Lufax Holding Ltd (NYSE:LU) Posts Mixed Result

By Swapna Meka August 22, 2023, 5:36 pm • Posted in Companies, Stocks

Lufax Holding Ltd – ADR (NYSE:LU) stock fell 6.49% (As on August 22, 11:25:17 AM UTC-4, Source: Google Finance) after the company posted mixed result for the second quarter of FY 23. Net profit was RMB1,004 million (US$138 million) in the second quarter of 2023, compared to RMB2,936 million in the same period of 2022. Technology platform-based income was RMB4,076 million (US$562 million) in the second quarter of 2023, representing a decrease of 44.8%, due to 1) the decrease of retail credit service fees attributable to the decrease in new loan sales and a lower fee rate, and 2) the decrease of referral and other technology platform-based income attributable to the decrease in transaction volume. Net interest income was RMB3,367 million (US$464 million) in the second quarter of 2023, compared to RMB5,010 million in the same period of 2022, representing a decrease of 32.8%, mainly due to the decrease in new loan sales and a lower fee rate, partly offset by the increase of net interest income from the Company’s consumer finance business. Guarantee income was RMB1,149 million (US$158 million) in the second quarter of 2023, compared to RMB1,936 million in the same period of 2022, representing a decrease of 40.7%, primarily due to the decrease in loan balance and a lower fee rate. Investment income was RMB370 million (US$51 million) in the second quarter of 2023, compared to RMB428 million in the same period of 2022, mainly due to the decrease of fair value of investment assets.

LU in the second quarter of FY 23 has reported the adjusted earnings per share of 6 cents, beating the analysts’ estimates for the adjusted earnings per share of 5 cents, according to the Zacks Consensus Estimate. The company had reported 39.4 percent decline in the adjusted revenue growth to $1.28 billion in the second quarter of FY 23, missing the analysts’ estimates for revenue by 17.14%. The Company had RMB 46,928 million (US$6,472 million) in cash at bank as of June 30, 2023, as compared to RMB43,882 million as of December 31, 2022. Net assets of the Company amounted to RMB94,818 million (US$13,076 million) as of June 30, 2023, as compared to RMB94,787 million as of December 31, 2022.