Shanghai, October 27, 2026 /PRNewswire/ -- Lufax Holdings Limited ("Lufax" or "the Company") (NYSE: LU; HKEX: 6623) today announced its unaudited financial results for the third quarter ended September 30, 2026. Lufax is a leading financial services provider for small and micro business owners in China.

2026 Third Quarter Financial Summary

• In the third quarter of 2026, the total revenue was 6.18 billion yuan (922 million US dollars), compared to 6.479 billion yuan in the same period of the previous year.
• In the third quarter of 2026, the net loss was 1.494 billion yuan (223 million US dollars), compared to a net loss of 380 million yuan in the same period of the previous year.

2026 Third Quarter Operations Summary

• As of September 30, 2026, the total balance of loans empowered by the company amounted to 167.1 billion yuan, compared to 189.6 billion yuan in the same period of the previous year, representing a decrease of 11.9%. Among these, the balance of consumer finance loans was 70.5 billion yuan, which increased by 19.8% from 58.9 billion yuan in the same period of the previous year.
• In the third quarter of 2026, new empowered loans amounted to 58.3 billion yuan, compared to 56.9 billion yuan in the same period of the previous year, representing a year-on-year increase of 2.5%. Among these, new consumer finance loans totaled 39.7 billion yuan, up from 31.7 billion yuan in the same period of the previous year, showing a year-on-year growth of 25.2%.
• As of September 30, 2026, the cumulative number of borrowers reached approximately 35.3 million, representing a 23.8% increase from about 28.5 million as of September 30, 2025.
• As of September 30, 2026, including the consumer finance subsidiaries, the balance of empowered loans for which the company assumes risk accounted for 95.8%, which is higher than the 87.3% as of September 30, 2025.
• As of September 30, 2026, excluding the consumer finance subsidiaries, the balance of empowered loans for which the company assumes risk accounted for 97.2%, which is higher than the 88.6% as of September 30, 2025.
• In the third quarter of 2026, the comprehensive fee rate for the company's retail credit empowerment business based on loan balances was 14.0%, compared to 13.0% in the same period of the previous year.
• In the third quarter of 2026, excluding the consumer finance subsidiary, the migration rate of the company's total empowered loans C-M3 was 1.2%, compared to 1.0% in the second quarter of 2026. Among these, the migration rates for unsecured loans and secured loans were 1.2% and 1.1%, respectively, while in the second quarter of 2026 they were 1.0% and 0.9%, respectively.
• As of September 30, 2026, excluding the consumer finance subsidiaries, the DPD 30+ overdue rate for loans empowered by the company was 5.5%, which is a decrease from 5.8% as of June 30, 2026. The DPD 30+ overdue rate for unsecured loans was 5.6%, compared to 6.1% as of June 30, 2026; the DPD 30+ overdue rate for secured loans was 5.0%, remaining unchanged from June 30, 2026.
• As of September 30, 2026, excluding the consumer finance subsidiaries, the DPD 90+ overdue rate for loans empowered by the company was 3.2%, compared to 3.7% as of June 30, 2026. For unsecured loans DPD, the 90+ overdue rate was 3.3% as of September 30, 2026, up from 3.9% as of June 30, 2026; for secured loans DPD, the 90+ overdue rate was 2.9% as of September 30, 2026, compared to 3.1% as of June 30, 2026.
• As of September 30, 2026, the non-performing loan ratio for consumer finance was 1.3%, which remained the same as as of June 30, 2026.

Ji Kuisheng, the CEO of Lufax, stated: "The company's ordinary shares resumed trading on the Hong Kong Stock Exchange on September 24, 2026. We are grateful for the patience and support of our shareholders and the broader investor community. In the face of a challenging environment, we continued to implement a prudent customer screening strategy, exited some high-risk customer groups, and adjusted our post-loan collection methods. Our DPD 30+ and DPD overdue rates have decreased month-on-month, while the C-M3 migration rate has risen to 1.2%."

He stated, "Consumer finance remains our main driver of growth. The sales volume of new consumer finance loans increased by 25.2% year-on-year, contributing to an overall increase in new loan sales of 2.5% to 58.3 billion yuan. Looking ahead, we will continue to maintain prudent operations, focus on high-quality growth, and strive to create long-term value for our shareholders."

Liu Jia, the Chief Financial Officer of Lufax, stated: "Our net loss in the third quarter was 1.494 billion yuan, while in the same period of 2025 it was 380 million yuan. The increase in losses reflects an rise in credit impairment losses and additional income tax expenses, mainly due to a decrease in deferred income tax assets, as well as additional income tax provisions recognized through dividends distributed by domestic subsidiaries to meet the funding needs of the company and its overseas subsidiaries. This impact has been partially offset by ongoing cost discipline; excluding credit impairment losses, financing costs, and other gains or losses, expenses decreased by 13.4% year-on-year. We will continue to focus on disciplined execution, strengthen governance and control, and establish a sustainable and higher-quality growth path for Lufax."

Financial Performance for the Third Quarter of 2026

Total Revenue

In the third quarter of 2026, the total revenue was 6.18 billion yuan (922 million US dollars), compared to 6.479 billion yuan in the same period of the previous year, representing a year-on-year decrease of 4.6%.

• The revenue from the technology platform amounted to 1.055 billion yuan (157 million US dollars), compared to 1.39 billion yuan in the same period last year, representing a year-on-year decrease of 24.1%. The decline was mainly due to a reduction in new sales of off-balance-sheet loans and a decrease in loan balances, which led to a reduction in retail credit and empowerment service fees.
• Net interest income amounted to 3.677 billion yuan (548 million US dollars), compared with 3.334 billion yuan in the same period of the previous year, representing a year-on-year increase of 10.3%, mainly due to the expansion of consumer finance and micro-loan businesses.
• The guaranteed income was 1.02 billion yuan (152 million US dollars), compared to 1.353 billion yuan in the same period last year, representing a year-on-year decrease of 24.6%, mainly due to the reduction in the average balance and average rate of off-balance-sheet loans.
• Other revenues amounted to 167 million yuan (25 million US dollars), compared to 268 million yuan in the same period last year. The decrease was mainly due to a reduction in recovery amounts in the third quarter of 2026, which led to a lower account management fee.
• The investment return was 261 million yuan (39 million US dollars), compared to 134 million yuan in the same period last year. The increase is mainly due to changes in the valuation of certain assets.

Total cost

In the third quarter of 2026, total expenses amounted to 6.901 billion yuan (1.029 billion US dollars), compared to 6.785 billion yuan in the same period of the previous year, representing a year-on-year increase of 1.7%. The growth was mainly offset by an increase in credit impairment losses from 4.089 billion yuan in the same period last year to 4.511 billion yuan (673 million US dollars), a rise of 10.3%; meanwhile, sales and marketing expenses decreased from 976 million yuan to 842 million yuan (126 million US dollars), a decrease of 13.7%, and operating and service expenses also fell from 922 million yuan to 774 million yuan (115 million US dollars), a decrease of 16.1%. Excluding credit impairment losses, financing costs, and other net gains or losses, total expenses dropped from 2.613 billion yuan in the same period last year to 2.262 billion yuan (337 million US dollars), a year-on-year decrease of 13.4%.

• Sales and marketing expenses decreased from 976 million yuan in the same period of the previous year to 842 million yuan (126 million US dollars), a reduction of 13.7%, mainly due to the decrease in off-balance-sheet loan balances.
• General and administrative expenses decreased from 478 million yuan in the same period of the previous year to 420 million yuan (63 million US dollars), a reduction of 12.1%, mainly due to the company's continuous efforts in expense optimization and control measures.
• Operating and service expenses decreased from 922 million yuan in the same period of the previous year to 774 million yuan (115 million US dollars), a reduction of 16.1%, mainly due to cost control measures and a decrease in loan balances.
• Technical and analysis expenses decreased from 236 million yuan in the same period of the previous year to 226 million yuan (34 million US dollars), a reduction of 4.2%, mainly due to the company's cost control measures.
• Credit impairment losses increased from 4.089 billion yuan in the same period of the previous year to 4.511 billion yuan (673 million US dollars), a growth of 10.3%, mainly due to actual losses on loans and receivables and an increase in provisions.
• The financing cost increased from 73 million yuan in the same period of the previous year to 122 million yuan (18 million US dollars), a growth of 67.1%. This increase was mainly due to a reduction in deposit interest income, which was partly offset by a decrease in loan interest expenses.
• Other losses amounted to 5 million RMB (1 million USD), compared to 10 million RMB for the same period last year. The change is mainly due to the combined effects of increased foreign exchange earnings and reduced government subsidies in 2026.

Income tax expense

Income tax expenses increased from RMB 74 million in the third quarter of 2025 to RMB 773 million (US$ 115 million) in the third quarter of 2026, representing a growth of 946.5%. The increase is mainly due to the recognition of additional taxes and fees resulting from the reduction in deferred income tax assets based on the company's current assessment of the overall operations and financial performance of certain subsidiaries, as well as the additional income tax provisions recognized in the third quarter of 2026.

Net Loss

In the third quarter of 2026, the net loss was 1.494 billion yuan (223 million US dollars), compared to a net loss of 380 million yuan in the same period of the previous year. The reasons are as mentioned above.

Each ADS loss

In the third quarter of 2026, the basic and diluted loss per American depositary share ( ADS ) was 1.78 RMB (0.27 USD). Each ADS represents two common shares.

Balance Sheet

As of September 30, 2026, the company's bank cash amounted to 21.247 billion yuan (3.169 billion US dollars), compared to 22.086 billion yuan as of December 31, 2025. As of September 30, 2026, the company's net assets were 79.982 billion yuan (11.930 billion US dollars), whereas they were 82.041 billion yuan as of December 31, 2025.

Adjustment to Members of the Internal Control Improvement Committee

The company's board of directors has approved the adjustment to the composition of the Internal Control Improvement Committee, which will take effect from October 28, 2026. This committee was established by the board of directors in April 2025 and is responsible for advancing the improvement of the company's internal control system. Ye Diqi has resigned from his positions as chairman and member of the Internal Control Improvement Committee and will continue to serve as the chairman of the board and a director of the company. Zheng Shaokang, who is currently a member of the Internal Control Improvement Committee, has been appointed as the new chairman of the committee, and Ji Kuisheng, who is also a director of the company and the chief executive officer, has been appointed as a member of the committee.

Telephone Conference Arrangement

The company's management will hold a performance conference call at 9:00 PM on Tuesday, October 27, 2026, Eastern Time (which is 9:00 AM on Wednesday, October 28, 2026, Beijing Time), to discuss financial results. Those who wish to attend are requested to complete online registration through the link provided by the company before the meeting. After registration, each participant will receive a dial-in number, a conference password, and a unique access code PIN to join the teleconference.

Registration link: https :// dpregister.com / sreg /10212714/1051ae54b60

Live and archived webcasts of the teleconference will also be available on the company's investor relations website: https :// ir.lufaxholding.com.

About Lufax

Lufax is a leading financial services empowerment institution that serves small and micro business owners in China. The company mainly provides financing products designed to meet the needs of small and micro business owners and other groups. To this end, Lufax has established capital cooperation relationships with more than 85 financial institutions in China, many of which have been cooperating with the company for over three years.

Exchange Rate Explanation

Some of the amounts in Renminbi stated in this announcement are converted into US dollars using the specified exchange rate for the convenience of readers. Unless otherwise indicated, all conversions of Renminbi to US dollars are made at the exchange rate of 1 US dollar to 6.7045 Renminbi as of September 30, 2026, which is the effective exchange rate certified by the Federal Reserve Bank of New York for customs purposes on that day.

Safe Harbor Statement

This announcement contains forward-looking statements. Such statements are made under the “Safe Harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “will”, “expect”, “anticipate”, “future”, “intend”, “plan”, “believe”, “estimate”, etc. Statements that are not historical facts, including those regarding Lufax’s beliefs and expectations, are considered forward-looking statements. Lufax makes these forward-looking statements based primarily on its current expectations and forecasts regarding future events and financial trends. However, these statements involve known or unknown risks, uncertainties, and other factors, many of which are difficult to predict and beyond the company’s control. These forward-looking statements include, but are not limited to: Lufax’s objectives and strategies; future business development, financial conditions, and operating results; expected changes in revenue, expenses, or expenditures; expected growth in the retail credit empowerment business; expectations regarding service demand and market acceptance; expectations regarding relationships with borrowers, platform investors, funding sources, product providers, and other business partners; the overall economic and business environment; and government policies and regulations related to the industry in which Lufax operates. Forward-looking statements carry inherent risks and uncertainties. For more information regarding these and other risks, please refer to the documents submitted by Lufax to the U.S. Securities and Exchange Commission. All information contained in this press release is as of the date of issuance of this press release. Except as required by applicable laws, Lufax assumes no obligation to update any forward-looking statements.

Investor Relations Contact Person

Lufax Holdings Limited

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