Lufax Reports Third Quarter 2026 Net Loss Amid Rising Credit Impairment Costs
Lufax reported a third-quarter net loss of RMB 1,494 million for 2026, primarily driven by a 10.3% year-over-year increase in credit impairment losses to RMB 4,511 million. The company noted that economic pressures on borrowers and stricter debt collection regulations necessitated higher provisions for unpaid loans. Despite the net loss, Lufax saw significant growth in its consumer finance segment, with new loan sales rising 25.2% year-over-year to RMB 39.7 billion. This segment now accounts for over two-thirds of total new loan sales as the company shifts toward smaller, shorter-term loans to mitigate risk. To manage regulatory volatility regarding debt recovery, Lufax is increasingly relying on its in-house collection teams rather than external providers.
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Topics: consumer finance credit impairment losses earnings report net loss