LexinFintech Reports 113% Profit Surge, Raises Dividend Payout

LexinFintech Holdings Ltd. reported strong financial results for Q1 2025, with net income exceeding RMB 430 million, a 113% year-over-year increase, despite a 4.3% decline in total revenue. The company's profit margin and risk management metrics improved significantly, with reductions in delinquency rates and funding costs, reflecting enhanced asset quality and operational resilience. Lexin's strategic focus on data-driven risk control, technological innovation, and refined operations contributed to these gains, even as total loan originations decreased by 11%. The board approved raising the dividend payout ratio from 25% to 30%, signaling confidence in sustained profitability and shareholder value. Analysts generally maintain a positive outlook on Lexin, with consensus Buy ratings and price targets indicating potential upside, although some valuations suggest caution. Overall, LexinFintech demonstrates strong recovery and growth potential amid macroeconomic uncertainties by leveraging technology and ecosystem synergies.