FinVolution Group reports robust Q1 2024 results By Investing.com

FinVolution Group (ticker: NYSE:), a leading fintech platform, announced in its first-quarter earnings call of 2024 that it has successfully executed its “Local Focus, Global Outlook” strategy. The company reported a 10% year-over-year (YoY) increase in transaction volume in China, reaching RMB 46 billion, and a 4.4% YoY rise in outstanding loan balance, reaching RMB 64 billion. Internationally, transaction volume soared by 41% YoY to RMB 2.21 billion, and outstanding loan balance grew by 34% YoY to RMB 1.27 billion.

Revenue from international business hit RMB 595 million, making up 19% of total revenue. The company’s technology initiatives, including the development of proprietary technology and the use of AI for advertising, have shown progress. With a commitment to financial inclusion, FinVolution has facilitated RMB 13 billion of loans for small business owners and remains dedicated to long-term sustainable growth and stakeholder value creation.

Key Takeaways

• Transaction volume in China grew by 10% YoY, and outstanding loan balance increased by 4.4% YoY.
• International markets saw a 41% increase in transaction volume and a 34% increase in outstanding loan balance YoY.
• Revenue from international business reached RMB 595 million, accounting for 19% of the total revenue.
• The company continues to innovate with technology to improve asset quality and operational efficiency.
• FinVolution provided a positive outlook for the Philippines market, supported by strong GDP growth projections and partnerships with local banks.
• The company’s net income increased by 1% quarter-over-quarter to RMB 532 million.

Company Outlook

• FinVolution forecasts a GDP growth rate of 6% to 7% for the full year 2024.
• The company expects transaction volume for the China market to grow 5% to 10% YoY.
• International market transaction volume is projected to grow 20% to 40% YoY.
• FinVolution aims to maintain a healthy return to shareholders while delivering high-quality growth.

Bearish Highlights

• Credit risk increased in the second half of 2023 and remained stable in Q1 2024, although recovery was slightly below expectations.
• Mixed signals in China’s economy, with a GDP growth of 5.3% in Q1 2024 but contractions in social financing and retail sales.

Bullish Highlights

• The Philippines operations outperformed expectations with a 194% YoY growth in transaction volume.
• Partnerships with SeaBank and Union Bank in…