Lufax Holding Ltd. (06623, NYSE: LU) released unaudited results for the six months ended 30 June 2025. Total income grew 17.00% year on year to RMB14.08 billion, while the net loss narrowed sharply to RMB0.52 billion from RMB2.30 billion a year earlier.

Revenue mix shifted as net interest income rose 5.55% to RMB6.40 billion and guarantee income surged 58.60% to RMB2.82 billion, offsetting a 36.50% decline in technology-platform income to RMB2.89 billion. Investment activities swung to a RMB1.27 billion gain from a RMB1.13 billion loss.

Operating expenses increased 5.20% to RMB13.59 billion, driven mainly by a 44.80% jump in credit-impairment losses to RMB7.86 billion following higher risk exposure; sales and marketing expenses fell 28.60% to RMB2.07 billion as cost controls took hold.

Total outstanding loans stood at RMB193.40 billion, down 17.80% from 30 June 2024, yet consumer-finance loans expanded 29.80% to RMB54.50 billion. New loan originations reached RMB106.10 billion, up 13.70%. Risk-bearing coverage increased to 83.50% (30 June 2024: 56.70%).

Asset-quality indicators improved: • DPD 30+ delinquency ratio declined to 4.60% (30 June 2024: 5.40%). • DPD 90+ delinquency ratio fell to 2.70% (30 June 2024: 3.40%).

The balance sheet remained liquid with RMB27.89 billion in cash and net assets of RMB83.10 billion. The consumer-finance subsidiary reported a 14.6% capital-adequacy ratio, while the financing-guarantee unit’s leverage was 3.6 times. Group gearing ratio stood at 71.5%.

Looking ahead to 2H 2025, management plans to focus on “rollover financing” for high-quality clients to lengthen loan terms and lower funding costs while maintaining a prudent risk stance.

No interim dividend was declared.