According to the financial report data, in the third quarter of 2020, lufax holdings achieved revenue of 13.076 billion yuan, a year-on-year increase of 10.5%; affected by the one-time cost adjustment, the net profit reached 2.157 billion yuan, a year-on-year decrease of 36.8%; after excluding the impact of the expenses, the net profit was 3.483 billion yuan, an increase of 2% compared with the same period in 2019.
At the operational level, lufaxs two core businesses are wealth management business and Ping An Pratt & Whitneys retail credit business. Among them, the total assets of wealth management clients was 378.3 billion yuan, an increase of 7.8% year-on-year; the loan balance of Ping An Pratt & Whitney retail credit business was 535.8 billion yuan, with a year-on-year growth of 21.4%.
The end of online loan product cleaning
As of September 30, 2020, the total number of registered users in wealth management held by lufax reached 45 million, an increase of 4.65% year-on-year.
In terms of the progress of online loan repayment, the financial report shows that the proportion of historical products in the wealth management business of lufax in the total customer asset management scale has been less than 9% in the third quarter, and 39% in the same period last year. The proportion of existing products increased to 91%.
During the product adjustment period, the retention rate of customers held by lufax reached 95.2%, compared with 91.6% in the same period in 2019.
In addition, the proportion of middle-class and wealthy investors has further expanded. During the reporting period, the proportion of clients with investment of more than 300000 yuan controlled by Luffa accounted for 77.5% of the total assets, compared with 73.1% in the same period of last year.
The total number of credit is about 14 million
As of September 30, 2020, the total number of Ping An Pratt & Whitney has reached about 14 million, with a year-on-year increase of 16.7%.
In terms of retail credit risk control, as of September 30, 2020, the overdue rate of Ping An Pratt Whitneys general non mortgage loans for more than 30 days was 2.5%, and the overdue rate of mortgage loans for more than 30 days was 0.9%. As of June 30, 2020, the above indicators are 3.3% and 1.4% respectively.
As of September 30, 2020, the overdue rate of general non mortgage loans over 90 days was 1.5%, which was improved compared with the data of 2.1% in the second quarter. The over 90 day overdue rate of mortgage loans was 0.5%, which was better than that of 0.9% in the second quarter.
The overall cost of new credit users is less than 24%
We have achieved solid financial results in the third quarter of 2020, said Zheng Xigui, CFO of lufax holdings. In the face of the impact of the new crown epidemic, we still achieved considerable financial results, and transformed our business model into a more balanced risk sharing model. At the same time, we actively adjusted our annualized interest rate to keep the overall cost of new credit users below 24%.
On August 20, the Supreme Peoples Court issued the newly revised provisions of the Supreme Peoples Court on Several Issues concerning the application of law in the trial of private lending cases, which adjusted the judicial protection upper limit of private lending interest rate to four times of the one-year loan market quotation rate (LPR) issued by the national interbank lending center authorized by the peoples Bank of China as the standard, replacing the original one Two lines and three zones with 24% and 36% as the benchmark. 4% of the latest LPR.
In this regard, Goldman Sachs securities analysis believes that the regulation does not clarify whether the upper limit of 15.4% is internal rate of return (IRR) or nominal annualized interest rate (APR), and whether it is only applicable to loans from non-financial institutions. Since September 4, 2020, lufax has taken conservative measures to reduce the overall cost of new loans to less than 24% of the actual annualized interest rate (including 15.4% IRR and 8.6% credit enhancement fee). The risk of further reducing APR in the future is relatively limited, and due to the high flexibility of lufax holdings in the P2P transformation, I believe the company will even benefit from the industry integration brought about by regulatory changes.
24.44% higher than the issue price
Lufax holdings is a financial technology company incubated by Ping An of China. According to the prospectus, Ping An of China holds 42.3% of the shares and Tun Kung Company Limited (hereinafter referred to as Tun Kung) holds 42.7%. On the evening of October 30, lufax holdings was officially listed on the New York Stock Exchange. The offering price was US $13.50 per share and the total amount of funds raised was about US $2.363 billion.
By the end of December 1, Mideast time, the shares held by LUCC were $16.8, up 2% from the previous days closing price, and 24.44% higher than the offering price in about a month. In the third quarter report, lufax holdings also made a forecast for the full year performance in 2020. It is estimated that in 2020, the new loans of retail credit business will be 558 billion yuan to 568 billion yuan, the total assets of customers at the end of the year will be 395 billion yuan to 420 billion yuan, the total revenue will be 51 billion yuan to 51.5 billion yuan, and the net profit after adjustment (excluding the one-time round C convertible note restructuring fees) will be between 13.2 billion yuan and 13.4 billion yuan. Bank of America Securities predicts that lufaxs net profit will achieve a compound growth rate of 10% from 2019 to 2022, with a target P / E ratio of 18 times. Source: surging news editor: Chen Hequn_ NB12679
In the third quarter report, lufax holdings also made a forecast for the full year performance in 2020. It is estimated that in 2020, the new loans of retail credit business will be 558 billion yuan to 568 billion yuan, the total assets of customers at the end of the year will be 395 billion yuan to 420 billion yuan, the total revenue will be 51 billion yuan to 51.5 billion yuan, and the net profit after adjustment (excluding the one-time round C convertible note restructuring fees) will be between 13.2 billion yuan and 13.4 billion yuan.