Earnings
Home›Earnings›Results›X Financials second-quarter revenue and loan volumes d…
X Financials second-quarter revenue and loan volumes drop sharply
The company said tighter underwriting for newer loan vintages helped bring down delinquency rates sequentially, even as active borrowers fell 74.8% year over year.
X Financial (NYSE: XYF) reported sharply lower lending activity in its second quarter, with net revenue down 56.3% year over year and 15.5% sequentially to RMB 993.6 million. The active-borrower count fell 74.8% from a year earlier to about 720,258, while the total loan amount facilitated and originated dropped 70.2% to RMB 11.63 billion.
Shares closed at $5.35 on August 24 after the results. The company’s latest quarter pointed to credit metrics stabilizing faster than the business, as management attributed sequential improvements to stricter underwriting for newer loan vintages and additional collection resources.
Delinquency rates improved sequentially, with the company-reported 31- to 60-day delinquency rate declining to 1.73% from 2.61% at the end of the first quarter. The 91- to 180-day rate eased to 9.09% from 9.95%, and management said a shift in transaction mix toward higher-quality borrowers contributed to an average loan size that rose 21.3% year over year to RMB 12,712.
X Financial also reported cost reductions, with total operating costs and expenses down 22.9% from the first quarter and operating income up 38.6% to RMB 194.9 million. Operating margin improved to 19.6% from 12.0% sequentially, though it remained below the 29.7% level from a year earlier.