Lufax Reports Q3 2026 Net Loss of RMB 1.494 Billion

Shanghai, October 27, 2026 /PRNewswire/ -- Lufax Holding Ltd. ("Lufax" or the "Company") (NYSE: LU; HKEX: 6623) today announced its unaudited financial results for the third quarter ended September 30, 2026. Lufax is a leading financial services enabler targeting micro and small business owners in China.

Q3 2026 Financial Summary

• Total revenue for the third quarter of 2026 was RMB 6.18 billion (USD 922 million), compared to RMB 6.479 billion in the same period last year.
• The net loss for the third quarter of 2026 was RMB 1.494 billion (USD 223 million), compared to a net loss of RMB 380 million in the same period last year.

Q3 2026 Operational Summary

• As of September 30, 2026, the total outstanding balance of the company’s empowered loans was RMB 167.1 billion, compared to RMB 189.6 billion in the same period last year, a decrease of 11.9%. Of this, the outstanding balance of consumer finance loans was RMB 70.5 billion, compared to RMB 58.9 billion in the same period last year, an increase of 19.8%.
• In the third quarter of 2026, newly disbursed empowered loans amounted to RMB 58.3 billion, compared to RMB 56.9 billion in the same period last year, representing a 2.5% year-over-year increase. Of this, newly disbursed consumer finance loans totaled RMB 39.7 billion, up from RMB 31.7 billion in the same period last year, a 25.2% year-over-year increase.
• As of September 30, 2026, the cumulative number of borrowers reached approximately 35.3 million, an increase of 23.8% compared to approximately 28.5 million as of September 30, 2025.
• As of September 30, 2026, the percentage of enabled loan balances for which the company bears risk, including its consumer finance subsidiary, was 95.8%, higher than 87.3% as of September 30, 2025.
• As of September 30, 2026, the proportion of empowered loan balances for which the company bears risk, excluding the consumer finance subsidiary, was 97.2%, up from 88.6% as of September 30, 2025.
• In the third quarter of 2026, the company's retail credit enablement business achieved a comprehensive fee rate of 14.0% based on loan outstanding balances, compared to 13.0% in the same period last year.
• In the third quarter of 2026, excluding the consumer finance subsidiary, the C-M3 migration rate of the company’s enabled loan portfolio was 1.2%, compared to 1.0% in the second quarter of 2026. Among these, the migration rates for unsecured and secured loans were 1.2% and 1.1%, respectively, compared to 1.0% and 0.9% in the second quarter of 2026.
• As of September 30, 2026, excluding the consumer finance subsidiary, the company’s total empowered loan portfolio had a DPD 30+ delinquency rate of 5.5%, down from 5.8% as of June 30, 2026. The DPD 30+ delinquency rate for unsecured loans was 5.6%, compared to 6.1% as of June 30, 2026; the DPD 30+ delinquency rate for secured loans was 5.0%, unchanged from June 30, 2026.
• As of September 30, 2026, the DPD 90+ delinquency rate for the company’s empowered loan portfolio, excluding the consumer finance subsidiary, was 3.2%, compared to 3.7% as of June 30, 2026. The DPD 90+ delinquency rate for unsecured loans was 3.3%, compared to 3.9% as of June 30, 2026; for secured loans, it was 2.9%, compared to 3.1% as of June 30, 2026.
• As of September 30, 2026, the non-performing loan rate for consumer finance loans was 1.3%, unchanged from June 30, 2026.

Ji Kuisheng, CEO of Lufax, said: "The company's common shares resumed trading on the Hong Kong Stock Exchange on September 24, 2026. We thank our shareholders and the broader investor community for their patience and support. Amid a challenging environment, we continue to implement a prudent customer selection strategy, exit certain high-risk customer segments, and adjust post-loan collection methods. Our DPD 30+ and DPD 90+ delinquency rates decreased sequentially, while the C-M3 migration rate rose to 1.2%."

He stated, "Consumer finance remains our primary growth driver, with new consumer finance loan sales increasing by 25.2% year-over-year, driving overall new loan sales growth of 2.5% to RMB 58.3 billion. Looking ahead, we will continue to operate prudently, focus on high-quality growth, and remain committed to creating long-term value for our shareholders."

Liu Jia, Chief Financial Officer of Lu Jin Su, said: “Our net loss for the third quarter was RMB 1.494 billion, compared to a net loss of RMB 380 million in the same period of 2025. The increased loss reflects higher credit impairment losses and additional income tax expenses, primarily due to a reduction in deferred tax assets and additional withholding taxes recognized from dividends distributed by domestic subsidiaries to meet funding needs of the company and its overseas subsidiaries. These impacts were partially offset by continued cost discipline; expenses, excluding credit impairment losses, financing costs, and other gains or losses, decreased by 13.4% year-over-year. We remain focused on disciplined execution, strengthening governance and controls, and building a more sustainable and higher-quality growth path for Lu Jin Su.”

Third Quarter 2026 Financial Results

Total revenue

Total revenue for the third quarter of 2026 was RMB 6.18 billion (USD 922 million), compared to RMB 6.479 billion in the same period last year, representing a 4.6% year-over-year decline.

• The technology platform revenue was RMB 1.055 billion (USD 157 million), compared to RMB 1.39 billion in the same period last year, representing a 24.1% year-over-year decline. The decrease was primarily due to lower new sales and outstanding loan balances of off-balance-sheet loans, resulting in reduced retail credit and enablement service fees.
• Net interest income amounted to RMB 3.677 billion (USD 548 million), compared to RMB 3.334 billion in the same period last year, representing a 10.3% year-over-year increase, primarily driven by the expansion of consumer finance and small loan businesses.
• Guarantee income amounted to RMB 1.02 billion (USD 152 million), compared to RMB 1.353 billion in the same period last year, representing a 24.6% year-over-year decline, primarily due to lower average outstanding balances and lower average rates on off-balance-sheet loans.
• Other income amounted to RMB 167 million (USD 25 million), compared to RMB 268 million in the same period last year. The decrease was primarily due to lower recovery amounts in the third quarter of 2026, resulting in reduced account management fees.
• Investment income amounted to RMB 261 million (USD 39 million), compared to RMB 134 million in the same period last year. The increase was primarily due to the impact of changes in the fair value of certain assets.

Total fee

Total expenses for the third quarter of 2026 amounted to RMB 6.901 billion (USD 1.029 billion), compared to RMB 6.785 billion in the same period last year, representing a 1.7% year-over-year increase. The growth was primarily driven by an increase in credit impairment losses from RMB 4.089 billion in the prior-year period to RMB 4.511 billion (USD 673 million), a 10.3% increase. This was partially offset by a 13.7% decrease in sales and marketing expenses, which declined from RMB 976 million to RMB 842 million (USD 126 million), and a 16.1% decrease in operations and service expenses, which fell from RMB 922 million to RMB 774 million (USD 115 million). Excluding credit impairment losses, financing costs, and net other gains or losses, total expenses decreased to RMB 2.262 billion (USD 337 million) from RMB 2.613 billion in the same period last year, a 13.4% year-over-year decline.

• Sales and marketing expenses decreased by 13.7% to RMB 842 million (USD 126 million) from RMB 976 million in the same period last year, primarily due to the decline in off-balance-sheet loan balances.
• General and administrative expenses decreased by 12.1% to RMB 420 million (USD 63 million) from RMB 478 million in the same period last year, primarily due to the company’s ongoing efforts to optimize and control costs.
• Operating and service expenses decreased by 16.1% to RMB 774 million (USD 115 million) from RMB 922 million in the same period last year, primarily due to cost control measures and a reduction in loan balances.
• Technical and analytical expenses decreased by 4.2% to RMB 226 million (USD 34 million) from RMB 236 million in the same period last year, primarily due to the company’s cost control measures.
• The credit impairment loss increased by 10.3% to RMB 4.511 billion (USD 673 million) from RMB 4.089 billion in the same period last year, primarily due to higher actual losses and increased provisions on loans and receivables.
• Financing costs increased by 67.1% to RMB 122 million (USD 18 million) from RMB 73 million in the same period last year, primarily due to lower interest income from deposits, partially offset by lower interest expenses on loans.
• Other losses amounted to RMB 5 million (USD 1 million), compared to RMB 10 million in the same period last year. The change was primarily due to the combined impact of increased foreign exchange gains and reduced government subsidies in 2026.

Income tax expense

Income tax expenses increased from RMB 74 million in the third quarter of 2025 to RMB 773 million (USD 115 million) in the third quarter of 2026, representing a 946.5% increase. The increase was primarily due to additional taxes recognized from a reduction in deferred tax assets, based on the company’s current assessment of the overall operations and financial performance of certain subsidiaries, as well as additional accrued income taxes recognized in the third quarter of 2026.

Net loss

The net loss for the third quarter of 2026 was RMB 1.494 billion (USD 223 million), compared to a net loss of RMB 380 million in the same period last year, as explained above.

Loss per ADS

For the third quarter of 2026, the basic and diluted loss per American Depositary Share (ADS) was RMB 1.78 ($0.27). Each ADS represents two ordinary shares.

Balance Sheet

As of September 30, 2026, the company’s bank cash amounted to RMB 21.247 billion (USD 3.169 billion), compared to RMB 22.086 billion as of December 31, 2025. As of September 30, 2026, the company’s net assets totaled RMB 79.982 billion (USD 11.930 billion), compared to RMB 82.041 billion as of December 31, 2025.

Adjustment of Members of the Internal Control Improvement Committee

The company’s board of directors has approved adjustments to the composition of the Internal Control Improvement Committee, effective October 28, 2026. The committee is a special committee established by the board in April 2025 to advance improvements to the company’s internal control system. Yip Dick Chi has resigned as chairman and member of the Internal Control Improvement Committee and will continue to serve as chairman and director of the company. Zheng Shaokang, currently a member of the Internal Control Improvement Committee, has been appointed as its new chairman, and Ji Kuisheng, company director and chief executive officer, has been appointed as a member of the committee.

Phone conference scheduling

The company’s management will hold an earnings conference call on Tuesday, October 27, 2026, at 9:00 PM Eastern Time, which is 9:00 AM Beijing Time on Wednesday, October 28, 2026, to discuss financial results. Those wishing to participate must register online in advance via the link provided by the company. After registration, each participant will receive a dial-in number, conference password, and unique access PIN to join the call.

Registration link: https://dpregister.com/sreg/10212714/1051ae54b60

Live and archived webcasts of the conference call will also be available on the company’s investor relations website: https://ir.lufaxholding.com.

About Lu Jin Suo

Lufax is a leading financial services enabler serving small and micro business owners in China. The company primarily offers financing products designed to meet the needs of small and micro business owners and other groups. To this end, it has established funding partnerships with more than 85 financial institutions in China, many of which have collaborated with the company for over three years.

Exchange Rate Information

Certain RMB amounts included in this announcement have been converted into USD at the specified exchange rate for the reader's convenience only. Unless otherwise stated, all RMB-to-USD conversions are based on the exchange rate of RMB 6.7045 per USD as of September 30, 2026, which is the official rate certified by the Federal Reserve Bank of New York for customs purposes.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “will,” “anticipate,” “expect,” “future,” “intend,” “plan,” “believe,” “estimate,” and similar expressions. Statements that are not historical facts, including statements regarding Lufax’s beliefs and expectations, are forward-looking statements. Lufax makes these forward-looking statements primarily based on its current expectations and predictions regarding future events and financial trends; however, these statements involve known and unknown risks, uncertainties, and other factors, many of which are difficult to predict and beyond the company’s control. These forward-looking statements include, but are not limited to: Lufax’s goals and strategies; future business development, financial condition, and operating performance; expected changes in revenue, expenses, or expenditures; anticipated growth in retail credit empowerment services; expectations regarding demand for services and market acceptance; expectations concerning relationships with borrowers, platform investors, funding sources, product providers, and other business partners; overall economic and business conditions; and government policies and regulations related to Lufax’s industry. Forward-looking statements inherently involve risks and uncertainties. For more information regarding these and other risks, please refer to the filings Lufax has submitted with the U.S. Securities and Exchange Commission. All information contained in this press release is current as of the date of this press release, and except as required by applicable law, Lufax undertakes no obligation to update any forward-looking statements.

Investor Relations Contact

Lufax Holding Ltd.
Email: [email protected]

ICR, LLC
Robin Yang
Phone: +1 (646) 308-0546
Email: [email protected]