Lufax Third-Quarter Net Loss Widens to 1.49 Billion Yuan as Credit Costs Rise

Lufax Holding reported a third-quarter net loss of 1.494 billion yuan ($223 million) for the three months ended September 30, 2026, compared with a loss of 380 million yuan a year earlier. The China-focused financial services company released the unaudited figures on October 27 in the United States, ahead of its scheduled October 28 results discussion in Asia.

Total income fell 4.6% year over year to 6.18 billion yuan. The company said higher credit impairment losses and tax expenses were the main drivers of the wider deficit. Credit impairment charges increased 10.3% to 4.511 billion yuan, while income tax expense rose to 773 million yuan from 74 million yuan a year earlier.

Lufax attributed part of the tax increase to a reduction in deferred tax assets and additional withholding taxes related to dividend distributions from domestic subsidiaries. Those accounting and tax items contributed to the reported loss and should not be confused with a comparable rise in day-to-day operating expenses. The company said expenses excluding credit impairments, finance costs and other gains or losses declined 13.4% from a year earlier.

New loans enabled reached 58.3 billion yuan, an increase of 2.5%. Within that total, new consumer-finance loans increased 25.2% to 39.7 billion yuan. At the end of September, outstanding enabled loans totalled 167.1 billion yuan, down 11.9% from the previous year, showing that higher quarterly originations did not translate into growth in the overall outstanding portfolio.

The company reported that its 30-day-plus delinquency ratio, excluding the consumer-finance subsidiary and certain other products, improved to 5.5% from 5.8% at the end of June. Its 90-day-plus ratio on the same basis fell to 3.2% from 3.7%. However, a separate measure estimating the transition of current loans into non-performing status over three months rose to 1.2% from 1.0%, indicating that not all credit-quality indicators improved.

Lufax also disclosed changes to the composition of its internal control improvement committee effective October 28. The company operates in consumer finance and small-business lending and has shares traded in Hong Kong and the United States. Its latest figures show continued growth in selected lending products alongside pressure from credit costs and tax adjustments, rather than an across-the-board improvement in profitability.