BRIEF: LexinFintech’s revenue dips on drop in credit facilitation business
Online loan facilitator LexinFintech Holdings Ltd. (LX.US) on Thursday reported its revenue fell slightly in the second quarter, as strong growth in its tech empowerment services wasn’t enough to offset declines for its core credit facilitation business.
The company reported revenue of 3.59 billion yuan ($500 million) for the three months to June, down 1.5% from 3.64 billion yuan a year earlier. Revenue from its credit facilitation services fell 15% year-on-year to 2.27 billion yuan, while income from its tech empowerment services rose 55% to 830 million yuan.
The company’s net income more than doubled to 511 million yuan from 227 million yuan a year earlier, largely due to a big swing in fair value changes of assets related to its loans and loan guarantees.
LexinFintech’s stock fell 4.2% on Thursday after the announcement. The shares are up about 9% year to date.
By Doug Young
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