Listed Loan Facilitators Post Weaker Q2 Earnings as Delinquencies Improve

Listed loan facilitation firms continued to see revenue and net profit decline in the second quarter of 2026, with Jiayin Group and Lexin both posting losses, according to Jiemian News. Jiayin Group reported a net loss of 184 million yuan, while Qifu Technology, Xinye Technology, Lexin and Xiaoying Technology all posted sharply lower profit than a year earlier. The downturn came after China's National Financial Regulatory Administration issued a notice in April 2025 tightening oversight of internet loan facilitation by commercial banks, which took effect on October 1, 2025. The rule requires related fees such as credit enhancement charges to be included in the calculation of total financing costs, with business to be conducted under the judicial 24% annual cap. Jiemian News reported that tighter funding supply, stricter channel access and weaker loan origination weighed on earnings. Asset quality improved for some firms. Of the seven listed loan facilitators that disclosed 90-day-plus delinquency rates, four reported lower ratios at the end of June than at the end of March. Xinye Technology, Xiaoying Technology, Qifu Technology and Jiayin Group reported 90-day-plus delinquency rates of 2.1%, 9.09%, 2.83% and 2.21%, down 1.01, 0.86, 0.67 and 0.04 percentage points from the first quarter, while Lexin, Lufax and WeCredit reported 3.6%, 3.7% and 8.64%, up 0.1, 0.3 and 0.53 percentage points. Several companies struck a cautious tone for the third quarter. Xinye Technology CEO Li Tiezheng said the company would remain prudent in credit deployment rather than chase higher-risk volume. Qifu Technology said it expects third-quarter net profit and adjusted net profit to fall 67% to 73% year on year. Lexin said it expects total loan origination in the third quarter to drop sharply from the previous quarter and that it may post a net loss.