Lufax Holding Ltd recorded total income of RMB24.51 billion in 2024, a 28.5% decrease from RMB34.29 billion in 2023, primarily due to reduced loan facilitation volumes and lower fee income. Net interest income stood at RMB12.31 billion, while guarantee income reached RMB3.58 billion, both lower than the prior year. The Company reported a net loss of RMB3.60 billion, reversing from a net profit of RMB1.00 billion in 2023.
Segment-wise, the outstanding loan balance in the core retail credit and enablement business decreased notably to RMB166.80 billion as of December 31, 2024, compared with RMB278.30 billion in 2023. In contrast, the consumer finance subsidiary, focused on smaller-scale personal financing, grew its outstanding balance from RMB37.10 billion in 2023 to RMB50.10 billion in 2024. Management attributed these shifts to evolving market conditions, regulatory requirements, and strategic adjustments toward licensed financing and reduced reliance on third-party credit enhancement.
Total expenses rose in absolute terms between 2023 and 2024, reflecting sales, marketing, and credit impairment costs, with credit impairment losses at RMB12.61 billion in 2024. Cash flow from operating activities declined to RMB1.82 billion in 2024 from RMB12.72 billion in 2023, influenced by lower total income and changes in loan-related balances. Meanwhile, net cash used in financing activities was RMB11.28 billion in 2024, partly from borrowings and repayments over the period.
The Company’s balance sheet showed total assets of RMB203.54 billion at the end of 2024, down from RMB234.38 billion in 2023, alongside a decrease in total liabilities from RMB141.89 billion to RMB119.94 billion. Equity attributable to owners fell to RMB81.77 billion in 2024, compared with RMB90.94 billion a year earlier.
Industry-wide, regulatory oversight on lending continued to shape the business environment, requiring robust risk management and compliance efforts. Lufax Holding Ltd underscored the application of big data analytics and artificial intelligence in assessing borrower creditworthiness. The Company also widened its presence in the microfinance sector and maintained funding arrangements with banks, trusts, and credit enhancement partners.
During the reporting period, governance activities included Board changes and committee oversight. Certain directors resigned and new appointments took effect, demonstrating ongoing adjustments in leadership roles. Independent Non-executive Directors assumed key positions, including Audit Committee responsibilities to supervise financial reporting and regulatory adherence. External auditing functions were carried out by Ernst & Young, following the cessation of PricewaterhouseCoopers’s role in mid-2025. The corporate governance framework emphasized risk control, internal audits, and the board-driven approval of major strategies and policies.
Overall, Lufax Holding Ltd navigated a challenging operating climate in 2024, characterized by streamlined lending initiatives, a focus on licensed consumer finance, and Board-level revisions. Management consistently highlighted risk management, capital utilization, and digital tool enhancements as core elements in responding to industry demands and maintaining operational stability for the year under review.