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    Huanan Zhou • UBS Group AG

    Huanan Zhou's questions to Lexinfintech Holdings Ltd (LX) leadership

    Huanan Zhou's questions to Lexinfintech Holdings Ltd (LX) leadership • Q1 2025

    Question

    Huanan Zhou of UBS inquired about the progress and future development plans for Lexin's ecosystem businesses and asked for more details on the current asset quality improvement trend and the strength of its risk management capabilities.

    Answer

    Chairman and CEO Mr. Jay Wenjie Xiao detailed progress across four key areas: online consumer finance, installment e-commerce, offline inclusive finance, and its now-profitable overseas business. He attributed the sustained decline in asset risk to a comprehensive upgrade of their quantitative-driven risk management system, which has improved risk identification, strategy, and pricing. He affirmed their commitment to a risk-centric strategy to ensure the downward trend in asset risk continues.

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    Huanan Zhou's questions to Lexinfintech Holdings Ltd (LX) leadership • Q4 2024

    Question

    Huanan Zhou from UBS asked for an update on Lexin's risk management capabilities, how they compare to industry peers, and the outlook for key risk metrics that investors should monitor in the coming year.

    Answer

    CEO Jay Xiao stated that Lexin's risk management has reached industry-level, with leading capabilities in certain technical aspects, evidenced by two consecutive quarters of improvement in the 90-day delinquency and FPD 30-day ratios. He acknowledged a gap versus peers remains due to legacy loans but expects it to close as the portfolio shifts to higher-quality new assets. For tracking performance, he advised investors to monitor the regularly disclosed 90-day delinquency and FPD-30 ratios, as well as the quarterly trends of the FPD-7 for new assets and the day-1 delinquency ratio for the total portfolio.

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