the wind and clouds are rising! overseas "gold mining" has become a new growth point
2024-09-08
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as of august 30, qifu technology, oneconnect financial technology, yirendai, creditease technology, lufax holding, xiaoying technology, weixin technology, jiayin technology, and lexinfinance have successively disclosed their second quarter financial reports for 2024.a financial times reporter found that in the first half of this year, the nine listed fintech companies that disclosed their financial reports generally showed a year-on-year increase in operating income and a year-on-year decrease in net profit.
overall, in the first half of 2024, among the nine fintech companies, lufax holding achieved the highest revenue, reaching 12.94 billion yuan, but its revenue fell by 33.12% year-on-year, and its net profit fell by 189.86% year-on-year. the next highest revenue was qifu technology, which achieved revenue of 8.313 billion yuan. not only that, qifu technology also achieved the highest net profit in the first half of 2024, reaching 2.537 billion yuan. at the same time, its revenue increased by 10.65% year-on-year, and its net profit increased by 25.41% year-on-year, making it one of the few fintech companies to achieve "double growth" year-on-year.
increased revenue but no increased profits
asset quality under pressure
affected by multiple factors such as the complex market environment and industry adjustments, most financial technology companies are facing the problem of rising delinquency rates.
according to incomplete statistics from reporters, as of june 30, xiaoying technology's overdue rate of more than 90 days was 4.38%, an increase of 1.88 percentage points from the previous year; weixin technology's overdue rate of more than 90 days was 3.82%, an increase of 1.56 percentage points from the same period last year; yirenzhike's loan delinquency rate for overdue 60-89 days was 1.6%, an increase of 0.2 percentage points from the same period last year.
in contrast, lufax's delinquency rate was higher but the growth was relatively small compared with the same period last year, at 0.1 percentage point. lufax holding chairman and ceo zhao yongshik said, "in the second quarter, our focus on quality over quantity led to a significant improvement in our asset quality."
corresponding to this is the decline in loan size. during the reporting period, lufax holding's outstanding loan balance was 235.2 billion yuan, a year-on-year decrease of 44.80%; xiaoying technology's outstanding loan balance was 41.804 billion yuan, a decrease of 7.25% from 45.071 billion yuan in the same period of 2023. lexin, the only company with positive growth, had an outstanding loan balance of 115 billion yuan during the reporting period, a year-on-year increase of only 0.9%.
it can be seen that many financial technology companies mentioned "prudent operation" in their financial reports, and adopted more flexible strategies during the reporting period to adapt to the ever-changing market environment and actively manage loan volumes based on asset quality.
overall, in the first half of 2024, the asset quality of most fintech companies was under pressure, and strengthening risk management remained the key to operations.
layout of overseas markets
using ai to increase efficiency
judging from the semi-annual reports that have been released, many financial technology companies have achieved remarkable results in business expansion and innovation. many companies have actively laid out international markets, and their international business has grown significantly.
lexin regards overseas business as an important strategic direction. data shows that its loan scale in the mexican market increased by 61% and revenue increased by 113% in the second quarter; jiayin technology's overall performance and operating conditions in indonesia exceeded expectations at the beginning of the year, and the scale of its business in nigeria also increased further compared with the previous quarter.
in the first half of 2024, the revenue contribution of overseas customers of oneconnect financial technology increased by 14.8% year-on-year. as of now, its business covers 20 countries and regions including south africa, singapore, thailand, malaysia, indonesia, etc., and has served a total of 186 overseas financial institutions, with both loan scale and revenue achieving significant growth.
at the same time, technological innovation remains the core competitiveness of financial technology companies. many companies continue to increase their investment in scientific and technological research and development, launch new financial technology products and services, improve the recognition efficiency and accuracy of customer business access data, conduct refined customer operations, and achieve cost reduction and efficiency improvement. for example, since the first quarter of this year, a financial technology company has increased its labor efficiency by 4.1%, the user conversion rate on the agent side has increased by 5.6%, and the management efficiency has increased by 50%. at the same time, the accuracy of business processing has also increased by 1.2% compared with before use.
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