Lufax Holding Ltd. (LU) stock prices were up 5.20% as of the market close on August 9th, 2021, bringing the price per share up to USD$7.48 at the end of the trading day. Subsequent premarket fluctuations have seen the stock rise by 13.10%, bringing it up to USD$8.46.
Total Income Report
Total income for the second quarter of fiscal 2021 were reported at USD$2.297 billion. This is a 17.3% increase from the USD$1.949 billion reported for the prior-year quarter. Net profit was up by 53.2% over the course of Q2 2021 as compared to Q2 2020. The 2021 quarter reported USD$732 million in net profit, up from the USD$476 million reported for the prior-year quarter.
LU Stock Improvements
Outstanding balance of loans drove an increase of 16.8% as of June 30th, 2021, as compared to the prior year numbers. The end of the second quarter of fiscal 2021 reported a total of USD$94 billion. The cumulative number of borrowers was up by 15.7% in Q2 2021 as compared to the 2020 quarter. Q2 2021 reported 15.5 million as of June 30th, 2021, up from 13.4 million as of June 30th, 2020.
Balance of Loans
Q2 2021 also saw LU stock report the disbursement of 77.6% of new loans being done so to small business owners. This is up from the 72.6% reported in the prior-year quarter. Both figures exclude the consumer finance subsidiary, as do reports of the company’s outstanding balance of loans. As of June 30th, 2021, the outstanding balance of loans that were driven by guarantees from credit enhancement partners accounted for 84.3% of the total outstanding balance of loans. This is down from the 94.3% reported as of June 30th, 2020.
Additional Operations
The second quarter of 2021 saw LU stock bear a 16% risk among its newly facilitated loans. This is up from the 4.4% reported in the prior-year quarter. Q2 2021 saw LU stock report its retail credit facilitation revenue take rate based on loan balance coming out to 9.7%. This is up from the 9.4% reported for the second quarter of fiscal 2020.
Future Outlook for LU Stock
Armed with the massive success of its financial reports for Q2 2021, LU stock is poised to capitalize on the snowball effect of the momentum it has generated. The company is keen to leverage the resources at their disposal to continue their trajectory of success. Investors are hopeful for continued increases in shareholder value over the new quarter.
