RMB82 million: Lufax Holding Ltd's (NYSE: LU) second-quarter net loss, 86.2% below the RMB594 million reported a year earlier. The math traces directly to taxes, not operations. Pretax profit fell to RMB30 million from RMB266 million, yet income-tax expense collapsed from RMB861 million to RMB112 million; the full spread of that tax shift of RMB749 million more than accounts for the RMB512 million net-loss improvement.
| Component | Q2 2026 (reported) | Q2 2025 (reported) |
|---|---|---|
| Pretax profit | RMB30M | RMB266M |
| Income-tax expense | RMB112M | RMB861M |
| Net loss | RMB82M | RMB594M |
Total income fell 15.5% YoY to RMB6.23 billion. Total expenses declined 12.7%. Stripping out credit impairments, finance costs and other gains or losses, the operating cost base contracted 27.5%, the cleaner read on how far management has pulled the expense structure. Management disclosed that credit costs remained elevated. Impairment losses fell only 3.2% on an overall loan book that itself contracted 13.5% to RMB167.3 billion at June end.
Consumer finance and credit quality
Consumer-finance originations rose 27.6% to RMB36.9 billion, carrying total new loans enabled up 4.6% to RMB51.1 billion. The outstanding consumer-finance balance grew 19.9% to RMB65.4 billion. That segment is the only source of balance-sheet expansion in a portfolio otherwise in retreat.
Sequential credit indicators were mixed. The consumer-finance nonperforming-loan ratio improved to 1.3% from 1.4%, and the DPD 30+ delinquency rate for loans excluding consumer finance fell to 5.8% from 6.1%. The C-M3 flow rate on that non-consumer segment declined to 1.0% from 1.2%. The DPD 90+ rate on the same cohort moved the other way, rising to 3.7% from 3.4%.
Lufax's risk-bearing share of the outstanding portfolio increased to 93.2% from 83.7%. Because the overall book shrank, the approximate absolute risk-bearing balance fell from RMB161.9 billion to RMB155.9 billion. The company is now carrying a larger proportion of risk on a smaller base.
The first-half picture is harder to frame. The six-month net loss widened 33.7% to RMB694 million, and Lufax declined to declare a semiannual dividend on that basis. Hedge fund ownership tracked by Insider Monkey's database stood at five funds at the end of the first quarter of 2026, down from eight in the preceding quarter; those positions predate the second-quarter results.