All the figures indicate that the company has recovered from the pandemic downturn.
December 1, Lufax(LU:NYSE) released the financial result for the third quarter of 2020 with robust performance reached continuously.
During the nine-month period from January to September, the revenue increased year-over-year by 10.5% to CNY 13.08 billion (around USD 1.93 billion), even with half of the time suffered from the pandemic. The adjusted net income excluded the non-recurring charge posted 2% growth year-over-year, reaching CNY 3.48 billion (around USD 513 million). The one-time charge of CNY 1.33 billion (around USD 195 million) was generated during the convertible notes restructuring process before IPO.
The operating results also showed a rebound from the downturn of the pandemic. The loan balance outstanding ran up by 21.4%, with accumulated borrowers increased by 16.7%. The registered users on the wealth management platform achieved 45 million from 43 million during the same period last year. The total client assets also went up by 7.81%.
It is worth mentioning that the ratio of loan past due 30 days and 90 days had both significantly improved during the three-month period of 0.8% and 0.6% decrease compared to the end of June, back to the level before the COVID-19.
Lufax expects the adjusted net income to reach CNY 13.2 billion to 13.4 billion for the entire 2020. The loan balance outstanding is expected to achieve CNY 558 billion to 568 billion with 6% growth in maximum, the client assets are likely to make CNY 395 billion to 420 billion, with 11% growth at most.
Lufax is the largest fintech arm of Ping An Group, one of the leading financial conglomerates in China. The company went public on NYSE on October 30 under 'LU.' The stock opened at 16.83 on December 2 but dropped by 10% in the morning trading along with the sell-off in China concept stocks.