Lufax Posts RMB1.49B Q3 Loss as Tax Charge and Credit Costs Swell
LU is trading near its 52-week low of $8.01 (4.9% above the low) on elevated volume (2.1× avg).
Summary
Lufax delivered a Q3 net loss of RMB1,494 million, roughly four times the RMB380 million loss a year earlier and at the low end of the RMB1.3-1.7 billion range it guided to on October 16. Revenue slipped 4.6% to RMB6,180 million as technology platform and guarantee income each fell about 24%, partly offset by 10.3% growth in net interest income from consumer finance. The loss was driven less by operations than by a 946.5% jump in income tax expense to RMB773 million, reflecting a deferred tax asset write-down and additional withholding taxes tied to dividend distributions from domestic subsidiaries, plus credit impairment losses up 10.3% to RMB4,511 million. Cost discipline held: expenses excluding credit impairment, finance costs and other items fell 13.4%. Asset quality improved sequentially, with DPD 30+ down to 5.5% from 5.8% and DPD 90+ down to 3.2% from 3.7%, though the C-M3 flow rate ticked up to 1.2% from 1.0%. The board also moved the Internal Control Improvement Committee chair from Dicky Peter Yip to Siu Hong Cheng effective October 28, with CEO Xiang Ji joining the committee.
At the time of this announcement, LU was trading at $8.40 on NYSE in the Finance sector, with a market capitalization of approximately $1B. The 52-week trading range was $8.01 to $34.40. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: PR Newswire.