SHANGHAI – October 29, 2026 -- Lufax Holding Ltd (NYSE: LU, HKEX: 6623) reported a third-quarter 2026 net loss of RMB1,494 million (US$223 million), up from RMB380 million a year earlier, as credit impairment losses rose 10.3% and income tax expenses jumped 946.5%.
Total income falls 4.6% as fee-based revenue shrinks
Total income fell to RMB6,180 million (US$922 million) from RMB6,479 million in the third quarter of 2025. Technology platform-based income dropped 24.1% to RMB1,055 million, reflecting lower retail credit enablement service fees from reduced new loan sales and a smaller off-balance sheet loan balance. Guarantee income declined 24.6% to RMB1,020 million on a lower average off-balance sheet balance and lower average fee rates.
Net interest income rose 10.3% to RMB3,677 million, driven by expansion of consumer finance and microloan lending. Investment income climbed to RMB261 million from RMB134 million on asset valuation changes. Other income fell to RMB167 million from RMB268 million as account management fees declined with lower collections.
Credit impairment losses climb 10.3% to RMB4,511 million
Total expenses increased 1.7% to RMB6,901 million (US$1,029 million). Credit impairment losses, which reflect higher actual losses and provisions on loans and receivables, accounted for the rise from RMB4,089 million.
Cost cuts offset part of the increase. Sales and marketing expenses fell 13.7% to RMB842 million, operation and servicing expenses fell 16.1% to RMB774 million, and general and administrative expenses fell 12.1% to RMB420 million. Expenses excluding credit impairment losses, finance costs and other gains or losses declined 13.4% to RMB2,262 million. Finance costs rose 67.1% to RMB122 million, mainly on lower deposit interest income.
Consumer finance drives loan growth as total balance drops 11.9%
New loans enabled rose 2.5% to RMB58.3 billion, with new consumer finance loans up 25.2% to RMB39.7 billion. The outstanding balance of loans enabled shrank 11.9% to RMB167.1 billion, while the consumer finance balance grew 19.8% to RMB70.5 billion. Cumulative borrowers increased 23.8% to about 35.3 million.
Lufax now bears risk on 95.8% of its outstanding loan balance including the consumer finance subsidiary, up from 87.3% a year earlier. Excluding that subsidiary, the share is 97.2%, compared with 88.6%. The retail credit enablement take rate based on loan balance rose to 14.0% from 13.0%.
Delinquency rates ease while C-M3 flow rate rises to 1.2%
Excluding the consumer finance subsidiary, the DPD 30+ delinquency rate declined to 5.5% from 5.8% at the end of June 2026. The DPD 90+ rate fell to 3.2% from 3.7%. For general unsecured loans, DPD 90+ dropped to 3.3% from 3.9%, and for secured loans to 2.9% from 3.1%. The C-M3 flow rate rose to 1.2% from 1.0% in the second quarter. The consumer finance NPL ratio held at 1.3%.
CEO Xiang Ji said the company exited certain high-risk customer segments, applied a selective customer strategy and adjusted post-loan collection. He noted that Hong Kong trading resumed on September 24, 2026.
Deferred tax asset reduction and withholding taxes lift tax expense to RMB773 million
Income tax expenses rose to RMB773 million (US$115 million) from RMB74 million. CFO Jia Liu attributed the increase to a reduction of deferred tax assets and additional withholding taxes. The withholding taxes arose from dividend distributions from domestic subsidiaries to meet the funding needs of the company and its overseas subsidiaries.