Shares of the Chinese digital financial services company LexinFintech Holdings (LX -7.82%) rose about 11.5% today after the company reported earnings results for the second quarter of the year earlier this morning.
LexinFintech reported diluted earnings of $0.13 per American depositary share on total operating revenue of more than $360 million.
"We are pleased to see that our second quarter 2022 performance has been improved compared with the previous one. Operating revenue increased by 40.9% quarter over quarter while loan origination reached RMB49.1 billion," LexinFintech's CEO, Jay Wenjie Xiao, said in an earnings statement.
He added, "We are committed to strengthening our unique ecosystem that is centered around financial institution partners and committed consumers that we have been serving for years, as well as our technology-driven risk assessment capabilities."
In the second quarter, the company increased its total registered users to 178 million, representing a 23.5% increase year over year. LexinFintech has also now originated close to $111 billion of total loans, which is up 34% year over year.
On the company's second-quarter earnings call, CFO Sunny Sun said that "we expect that our profit will continue to follow an upward trend in the second half of this year." The company also expects to originate about $7.8 billion of loans in the third quarter, which is more than what it originated in Q2.
While regulation is always a threat when talking about Chinese stocks, I thought LexinFintech had a nice rebound quarter, growing users, revenue, and generating a profit. The company looks well positioned to improve on these results going forward.