Release Date: November 20, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: We noticed in the third quarter, loan volume increased 4.4% sequentially. What are the drivers, and will the company consider more positive loan volume growth next year? A: Haisheng Wu, CEO: We achieved good growth in Q3, with a slight recovery in customer demand by September. Our platform strategy has positively impacted customer retention and lifetime value. However, due to macroeconomic uncertainties, we remain prudent and focused on healthy operations. If growth opportunities arise, we are well-positioned to seize them.
Q: The writeback amount was over RMB900 million, a sizable increase from last quarter. What drove this uptick, and how sustainable is it? A: Alex Xu, CFO: We maintain a prudent provision policy, resulting in consistent writebacks. The Q3 writeback was driven by improved risk metrics and a prudent provision booking policy. We expect sizable writebacks to continue, although the shift to a capital-light model may reduce the need for large provisions in the future.
Q: Your major asset quality metrics improved in Q3. What is your outlook for asset quality, and why is QFIN seeing improvements while others face pressure? A: Yan Zheng, CRO: Our focus on high-quality development and tightening credit standards have driven improvements. Technologically, we've enhanced risk management systems and optimized risk models, leading to better asset quality. We expect stable risk performance assuming a stable macro environment.
Q: The pace of share buyback has been fast this year, and a new USD450 million plan was announced. What is the pace of buyback in 2025, and any considerations for repurchase price? A: Haisheng Wu, CEO: We are committed to completing our current buyback program, reducing share count by about 12%. We believe our shares are undervalued and will prioritize buybacks. The new plan will be executed proactively, focusing on attractive valuations.
Q: The take rate improved from 4.4% last quarter. What drove this increase, and do you expect further improvement next year? A: Alex Xu, CFO: The improvement was driven by better risk performance, lower funding costs, and mix changes. We expect a similar take rate in Q4 and potential improvement next year, assuming stable macro conditions. Long-term take rate depends on macroeconomic recovery.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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