Lufax’s consumer loans jump 27.6% as quarterly income falls

Lufax Reports Second Quarter 2026 Financial Results

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Lufax (NYSE: LU; HKEX: 6623) reported unaudited second quarter 2026 results, with total income of RMB6,227 million, down 15.5% year over year, and a narrowed net loss of RMB82 million versus RMB594 million a year earlier.

For the first half of 2026, total income was RMB12,489 million, down 11.3% year over year, and net loss increased to RMB694 million from RMB519 million. Total expenses in Q2 fell 12.7% to RMB6,197 million, with expenses excluding credit impairment, finance costs and other gains/losses down 27.5%.

Total outstanding loan balance declined 13.5% to RMB167.3 billion, while the consumer finance loan balance grew 19.9%. New loans enabled in Q2 rose 4.6% to RMB51.1 billion, driven by 27.6% growth in new consumer finance loans. According to Lufax, governance and internal control enhancements have enabled a return to a normal reporting cadence.

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Positive

• Net loss reduced to RMB82m in Q2 2026, an 86.2% year-over-year improvement
• Total expenses ex-credit/finance/other fell 27.5% year over year to RMB1,974m in Q2 2026
• Net interest income increased 8.4% year over year to RMB3,467m in Q2 2026
• Consumer finance loan balance grew 19.9% year over year to RMB65.4bn as of June 30, 2026
• New consumer finance loans rose 27.6% year over year to RMB36.9bn in Q2 2026
• C-M3 flow rate for enabled loans (ex-consumer finance subsidiary) declined to 1.0% in Q2 2026 from 1.2% in Q1 2026
• DPD 30+ delinquency rate for enabled loans (ex-consumer finance subsidiary) improved to 5.8% at June 30, 2026 from 6.1% at March 31, 2026
• Consumer finance NPL ratio improved to 1.3% at June 30, 2026 from 1.4% at March 31, 2026
• Sales and marketing expenses decreased 22.6% year over year to RMB756m in Q2 2026
• General and administrative expenses decreased 58.7% year over year to RMB208m in Q2 2026

Negative

• Total income declined 15.5% year over year to RMB6,227m in Q2 2026
• First-half 2026 net loss increased 33.7% year over year to RMB694m
• Total outstanding loan balance fell 13.5% year over year to RMB167.3bn as of June 30, 2026
• Company risk-bearing ratio (including consumer finance subsidiary) rose to 93.2% from 83.7% year over year, increasing on-balance risk exposure
• Technology platform-based income decreased 21.2% year over year to RMB1,103m in Q2 2026
• Guarantee income decreased 20.4% year over year to RMB1,105m in Q2 2026
• Investment income decreased 72.3% year over year to RMB283m in Q2 2026
• Credit impairment losses remained high at RMB4,141m in Q2 2026, only 3.2% lower year over year
• First-half 2026 credit impairment losses increased 10.1% year over year to RMB8,654m
• Finance costs rose 126.7% year over year to RMB102m in Q2 2026

No semi-annual dividend is being paid while June 30 cash was RMB19,213 million and net assets were RMB81,448 million.

In its unaudited second-quarter results, Lufax reports that no semi-annual dividend will be paid at this time, so the release does not establish a cash distribution for existing holders.

As of June 30, 2026
, cash at bank was RMB19,213 million
, compared with RMB22,086 million
at December 31, 2025
.

Net assets were RMB81,448 million
at June 30, 2026
, compared with RMB82,041 million
at December 31, 2025
.

Historical earnings context contains 2 events with an average move of -9.2%. That record adds caution to the mixed operating picture; low short positioning is separate risk context, while credit-cost trends warrant monitoring.

Total incomeRMB6,227 million (US$918 million)Q2 2026; down 15.5% year over year
Net lossRMB82 million (US$12 million)Q2 2026; compared with RMB594 million net loss in Q2 2025
Total new loans enabledRMB51.1 billionQ2 2026; up 4.6% year over year
New consumer finance loansRMB36.9 billionQ2 2026; up 27.6% year over year
C-M3 flow rate1.0%Q2 2026; compared with 1.2% in Q1 2026
Consumer finance NPL ratio1.3%June 30, 2026; compared with 1.4% at March 31, 2026
Cash at bankRMB19,213 million (US$2,832 million)June 30, 2026
Semi-annual dividendNo dividendSix months ended June 30, 2026

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Tag-specific earnings events both had negative price reactions, with an average move of -9.2%.

dpd 30+ delinquency ratefinancial
“DPD 30+ delinquency rate for the total loans the Company had enabled”
Days past due (DPD) 30+ delinquency rate measures the share of loans, credit accounts, or receivables that are at least 30 days overdue on scheduled payments. It acts like a thermometer for loan portfolio health: a higher rate means more borrowers are falling behind, which can signal rising credit losses, larger reserve needs, and pressure on earnings and cash flow. Investors watch its level and trend to assess credit risk.
non-performing loan (npl) ratiofinancial
“the non-performing loan (NPL) ratio for consumer finance loans was 1.3%”
The non-performing loan (NPL) ratio measures the share of a lender’s loan book that is past due or unlikely to be repaid, usually expressed as a percentage of total loans. It matters to investors because a higher ratio signals greater credit stress and potential losses for the lender, similar to a household seeing a growing share of unpaid bills among its income sources, which can reduce profitability and capital strength.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Represents Key Milestone as Company Executes Plan to Return to a Normal Reporting Cadence

SHANGHAI, Aug. 18, 2026 /PRNewswire/ — Lufax Holding Ltd (“Lufax” or the “Company”) (NYSE: LU and HKEX: 6623), a leading financial services enabler for small business owners in China
, todayannounced its unaudited financial results for the second quarter ended June 30, 2026.

Second Quarter 2026 & First Half 2026 Financial Highlights

• Total income wasRMB6,227 million
  (US$918 million
  ) in the second quarter of 2026, compared toRMB7,365 million
  in the same period of 2025.

• Net loss wasRMB82 million
  (US$12 million
  ) in the second quarter of 2026, compared to net loss ofRMB594 million
  in the same period of 2025.

Second Quarter 2026 Operational Highlights

• Total outstanding balance of loans was RMB167.3 billion
  as of June 30, 2026, compared to RMB193.4 billion
  as of June 30, 2025, representing a decrease of 13.5%
  , among which the outstanding balance of consumer finance loans was RMB65.4 billion
  as of June 30, 2026, compared to RMB54.5 billion
  as of June 30, 2025, representing an increase of 19.9%
  .

• Total new loans enabled wereRMB51.1 billion
  in the second quarter of 2026, representing an increase of 4.6%
  compared toRMB48.9 billion
  in the same period of 2025, among which new consumer finance loans wereRMB36.9 billion
  in the second quarter of 2026, compared toRMB28.9 billion
  in the same period of 2025, representing an increase of 27.6%
  .

• Cumulative number of borrowers increased by 13.1%
  to approximately 31.4 million as of June 30, 2026 from approximately 27.8 million as of June 30, 2025.

• As of June 30, 2026, including the consumer finance subsidiary, the Company bore risk on 93.2%
  of its outstanding balance, up from 83.7%
  as of June 30, 2025.

• As of June 30, 2026, excluding the consumer finance subsidiary, the Company bore risk on 95.7%
  of its outstanding balance, up from 84.0%
  as of June 30, 2025.

• For the second quarter of 2026, the Company’s retail credit enablement business take rate^[1] based on loan balance was 13.8%
  , as compared to 12.5%
  for the second quarter of 2025.

• C-M3 flow rate^[2]for the total loans the Company had enabled, excluding the consumer finance subsidiary, was 1.0%
  in the second quarter of 2026, compared to 1.2%
  in the first quarter of 2026. Flow rates for the general unsecured loans and secured loans the Company had enabled were 1.0%
  and 0.9%
  respectively in the second quarter of 2026, as compared to 1.2%
  and 1.0%
  respectively in the first quarter of 2026.

• Days past due (“DPD”) 30+ delinquency rate^[3] for the total loans the Company had enabled, excluding the consumer finance subsidiary, was 5.8%
  as of June 30, 2026, as compared to 6.1%
  as of March 31, 2026. DPD 30+ delinquency rate for general unsecured loans was 6.1%
  as of June 30, 2026, as compared to 6.4%
  as of March 31, 2026. DPD 30+ delinquency rate for secured loans was 5.0%
  as of June 30, 2026, as compared to 5.4%
  as of March 31, 2026.

• DPD 90+ delinquency rate^[4] for total loans enabled, excluding the consumer finance subsidiary, was 3.7%
  as of June 30, 2026, as compared to 3.4%
  as of March 31, 2026. DPD 90+ delinquency rate for general unsecured loans was 3.9%
  as of June 30, 2026, as compared to 3.6%
  as of March 31, 2026. DPD 90+ delinquency rate for secured loans was 3.1%
  as of June 30, 2026, as compared to 3.0%
  as of March 31, 2026.

• As of June 30, 2026, the non-performing loan (NPL) ratio^[5] for consumer finance loans was 1.3%
  as compared to 1.4%
  as of March 31, 2026.

“Today’s results mark an important milestone for Lufax as we return to a normal, predictable reporting cadence,” said Mr. Xiang Ji, Chief Executive Officer of Lufax. “Over the past year, we completed the re-audit and audit of our financial statements from 2022 through 2025, engaged Deloitte Consulting Shanghai to strengthen our internal controls, and restructured our board so that independent non-executive directors now hold a majority. These initiatives to strengthen our governance and internal controls have allowed us to resume regular financial reporting to our shareholders and the broader investor community.

“The operating environment for small business owners remained difficult in the second quarter, with financing demand staying weak. In response, we are executing a strategy of prudent operations, anchored by our selective customer strategy, which is shifting our customer mix toward lower-risk borrowers through refined product design, targeted customer acquisition, and an upgraded risk management framework, and by AI-powered refined operations, which are deepening our use of artificial intelligence in customer segmentation and in strengthening relationships with existing customers. These efforts supported continued growth in our consumer finance business, with new consumer finance loan sales up 27.6%
year over year, driving overall new loan sales up 4.6%
year over year to RMB51.1 billion
. Our asset quality also improved on a sequential basis, with our C-M3 flow rate declining to 1.0%
and our consumer finance non-performing loan ratio improving to 1.3%
, both down from the first quarter.

“Financially, we narrowed our net loss to RMB82 million
in the second quarter, an 86.2%
improvement from the same period last year, even as credit costs remained elevated amid a challenging environment for small business owners. We are encouraged by our continued operating efficiency gains, and under our refreshed leadership team, we remain focused on prudent, quality growth and on building long-term value for our shareholders.”

Second Quarter 2026 & First Half 2026 Financial Results

Total income was RMB6,227 million
(US$918 million
) in the second quarter of 2026, compared to RMB7,365 million
in the same period of 2025, representing a decrease of 15.5%
.

• Technology platform-based income was RMB1,103 million
  (US$163 million
  ) in the second quarter of 2026, compared to RMB1,399 million
  in the same period of 2025, representing a decrease of 21.2%
  . This decrease was primarily due to the decrease of retail credit and enablement service fees as a result of the decrease in loan balance.

• Net interest income was RMB3,467 million
  (US$511 million
  ) in the second quarter of 2026, compared to RMB3,199 million
  in the same period of 2025, representing an increase of 8.4%
  , mainly due to the expansion of our consumer finance & microloan lending business.

• Guarantee income was RMB1,105 million
  (US$163 million
  ) in the second quarter of 2026, compared to RMB1,389 million
  in the same period of 2025, representing a decrease of 20.4%
  , primarily attributable to a decrease in the average balance of off-balance sheet loans.

• Other income was RMB269 million
  (US$40 million
  ) in the second quarter of 2026, compared to other income of RMB358 million
  in the same period of 2025. This decrease was primarily due to a decrease in account management fees caused by decreased collections in the second quarter of 2026.

• Investment incomewas RMB283 million
  (US$42 million
  ) in the second quarter of 2026, compared to RMB1,021 million
  in the same period of 2025. This decrease was primarily attributable to the impact of changes in the valuations of certain assets.

Total expenses decreased by 12.7%
to RMB6,197 million
(US$913 million
) in the second quarter of 2026 from RMB7,099 million
in the same period of 2025. This decrease was mainly due to the decrease in sales and marketing expenses by 22.6%
to RMB756 million
(US$111 million
) in the second quarter of 2026 from RMB977 million
in the same period of 2025. Total expenses excluding credit impairment losses, finance costs and other (gains)/losses decreased by 27.5%
to RMB1,974 million
(US$291 million
) in the second quarter of 2026 from RMB2,724 million
in the same period of 2025.

• Sales and marketing expenses decreased by 22.6%
  to RMB756 million
  (US$111 million
  ) in the second quarter of 2026 from RMB977 million
  in the same period of 2025. The decrease was primarily due to the decreased new loan sales and outstanding balance of off-balance sheet loans, slightly offset by the compensation for the dismissal of low productivity direct sales employees.

• General and administrative expenses decreased by 58.7%
  to RMB208 million
  (US$31 million
  ) in the second quarter of 2026 from RMB504 million
  in the same period of 2025, this decrease was primarily due to our continuous personnel optimization and expense control measures.

• Operation and servicing expenses decreased by 20.2%
  to RMB804 million
  (US$118 million
  ) in the second quarter of 2026 from RMB1,008 million
  in the same period of 2025, primarily due to our expense control measures and the decrease in the loan balance.

• Technology and analytics expenses decreased by 12.3%
  to RMB206 million
  (US$30 million
  ) in the second quarter of 2026 from RMB235 million
  in the same period of 2025, primarily due to our improved efficiency and the expense control measures we adopted.

• Credit impairment losses decreased by 3.2%
  to RMB4,141 million
  (US$610 million
  ) in the second quarter of 2026 from RMB4,279 million
  in the same period of 2025, primarily due to the decreased provision of loans and receivables as a result of the decreased risk-bearing loan balance, partially offset by the increase in the actual losses.

• Finance costs increased by 126.7%
  to RMB102 million
  (US$15 million
  ) in the second quarter of 2026 from RMB45 million
  in the same period of 2025, mainly due to the combined effects of the increased loan interest expenses and decreased deposit interest income.

• Other gains were RMB19 million
  (US$3 million
  ) in the second quarter of 2026, compared to other losses of RMB51 million
  in the same period of 2025. The change was primarily due to the foreign exchange gains in 2026 and the one-time tax overdue penalty of a certain subsidiary we recognized in 2025.

Net loss was RMB82 million
(US$12 million
) in the second quarter of 2026, compared to a net loss of RMB594 million
in the same period of 2025, as a result of the aforementioned factors.

Basic and diluted loss per American Depositary Share (“ADS”) were both RMB0.24
(US$0.04
) in the second quarter of 2026. Each ADS represents two ordinary shares.

The Company had RMB19,213 million
(US$2,832 million
) in cash at bank as of June 30, 2026, as compared to RMB22,086 million
as of December 31, 2025. Net assets of the Company amounted to RMB81,448 million
(US$12,004 million
) as of June 30, 2026, as compared to RMB82,041 million
as of December 31, 2025.

In light of the net loss recorded for the six months ended June 30, 2026, the board of directors of the Company has determined that no semi-annual dividend shall be paid at this time.

The Company’s management will hold an earnings conference call at 9:00 P.M. U.S
. Eastern Time on Tuesday, August 18, 2026 (9:00 A.M. Beijing Time on Wednesday, August 19, 2026) to discuss the financial results. For participants who wish to join the call, please complete online registration using the link provided below in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers, the event passcode, and a unique access PIN, which can be used to join the conference call.

Registration Link:https://dpregister.com/sreg/10211235/104a7ebdba9

A live and archived webcast of the conference call will also be available at the Company’s investor relations website at https://ir.lufaxholding.com.

The replay will be accessible through August 24, 2026, by dialing the following numbers:

Lufax is a leading financial services enabler for small business owners in China. The Company offers financing products designed principally to address the needs of small business owners and others. In doing so, the Company has established relationships with over 85 financial institutions in China as funding partners, many of which have worked with the Company for over three years.

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.7851 to US$1.00
, the rate in effect as of June 30, 2026, as certified for customs purposes by the Federal Reserve Bank of New York.

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Statements that are not historical facts, including statements about Lufax’s beliefs and expectations, are forward-looking statements. Lufax has based these forward-looking statements largely on its current expectations and projections about future events and financial trends, which involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control. These forward-looking statements include, but are not limited to, statements about Lufax’s goals and strategies; Lufax’s future business development, financial condition and results of operations; expected changes in Lufax’s income, expenses or expenditures; expected growth of the retail credit enablement; Lufax’s expectations regarding demand for, and market acceptance of, its services; Lufax’s expectations regarding its relationship with borrowers, platform investors, funding sources, product providers and other business partners; general economic and business conditions; and government policies and regulations relating to the industry Lufax operates in. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in Lufax’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Lufax does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Lufax Holding Ltd
Email: Investor_Relations@lu.com

ICR, LLC
Robin Yang
Tel: +1 (646) 308-0546
Email: lufax.ir@icrinc.com 

View original content:https://www.prnewswire.com/news-releases/lufax-reports-second-quarter-2026-financial-results-302854312.html

What were Lufax (NYSE: LU) key financial results for the second quarter of 2026?

Lufax reported Q2 2026 total income of RMB6,227 million and a net loss of RMB82 million. According to Lufax, income declined 15.5% year over year, while the net loss narrowed from RMB594 million in Q2 2025, supported by lower operating expenses.

How did Lufax’s net loss change year over year in Q2 2026?

Lufax’s Q2 2026 net loss narrowed to RMB82 million from RMB594 million a year earlier. According to Lufax, this 86.2% improvement reflected a 27.5% reduction in expenses excluding credit impairment, finance costs and other gains or losses, despite continued elevated credit costs.

How did Lufax’s loan portfolio and new loan originations perform in Q2 2026?

Total outstanding loans fell 13.5% year over year to RMB167.3 billion, while new loans enabled rose 4.6% to RMB51.1 billion. According to Lufax, consumer finance was the growth driver, with its loan balance up 19.9% and new consumer finance loans up 27.6%.

What happened to Lufax’s asset quality metrics in the second quarter of 2026?

Lufax saw mixed but generally improving early-stage indicators in Q2 2026. According to Lufax, C-M3 flow rate for enabled loans (excluding the consumer finance subsidiary) declined to 1.0%, DPD 30+ improved to 5.8%, while DPD 90+ inched up to 3.7% versus March 31, 2026.

How did Lufax’s revenue mix change in Q2 2026 compared with Q2 2025?

Net interest income increased 8.4% year over year to RMB3,467 million, while several fee-based lines declined. According to Lufax, technology platform-based income fell 21.2%, guarantee income 20.4%, and investment income 72.3%, contributing to the 15.5% overall income decline.

What cost trends did Lufax report for the second quarter of 2026?

Lufax reported Q2 2026 total expenses of RMB6,197 million, down 12.7% year over year. According to Lufax, sales and marketing, general and administrative, operation and servicing, and technology and analytics expenses all fell, though finance costs and first-half credit impairment losses increased versus 2025.

What governance and reporting changes did Lufax highlight in its Q2 2026 results?

Lufax stated it has returned to a normal, predictable reporting cadence in 2026. According to Lufax, it completed re-audits of 2022–2025 financials, engaged Deloitte Consulting Shanghai on internal controls, and restructured its board so independent non-executive directors now form a majority.