QFIN-S(03660) released its third-quarter performance with a net profit of RMB 1.799 billion, and the overall cost of funds reached a new historical low.

QFIN-S(03660) announced its financial results for the third quarter of 2024, with a total net income of 4.37 billion RMB (Renminbi, the same below), an increase of 2.08% year-on-year; net profit was 1.799 billion RMB, an increase of 58.11% year-on-year; diluted earnings per American Depositary Share (ADS) were 12.18 RMB. In the third quarter of 2024, financial institution partners initiated 23.0423 million loans through the group's platform. As of September 30, 2024, the group's platform has connected a total of 162 financial institution partners and 254 million consumers with potential credit needs, an increase of 11.6% from the previous year's 228 million. The number of users with approved credit limits reached 55.2 million, a 12.2% increase from the 49.2 million as of September 30, 2023. The total number of borrowers who successfully withdrew funds (including repeat borrowers) reached 33.1 million, a 12.6% increase from 29.4 million as of September 30, 2023. Wu Haisheng, CEO and director of QFIN-S, said: "We are pleased to report strong quarterly results despite the challenging macro environment, with signs of initial growth in user activity at the end of the quarter. We have made significant progress in key areas of company operations, improving operational efficiency and achieving better asset returns. This quarter, benefiting from risk improvements and lower funding costs, our net withdrawal rate continued to improve. In our ongoing operation, loans that do not carry credit risk accounted for nearly 55% of total loans. In the third quarter, with more efficient and diversified customer acquisition channels, our unit customer acquisition cost further decreased. At the same time, in the context of an overall loose funding environment, we continue to deepen cooperation with financial institutions, further reducing overall funding costs to a historical low. Although we are encouraged by recent economic stimulus policies, the actual impact of policies on overall consumer demand and behavior may take some time to materialize. Looking ahead, while our asset quality has improved and user activity is beginning to recover, we will continue to prudently manage risks. With our strong team execution, we are actively building a comprehensive credit technology service platform based on user credit and financial institution risk preferences, providing differentiated products and services to users and financial institution partners, believing that this will enable us to seize long-term development opportunities." On November 19, 2024, the company's board of directors approved a new share repurchase plan, authorizing the repurchase of up to $450 million worth of American Depositary Shares or Class A common shares over the next 12 months starting from January 1, 2025. Depending on market conditions and in accordance with applicable rules and regulations, share repurchases may be conducted from time to time on the open market at prevailing market prices, through private negotiations, block trades, and/or other legally permissible methods.