Cash flow generation is negative, with operating cash flow of -$287.9M in Q2 2026 failing to cover net losses, while the cash and bank balance has shrunk 62.6% from $51.3B to $19.2B since Q1 2023.
Lufax Holding Ltd (LU) cash flow statement — 8-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 |
|---|
| Cash from Operations | 12.72T | 12.79B | 15.03B | 4.46B | 4.99B | 7.12B | 2.19B | -1.45B | 2.67B |
| Operating CF Growth % | 511.18% | -14.92% | 237.36% | -10.67% | -29.96% | 224.89% | 250.92% | -154.3% | - |
| Net Income | -2.65B | -2.04B | 886.87M | 13.01B | 23.4B | 17.91B | 19.43B | 18.65B | 8.36B |
| Depreciation & Amortization | 623.74B | 266.14M | 606.15M | 771.14M | 824.63M | 862.71M | 817.26M | 951.46M | 869.73M |
| Deferred Taxes | 0 | 0 | 0 | 0 | -2.53B | -2.22B | -7.17B | 0 | 0 |
| Other Non-Cash Items | 4.51T | 10.11B | 4.38B | 4.26B | 1.81B | 3.14B | 6.42B | -2.48B | 2.03B |
| Working Capital Changes | 6.04T | 4.45B | 9.2B | -13.64B | -18.65B | -12.73B | -17.26B | -18.7B | -8.8B |
| Cash from Investing | -3.48T | -17.19B | -5.94B | 8.45B | 313.82M | -15B | -11.01B | 3.49B | -1.63B |
| Purchase of Investments | -71.55T | -81.87B | -73.92B | -97.73B | -128.59B | -169.46B | -128.57B | -132.11B | -113.87B |
| Sale/Maturity of Investments | 67.27T | 64.72B | 67.03B | 99.03B | 132.43B | 153.46B | 118.65B | 134.99B | 112.22B |
| Net Investment Activity | -4.28T | -17.15B | -6.89B | 1.3B | 3.84B | -16B | -9.92B | 2.88B | -1.64B |
| Acquisitions | -125K | -2.51M | 0 | 0 | 0 | -40.32M | -1.72B | 77.5M | -2.52M |
| Other Investing | 851.34B | 0 | 1B | 7.27B | -3.37B | 1.24B | 810.14M | 805.96M | 483.97M |
| Cash from Financing | -20.26T | 3.74B | -20.55B | -9.92B | -2.45B | 24.87B | -2.61B | -2.01B | 6.51B |
| Dividends Paid | -1.44T | 0 | -1.44B | -7.72B | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -6.44B | 0 | 0 | 0 | 0 |
| Stock Issued | 252M | 125.48K | 0 | 15.94M | 22.33M | 18.91B | 677.77M | 9.23B | 351.2M |
| Net Stock Activity | 252M | 125.48K | 0 | 15.94M | -6.42B | 18.91B | 677.77M | 9.23B | 351.2M |
| Debt Issuance (Net) | -1000K | 1000K | -1000K | -1000K | 1000K | 1000K | -1000K | -1000K | 1000K |
| Other Financing | -883.5B | -200.74M | -855.65M | -1.12B | -828.99M | -1.15B | -499.49M | -923.56M | -285.05M |
| Net Change in Cash | -11.03T | -1.04B | -11.06B | 3.04B | 2.71B | 16.47B | -11.26B | -52.11M | 7.5B |
| Exchange Rate Effect | -20.48B | -380.25M | 404.68M | 57.02M | -142.61M | -517.87M | 169.71M | -85.75M | -46.95M |
| Cash at Beginning | 0 | 42.19B | 29.54B | 26.5B | 23.79B | 7.31B | 18.58B | 18.63B | 11.12B |
| Cash at End | 0 | 41.15B | 18.48B | 29.54B | 26.5B | 23.79B | 7.31B | 18.58B | 18.63B |
| Interest Paid | 1.53T | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Income Taxes Paid | -2.75T | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | 12.67T | 12.75B | 14.98B | 4.33B | 4.83B | 6.91B | 2.01B | -1.72B | 2.21B |
| FCF Growth % | 96052.9% | -14.89% | 245.81% | -10.38% | -30.09% | 243.99% | 216.72% | -178.09% | - |
Quick answers to the most common questions about buying LU stock.
Lufax Holding Ltd (LU) generated $12.79B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Lufax Holding Ltd (LU) generated $12.75B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Lufax Holding Ltd (LU) spent $35.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Cash burn from credit losses
Negative Earnings Erase Capital Generation
Lufax's persistent net losses, including a $447.9M loss in Q2 2026, have completely eliminated its ability to generate capital organically, forcing reliance on its existing cash buffer to absorb ongoing credit impairments.
The company's negative operating cash flow of $287.9M in Q2 2026, coupled with a negative OCF/NI ratio of 0.64, indicates that cash is being consumed faster than the accounting loss suggests, likely due to working capital movements related to loan originations and provisions. This pattern of cash consumption, evident since Q4 2024, means the firm is actively depleting its capital base rather than building it, a critical concern for any institution transitioning to a risk-bearing model.
Loan Book Contraction Dominates Cash Flows
The absence of significant investment securities activity in recent quarters, as reported in financial statements, suggests the primary cash flow dynamic is the managed runoff of the loan portfolio, which is the core driver of operating cash flows.
With zero purchases or sales of investment securities in most periods, the company's cash flow statement is almost entirely driven by loan originations, repayments, and provisions. The large negative loan loss provisions of $883.7M in Q2 2026 represent a significant non-cash charge that directly reduces reported operating cash flow, highlighting how credit quality deterioration is the dominant force in the company's cash generation profile.
Dividend Payouts Amidst Cash Burn
Despite a net loss of $665.2M in Q4 2025, Lufax paid a substantial $1.4B dividend, a move that appears to be a one-time capital return rather than a sustainable practice given the ongoing operational cash burn.
The Q4 2025 dividend payment is anomalous when viewed against the backdrop of negative earnings and operating cash flow, suggesting it may be a special distribution funded from the balance sheet rather than from current earnings. This action, combined with the lack of share buybacks, indicates management is prioritizing returning capital to shareholders over reinvesting in the business, which warrants scrutiny given the company's loss-making status and the capital-intensive nature of its new risk-bearing model.
Provisions Consistently Outpace Operating Cash
Credit impairment provisions have consistently been multiples of the company's net income or operating cash flow, such as the $5.4B provision in Q3 2025 against a $3.5B operating cash inflow, indicating severe asset quality stress.
The scale of provisions relative to cash flow suggests that the company is setting aside capital for expected losses that far exceed its current ability to generate cash from operations. This dynamic implies that the risk-bearing transition is creating a significant drag on liquidity, as cash that could otherwise be used for operations or growth is being earmarked to cover future credit events.
Cash Pile May Mask Encumbered Assets
The reported cash position of $41.1B may be significantly overstated as a source of discretionary capital, as a substantial portion is likely restricted to satisfy regulatory requirements or guarantee obligations tied to the risk-bearing loan portfolio.
The negative net interest income and massive provisions suggest that the company's earning assets are not generating sufficient cash to cover their own funding costs and expected losses. This implies that the large cash balance is not a free resource but is instead a necessary buffer to support the balance sheet, limiting its availability to absorb further losses or fund a strategic pivot. Investors should monitor the composition of cash and cash equivalents for disclosures on restricted or pledged amounts.