SHANGHAI, April 22, 2024 /PRNewswire/ -- Lufax Holding Ltd ("Lufax" or the "Company") (NYSE:LU), a leading financial services enabler for small business owners in China, today announced its unaudited financial results for the first quarter ended March 31, 2024. First Quarter 2024 Financial Highlights Total income was RMB6,964 million (US$964 million) in the first quarter of 2024, compared to RMB10,078 million in the same period of 2023. Net loss was RMB830 million (US$115 million) in the first quarter of 2024, compared to net profit of RMB732 million in the same period of 2023.   (In millions except percentages, unaudited) Three Months Ended March 31, 2023 2024 YoY RMB RMB USD Total income 10,078 6,964 964 (30.9 %) Total expenses (8,964) (6,517) (903) (27.3 %) Total expenses excluding credit impairment losses, finance costs andother (gains)/losses (5,685) (3,580) (496) (37.0 %)    Credit impairment losses, finance costs   and other (gains)/losses (3,278) (2,936) (407) (10.4 %) Net profit/(loss) 732 (830) (115) (213.3 %)   First Quarter 2024 Operational Highlights Outstanding balance of loans enabled was RMB270.2 billion as of March 31, 2024 compared to RMB495.2 billion as of March 31, 2023, representing a decrease of 45.4%. Cumulative number of borrowers increased by 12.4% to approximately 21.7 million as of March 31, 2024 from approximately 19.4 million as of March 31, 2023. New loans enabled were RMB48.1 billion in the first quarter of 2024, compared to RMB57.0 billion in the same period of 2023, representing a decrease of 15.6%. During the first quarter of 2024, excluding the consumer finance subsidiary, the Company bore risk on 100% of its new loans enabled, up from 22.6% in the same period of 2023. As of March 31, 2024, including the consumer finance subsidiary, the Company bore risk on 48.3% of its outstanding balance, up from 24.5% as of March 31, 2023. Credit enhancement partners bore risk on 50.1% of outstanding balance, among which Ping An Property & Casualty Insurance Company of China, Ltd. accounted for a majority. As of March 31, 2024, excluding the consumer finance subsidiary, the Company bore risk on 41.6% of its outstanding balance, up from 20.4% as of March 31, 2023. For the first quarter of 2024, the Company's retail credit enablement business take rate[1] based on loan balance was 9.0%, as compared to 7.3% for the first quarter of 2023. C-M3 flow rate[2] for the total loans the Company had enabled, excluding the consumer finance subsidiary, was 1.0% in the first quarter of 2024, compared to 1.2% in the fourth quarter of 2023. Flow rates for the general unsecured loans and secured loans the Company had enabled were 1.0% and 0.7% respectively in the first quarter of 2024, as compared to 1.4% and 0.8% respectively in the fourth quarter of 2023. Days past due ("DPD") 30+ delinquency rate[3] for the total loans the Company had enabled, excluding the consumer finance subsidiary, was 6.6% as of March 31, 2024, as compared to 6.9% as of December 31, 2023. DPD 30+ delinquency rate for general unsecured loans was 7.4% as of March 31, 2024, as compared to 7.7% as of December 31, 2023. DPD 30+ delinquency rate for secured loans was 4.5% as of March 31, 2024, as compared to 4.4% as of December 31, 2023. DPD 90+ delinquency rate[4] for total loans enabled, excluding the consumer finance subsidiary, was 4.4% as of March 31, 2024, as compared to 4.1% as of December 31, 2023. DPD 90+ delinquency rate for general unsecured loans was 5.0% as of March 31, 2024, as compared to 4.6% as of December 31, 2023. DPD 90+ delinquency rate for secured loans was 2.6% as of March 31, 2024, as compared to 2.6% as of December 31, 2023. As of March 31, 2024, the non-performing loan (NPL) ratio[5] for consumer finance loans was 1.6% as compared to 1.5% as of December 31, 2023. Mr. YongSuk Cho, Chairman and Chief Executive Officer of Lufax, commented, "During the first quarter, we maintained our emphasis on quality over quantity as we continued to prioritize operational prudence and long-term stability. Following the completion of five major de-risking and diversification actions, including four mix changes and one business model adjustment, we witnessed some improvements in our early risk indicators. However, we maintained a patient approach to ensure that this success will be sustainable. We have strategically shifted our product mix from SBO loans to a more diverse approach which puts a greater emphasis on consumer finance products. Meanwhile, all new loans during the quarter were either granted by our consumer finance subsidiary or enabled by our guarantee company under our 100% guarantee model. This switch will have a positive impact on our take rate as it eases the burden of elevated CGI premiums, though the upfront provisioning of these loans means our bottom-line will take longer to recover. In terms of asset quality, the C-M3 flow rate for our Puhui business improved from the fourth quarter of 2023 to the first quarter of 2024. Having already witnessed preliminary enhancements to some key operating metrics, we believe that our strategic initiatives have created a solid foundation for ongoing success. We will remain vigilant, and plan to embrace a cautious approach to our operations for the foreseeable future." Mr. Gregory Gibb, Co-Chief Executive Officer of Lufax, commented, "We began to feel the impact of our refined strategic initiatives during the first quarter of 2024. We witnessed the growth of our consumer finance business, with consumer finance loans accounting for 42% of new loan sales in the quarter, up from 24% in the same period last year. Consumer finance loans now comprise 14% of our total balance, an increase from both the year and quarter prior. We have also been growing the portion of loans under our 100% guarantee model, with 26% of Puhui's loan balance now enabled under this model. As of the end of the first quarter, our take rate stood at 9.0% as we built up this balance, and we expect it to rise further in the future through ongoing strategic execution. The improvement in the macro environment, removal of temporary negative impacts from our geographic and direct sales restructuring in the third quarter, and the vintage run off as we build up a new book helped improve our asset quality." Mr. David Choy, Chief Financial Officer of Lufax, commented, "We remain committed to ongoing cost optimizations, as evidenced by the 37% year-over-year decrease in total expenses, excluding credit and asset impairment losses, finance costs, and other losses, and the 27% year-over-year decrease in our total expenses. Furthermore, our leverage level remains low, and both of our main operating entities are well-capitalized. Our guarantee subsidiary's leverage ratio increased to 2.4x, driven by the increase of our guarantee balance associated with our increased risk exposure and the decrease of net assets due to the distribution of dividends, compared to a maximum regulatory limit of 10x. Our consumer finance company's capital adequacy ratio stood at approximately 15.1%, exceeding the required 10.5% regulatory requirement. As of March 31, 2024, our cash at bank balance amounted to RMB39.4 billion." [1] The take rate of retail credit enablement business is calculated by dividing the aggregated amount of loan enablement service fees, post-origination service fees, net interest income, guarantee income and the penalty fees and account management fees by the average outstanding balance of loans enabled for each period. [2] C-M3 flow rate estimates the percentage of current loans that will become non-performing at the end of three months, and is defined as the product of (i) the loan balance that is overdue from 1 to 29 days as a percentage of the total current loan balance of the previous month, (ii) the loan balance that is overdue from 30 to 59 days as a percentage of the loan balance that was overdue from 1 to 29 days in the previous month, and (iii) the loan balance that is overdue from 60 to 89 days as a percentage of the loan balance that was overdue from 30 days to 59 days in the previous month. Loans from legacy products and consumer finance subsidiary are excluded from the flow rate calculation. [3] DPD 30+ delinquency rate refers to the outstanding balance of loans for which any payment is 30 to 179 calendar days past due divided by the outstanding balance of loans. Loans from legacy products and consumer finance subsidiary are excluded from the calculation. [4] DPD 90+ delinquency rate refers to the outstanding balance of loans for which any payment is 90 to 179 calendar days past due divided by the outstanding balance of loans. Loans from legacy products and consumer finance subsidiary are excluded from the calculation. [5] Non-performing loan ratio for consumer finance loans is calculated by using the outstanding balance of consumer finance loans for which any payment is 91 or more calendar days past due and not written off, and certain restructured loans, divided by the outstanding balance of consumer finance loans. First Quarter 2024 Financial Results TOTAL INCOME Total income was RMB6,964 million (US$964 million) in the first quarter of 2024, compared to RMB10,078 million in the same period of 2023, representing a decrease of 31%. Three Months Ended March 31, (In millions except percentages, unaudited) 2023 2024 YoY RMB % of income RMB % of income Technology platform-based income 5,010 49.7 % 2,553 36.7 % (49.0 %) Net interest income 3,349 33.2 % 2,845 40.9 % (15.0 %) Guarantee income 1,417 14.1 % 925 13.3 % (34.7 %) Other income 227 2.3 % 319 4.6 % 40.3 % Investment income 75 0.7 % 322 4.6 % 329.2 % Share of net profits of investments  accounted for using the equity method (0) (0.0 %) (1) (0.0 %) (58.5 %) Total income 10,078 100.0 % 6,964 100.0 % (30.9 %)   Technology platform-based income was RMB2,553 million (US$354 million) in the first quarter of 2024, compared to RMB5,010 million in the same period of 2023, representing a decrease of 49.0%, due to 1) the decrease of retail credit service fees due to the decrease in new loan sales and loan balance and 2) the decrease of referral and other technology platform-based income due to the decrease in transaction volume. Net interest income was RMB2,845 million (US$394 million) in the first quarter of 2024, compared to RMB3,349 million in the same period of 2023, representing a decrease of 15.0%, mainly due to the decrease in loan balance, partially offset by the increase of net interest income from the Company's consumer finance business. Guarantee income was RMB925 million (US$128 million) in the first quarter of 2024, compared to RMB1,417 million in the same period of 2023, representing a decrease of 34.7%, primarily due to the decrease in loan balance and a lower average fee rate. Other income was RMB319 million (US$44 million) in the first quarter of 2024, compared to other income of RMB227 million in the same period of 2023. The increase was mainly due to the increased account management fees driven by improved collection performance. Investment income was RMB322 million (US$45 million) in the first quarter of 2024, compared to RMB75 million in the same period of 2023, mainly due to the decrease of losses associated with certain risk assets, offset by the increase of income from investment assets. TOTAL EXPENSES Total expenses decreased by 27% to RMB6,517 million (US$903 million) in the first quarter of 2024 from RMB8,964 million in the same period of 2023. This decrease was mainly due to the decrease in sales and marketing expenses by 50% to RMB1,518 million (US$210 million) in the first quarter of 2024 from RMB3,030 million in the same ...