LexinFintech Reports Robust Earnings Growth Amid Strategic Shift

LexinFintech US5288771034

Chinese fintech platform LexinFintech has announced a substantial surge in profitability for the third quarter of 2025. The company achieved its highest quarterly net income in nearly four years, even as total revenue experienced a modest decline. This performance was accompanied by a reinforced commitment to returning capital to shareholders.

Net profit for the period climbed 68% year-over-year to 521 million Chinese Renminbi (RMB). Total revenue reached 3.42 billion RMB, marking a slight decrease compared to the prior year. The total amount of credit facilitated stood at 50.89 billion RMB.

The significant jump in earnings is attributed to a strategic recalibration of LexinFintech's operations. In response to new interest rate caps implemented in China, the company transitioned from a capital-light to a more capital-intensive credit model. This strategic pivot helped mitigate a decline in overall credit volume and simultaneously drove a 15.3% increase in loan facilitation income. As a result, the net profit margin expanded by 92 basis points to 2.01%.

Other business segments showed positive momentum. Transaction volume for daily necessities commerce grew 58.5% quarter-over-quarter. The company's delinquency rate for loans overdue beyond 90 days remained stable at 3.0%. Management did note, however, a slight uptick in short-term payment delays and cautioned that liquidity and risk conditions could remain volatile through the fourth quarter.

Enhanced Returns to Shareholders

Management is backing its strong financial results with tangible actions for investors. The dividend payout ratio for the second half of 2025 has been raised from 25% to 30% of net income. Furthermore, a share repurchase program authorized in July 2025, with a ceiling of $50 million, is already more than halfway completed.

In a show of confidence, CEO Jay Wenjie Xiao has personally committed to investing up to $10 million in the company's shares within a one-year period—a pledge that is also approximately 50% fulfilled.

Outlook for the Coming Quarters

Looking ahead, LexinFintech anticipates notable profit growth for the full 2025 fiscal year. For the immediate fourth quarter, however, the company projects a sequential decline in net profit, citing ongoing regulatory adjustments as the primary cause. The broader outlook for 2026 remains uncertain due to industry-wide challenges, with management withholding specific guidance for now.