LexinFintech Holdings Ltd. (NASDAQ:LX) Q2 2022 Earnings Conference Call August 16, 2022 9:30 PM ET

Company Participants

Echo Yan - Investor Relations Director

Jay Xiao - Chairman and Chief Executive Officer

Sunny Sun - Chief Financial Officer

Jayden Qiao - Chief Risk Officer

Conference Call Participants

Yada Li - CICC

Alex Ye - UBS

Hans Fan - CLSA

Operator

Thank you all for standing by, and welcome to the LexinFintech Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

And I would now like to hand the conference over to your speaker, Ms. Echo Yan, IR Director of LexinFintech. Thank you. Please go ahead.

Echo Yan

Thank you, operator. Hello, everyone. Welcome to Lexin's second quarter 2022 earnings call. With us on the line today are our CEO, Jay Xiao; CFO, Sunny Sun, and CRO, Jayden Qiao.

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, Jayden then will discuss risk management.

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

Jay Xiao

Hello, everyone. It is my pleasure to talk to you again and share our second quarter 2022 earnings performance. In the second quarter, total loan originations reached RMB49.1 billion, up 13.9% quarter-over-quarter. Total operating revenue was RMB2,410 million, up 40.9% quarter-over-quarter. Net profit was RMB167 million, up 105.5% quarter-over-quarter. Number of both active users and new active users were higher than those were in the first quarter. Funding cost continued to decrease and risk indicators remain stable. Our CFO and CRO will provide more details later.

The growth in the second quarter was mainly due to the recovered performance of our business in June. In June, the company delivered RMB18.4 billion loan originations. The contribution percentage of loan originations from low risk trading customers increased by 15 in June compared with that number in March. While the risk of new loans was continued to be improved, by the end of the second quarter the percentage of 24 weeks was over 80% and we are capable to meet our relevant compliance rules and regulations. The data in June has shown that we have returned to a steady growth trajectory and growth trends will continue.