BRIEF: Noah Holdings’ profit jumps 63% despite revenue decline
Wealth management firm Noah Holdings Private Wealth and Asset Management Ltd. (NOAH.US; 6686.HK) announced on Tuesday its revenue fell 7.4% year-on-year to 632.9 million yuan ($88.9 million) in the third quarter, while its operating income declined 28.6% to 171.9 million yuan. But its net profit jumped 62.6% year-on-year to 218.5 million yuan.
The company had 466,153 registered clients at the end of September, up 1.3% year-on-year, while its active transacting clients rose 35.5% to 10,650. It distributed 17 billion yuan in products during the quarter, up 19.1%, including 8.6 billion yuan from overseas products, up 11.2%. Its assets under management remained stable at 143.5 billion yuan.
The company noted its quarterly revenue decline owed mainly to lower one-time commissions and sluggish insurance product distribution. It said its net profit increase was primarily driven by fair value gains on investments in associate companies.
Noah said it obtained a U.S. broker-dealer license during the quarter and began integrating AI across its business processes to enhance client acquisition and operational efficiency. It added that its solid balance sheet continues to provide a strong foundation for future investments.
Noah’s stock was little changed on Wednesday morning in Hong Kong and closed at HK$ by the midday break. The stock is up about 18% over the past six months.
By Lee Shih Ta
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