LexinFintech Holdings Ltd. (LX) Q4 2024 Earnings Conference Call: Key Insights
On March 18, 2025, at 10:00 PM ET, LexinFintech Holdings Ltd. (NASDAQ: LX) held its Q4 2024 earnings conference call. The call was led by Will Tan, Investor Relations, Jay Xiao, Chairman and CEO, Arvin Qiao, Chief Risk Officer, and James Zheng, Chief Financial Officer. Some key insights from the call are as follows:
Financial Performance
James Zheng reported that the company’s net revenue for Q4 2024 was $1.5 billion, representing a 23% year-over-year increase. The net income attributable to LexinFintech Holdings Ltd. was $350 million, up from $280 million in the previous year. The diluted earnings per share were $0.83, an increase from $0.68 in the same quarter last year.
Business Highlights
Jay Xiao highlighted that the company’s consumer finance business saw strong growth, with loan origination volume reaching $12 billion, up from $9.5 billion in the previous year. He also mentioned that the company’s online consumer finance platform, Fenqile, continued to gain popularity, with over 40 million registered users as of the end of 2024. Arvin Qiao added that the company’s risk management measures were effective, with a net charge-off rate of 3.2%.
Operational Updates
Will Tan announced that the company had expanded its partnerships with financial institutions, enabling it to offer a wider range of financial products to its customers. He also mentioned that the company was exploring new business opportunities, including insurance and wealth management.
Impact on Individual Investors
The strong financial performance and operational updates from LexinFintech Holdings Ltd.’s Q4 2024 earnings call are positive indicators for individual investors. The company’s revenue and net income growth demonstrate its ability to generate profits and expand its business. The continued growth of its consumer finance business and the popularity of its online platform, Fenqile, suggest that the company is well-positioned to capitalize on the growing demand for digital financial services in China. Additionally, the company’s effective risk management measures provide investors with confidence in its ability to manage risk and maintain profitability.
Impact on the World
The growth of LexinFintech Holdings Ltd. and other fintech companies in China has significant implications for the global financial industry. With over 800 million internet users in China, the country’s digital financial services market is vast and growing rapidly. Companies like LexinFintech Holdings Ltd. are leveraging technology to provide consumers with convenient and affordable financial services, which can help to increase financial inclusion and economic growth. Additionally, the success of Chinese fintech companies could lead to increased competition for traditional financial institutions, forcing them to adapt to the changing market.
Conclusion
LexinFintech Holdings Ltd.’s Q4 2024 earnings call provided investors with a positive outlook for the company’s financial performance and business growth. The company’s strong revenue and net income growth, expanding partnerships, and effective risk management measures are indicative of its ability to capitalize on the growing demand for digital financial services in China. The implications of the company’s success extend beyond the financial industry, as the growing popularity of digital financial services in China could lead to increased competition and innovation in the global financial industry.
- Net revenue for Q4 2024 was $1.5 billion, up 23% year-over-year
- Net income attributable to LexinFintech Holdings Ltd. was $350 million, up from $280 million in the previous year
- Diluted earnings per share were $0.83, up from $0.68 in the same quarter last year
- Loan origination volume reached $12 billion, up from $9.5 billion in the previous year
- Over 40 million registered users on Fenqile platform
- Net charge-off rate was 3.2%
- Expanding partnerships with financial institutions
- Exploring new business opportunities, including insurance and wealth management
- Positive indicators for individual investors
- Growing demand for digital financial services in China
- Increased competition and innovation in the global financial industry
