LexinFintech Holdings Ltd. (NASDAQ:LX) Q1 2024 Results Conference Call May 23, 2024 10:00 PM ET

Company Participants

Mandy Dong - Director, Investor Relations
Jay Xiao - Founder, Chairman, and Chief Executive Officer
Arvin Qiao - Chief Risk Officer
James Zheng - Chief Financial Officer

Conference Call Participants

Frank Zheng - UBS
Yada Li - CICC
Zoe Zou - CLSA

Operator

Good day, and thank you for standing by. Welcome to LexinFintech First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I'd now like to hand the call over to Mandy Dong, IR Director of Lexin. Please go ahead.

Mandy Dong

Thank you, Desmond. Good morning, and good evening, everyone. Welcome to Lexin's First Quarter 2024 Earnings Conference Call. Our results were issued earlier today and can be found on our IR website. Joining me today are our CEO, Jay Xiao, CRO, Arvin Qiao, and CFO, James Zheng.

Before we get started, I'd like to remind you of our safe harbor statement in our earnings press release, which also applies to this call. During the call, we may refer to business outlook and 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. Last, unless otherwise stated, all figures mentioned are in RMB.

Jay will first provide an update on our overall performance. Arvin will discuss risk management updates. Lastly, James will cover the financial results in more details.

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

Jay Xiao

Hello, everyone. It's my pleasure to give an update regarding our performance for the first the quarter of 2024. Considering current macroeconomic environment and industry dynamics, we adopted a cautious and prudent business strategy in the first quarter. We maintained a dual driven approach of risk and data, aiming to strike a fine balance between growth and quality and achieved a set of healthy results.

Here are the key highlights. In the first quarter, total loan origination for the first quarter reached RMB 58 billion. Loan balance stood at RMB 121.5 billion, a year-over-year increase of 13.5%. Total revenue amounted to RMB 3.2 billion, with a year-over-year growth of 8.7%. Net profit reached RMB 202 million.

In terms of asset quality, in the face of the moderate recovery of macroeconomic environment, the intensified competition among loan facilitation industry and a relatively high risk level of some parts of our existing loan portfolios. We strengthened efforts to collect tail-end assets and disposal of delinquent assets in the first quarter. For newly issued loans we undertook the high credit standards, ensuring the good quality of new assets to be more specific on these 2 grounds of asset quality measures.