China's Yiren Digital Q4 revenue falls on lower loan volumes, suspends dividend

Reuters03-19
China's Yiren Digital Q4 revenue falls on lower loan volumes, suspends dividend

Overview

  • China fintech firm's Q4 revenue fell 34% yr/yr amid lower loan volumes and fee rates

  • Company posted Q4 net loss and adjusted EBITDA loss due to upfront provisions for risk-taking assets

  • Dividend suspended for second half of 2025 to maintain reserves and fund technology investment

Outlook

  • Yiren Digital plans to deepen its AI-driven operating model and accelerate business transformation in 2026

  • Company temporarily suspends cash dividend for H2 2025 to maintain reserves for credit fluctuations and tech investments

  • Company expects to navigate ongoing industry-wide credit risk fluctuations with disciplined risk management

Result Drivers

  • CREDIT POLICY TIGHTENING - Co said lower loan volumes and number of borrowers were due to strategic tightening of credit policy amid elevated credit risk

  • FEE RATE AND VOLUME PRESSURE - Co attributed revenue decline in credit solutions to lower service fee rates under new regulations and a scale-back in loan facilitation volume

  • HIGHER RISK PROVISIONS - Co said net loss was mainly due to substantial upfront provisions for risk-taking model assets and a higher-risk asset profile

Company press release: ID:nPn3DNrz0a

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

RMB 957.63 mln

Q4 Net Income

-RMB 882.16 mln

Q4 Adjusted EBITDA

-RMB 1.02 bln

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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