After the announcement of its most recent financial results, the stock price of FinVolution Group (NYSE: FINV) saw a significant increase. The most recent check of FINV shares this morning showed a notable 15.79% rise, trading at $10.56. Strong investor trust in the business’s performance and planned expansion goals is reflected in this increasing trend.
Globalization Drives Revenue Increase
For the first time, FinVolution’s full-year transaction volume in foreign markets was above RMB10.1 billion. Additionally, FINV disclosed an outstanding loan amount of RMB1.7 billion, showing a remarkable 27.8% and 30.8% rise, respectively, from the previous year. These achievements highlight the business’s effective foreign expansion plan and capacity to seize fresh market prospects.
International revenue contributions increased by 22.8% year over year to RMB739.3 million in the fourth quarter, which accounted for 21.4% of overall revenue. The strong performance in international markets demonstrates how well FinVolution’s diversification initiatives are working, solidifying its standing as a top financial technology platform.
Financial Metrics Reflect Strong Business Performance
For the fourth quarter, FinVolution recorded net revenues of RMB3,456.7 million (US$473.6 million), a 7.2% increase over the same time the year before. From RMB36.4 million in Q4 2023 to RMB95.1 million (US$13.0 million), the provision for accounts receivable and contract assets increased. Higher transaction loan volumes in global markets were primarily responsible for this increase.
In contrast, the provision for loans receivable decreased from RMB107.6 million in Q4 2023 to RMB64.3 million (US$8.8 million). A decline in loan volume and outstanding loan amounts on foreign on-balance sheet loans was the main cause of this drop. In comparison to RMB528.8 million during the same period in 2023, FINV’s net profit for the quarter increased significantly to RMB680.8 million (US$93.3 million).
Dedicated to Providing Shareholder Value
As part of its plan to provide long-term value to shareholders, FinVolution invested over US$160.4 million in capital returns in 2024. A total payout ratio of around 49.1% was achieved by including US$90.2 million for share repurchases and US$70.2 million for dividend payouts. Through a balanced strategy of share buybacks and dividend payments, FINV has continuously put shareholder returns first since 2018, demonstrating its dedication to long-term value development.
