Lufax Holding Ltd – ADR (NYSE:LU) stock fell 2.53% (As on May 23, 11:35:57 AM UTC-4, Source: Google Finance) after the company posted mixed results for the first quarter of FY 23. Net profit was RMB732 million (US$107 million) in the first quarter of 2023, compared to RMB5,290 million in the same period of 2022 and a net loss of RMB806 million in the fourth quarter of 2022. Outstanding balance of loans enabled was RMB495.2 billion as of March 31, 2023, compared to RMB676.3 billion as of March 31, 2022, representing a decrease of 26.8%. Cumulative number of borrowers increased by 9.0% to approximately 19.4 million as of March 31, 2023 from approximately 17.8 million as of March 31, 2022. New loans enabled were RMB57.0 billion in the first quarter of 2023, compared to RMB164.3 billion in the same period of 2022, representing a decrease of 65.3%. During the first quarter of 2023, excluding the consumer finance subsidiary, the Company bore risk on 22.6% of its new loans enabled, up from 20.4% in the same period of 2022.

LU in the first quarter of FY 23 has reported the adjusted earnings per share of 4 cents, beating the analysts’ estimates for the adjusted earnings per share of 2 cents, according to the Zacks Consensus Estimate. The company had reported 41.8 percent decline in the adjusted revenue to $1.47 billion in the first quarter of FY 23, missing the analysts’ estimates for revenue by 8.33%. Technology platform-based income was RMB5,010 million (US$730 million) in the first quarter of 2023, compared to RMB9,292 million in the same period of 2022, representing a decrease of 46.1%. Net interest income was RMB3,349 million (US$488 million) in the first quarter of 2023, compared to RMB4,984 million in the same period of 2022, representing a decrease of 32.8%. Guarantee income was RMB1,417 million (US$206 million) in the first quarter of 2023, compared to RMB1,902 million in the same period of 2022, representing a decrease of 25.5%. Investment income was RMB75 million (US$11 million) in the first quarter of 2023, compared to RMB435 million in the same period of 2022, mainly due to the decrease of fair value of risk assets and investment assets. The Company had RMB51,303 million (US$7,470 million) in cash at bank as of March 31, 2023, as compared to RMB43,882 million as of December 31, 2022.