching RMB56.2 billion for the last quarter, representing an increase of 14% quarter-over-quarter [Technical Difficulty] revenue at RMB2.7 billion, representing an increase of 12% quarter-over-quarter; net profit at RMB280 million, representing an increase of 65% quarter-over-quarter; overall outstanding loan balance at RMB94.6 billion, representing an increase of 9% quarter-over-quarter; total registered users at 180 million, representing an increase of 19% year-over-year. Since the beginning of this year, our asset quality, funding cost and the loan volume improved quarter-over-quarter, providing improvement in our profitabilities. Net margin improved steadily from 4.8% in the first quarter to 10.2% in the third quarter.