Bruce Orrin's questions to Yiren Digital Ltd (YRD) leadership • Q1 2025
Question
Bruce Orrin from Black Lab questioned the significant increase in the provision for contingent liabilities despite stable delinquency rates and asked for insight into Yiren Digital's dividend commitment for the remainder of the year.
Answer
William Hui, SVP & incoming CFO, clarified that the large provision increase is a required accounting treatment for the growing self-guarantee loan business, where provisions are booked upfront while revenue is recognized over time. He expects the provision growth to peak in Q2 or Q3. Regarding dividends, Mr. Hui reaffirmed the company's commitment to its semi-annual policy and noted they are evaluating the payout ratio to balance shareholder returns with reinvestment for growth. Keyao He, Director of Investor Relations, added that a cash dividend announcement would be made next quarter.