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China's Lufax prelim Q3 net loss widens on higher credit impairment losses

By Reuters News


Overview

  • China financial services enabler's preliminary Q3 total income fell 4.6% yr/yr

  • Net loss widened in Q3, mainly due to higher credit impairment losses and tax expenses

  • Consumer finance loan sales rose 25.2% yr/yr, supporting overall new loan growth


Outlook

  • Company plans to continue selective customer strategy and exit high-risk segments


Result Drivers

  • CONSUMER FINANCE LOANS - Growth in consumer finance loan sales drove overall new loan growth

  • NET INTEREST INCOME - Co attributed rise in net interest income to expansion of consumer finance and microloan lending

  • CREDIT IMPAIRMENT LOSSES - Co said higher credit impairment losses were due to increased actual losses and provisions for loans and receivables


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Total Income

RMB 6.18 bln

Q3 Loss Per Share

RMB 0.89

Q3 Net Loss

RMB 1.49 bln

Q3 Net Interest Income

RMB 3.68 bln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the corporate financial services peer group is "buy"

  • Wall Street's median 12-month price target for Lufax Holding Ltd is $15.00, about 76.5% above its October 27 closing price of $8.50

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago


Reuters Recommended Reads

  • Oct 26 - China's CITIC Securities Q3 profit falls 20.2% on weak stock market

  • Oct 27 - China's industrial profit growth picks up amid deepening economic divergence


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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