BRIEF: Stimulus policies fuel 54.6% jump in Qifu’s quarterly profit
Online lending services provider Qifu Technology Inc. (QFIN.US; 3660.HK) reported on Monday its revenue rose 12.94% year-on-year to 4.69 billion yuan ($653 million) in the first quarter. Its net profit surged 54.6% over the period to 1.8 billion yuan, though it declined 6% from the previous quarter.
Revenue from the company’s credit-driven services reached 3.11 billion yuan during the quarter, up 3.1% year-on-year, while platform service revenue rose 39% to 1.58 billion yuan. The company’s total loan facilitation and disbursement volume for the quarter hit 88.88 billion yuan, marking a 15.8% increase from a year ago.
As of March 31, Qifu’s platform had cumulatively connected 268 million consumers with lenders, up 11.1% year-on-year. The number of users who received credit lines reached 58.4 million, up 11.6% year-on-year, while the number of borrowers who successfully withdrew funds grew 13.8% to 35.5 million.
The company attributed the strong performance to improved user activity early in the quarter, citing a slight rebound in consumer sentiment following government messaging around stimulus policies. However, it noted that lingering economic uncertainty, particularly related to funding costs, could persist through year-end, prompting a cautious approach in business planning.
Qifu’s shares opened 0.5% higher on Tuesday in Hong Kong, and closed flat at HK$178 by the midday break.
By Lee Shih Ta
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