Net interest income has oscillated between extremes, from $2.9B in 2024Q3 to negative readings in 2025Q1 and 2026Q1 before recovering to $3.9B in 2026Q3, suggesting unstable core spread economics that warrant further investigation.
Lufax Holding Ltd (LU) annual income statement — 9-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 |
|---|
| Net Interest Income | 11.16B | 14.29B | 13.27B | 13.94B | 21.05B | 26.91B | 12.17B | 4.08B | 11.29B | 15.66B |
| NII Growth % | 217.88% | 7.64% | -4.77% | -33.78% | -21.81% | 121.14% | 198.07% | -63.83% | -27.94% | - |
| Net Interest Margin % | 5.38% | 6.17% | 6.13% | 5.37% | 5.27% | 6.1% | 4.12% | 2.44% | 8.39% | 7.24% |
| Interest Income | 15.09B | 18.5B | 18.61B | 23.74B | 36.51B | 29.1B | 14.31B | 6.33B | 12.58B | 17.33B |
| Interest Expense | 3.81B | 4.21B | 5.34B | 9.8B | 15.46B | 2.19B | 2.14B | 2.25B | 1.3B | 1.66B |
| Loan Loss Provision | 11.38B | 18.12B | 13.29B | 13.76B | 18.7B | 18.06B | 11.39B | 6.96B | 11.28B | 12.26B |
| Non-Interest Income | 12.95B | 11B | 7.34B | 16.49B | 36.4B | 57B | 50.03B | 49.79B | 40.38B | 23.15B |
| Non-Interest Income % | 53.71% | 43.51% | 35.61% | 54.2% | 63.37% | 67.92% | 80.43% | 92.42% | 78.15% | 59.64% |
| Total Net Revenue | 24.12B | 25.29B | 20.61B | 30.43B | 57.45B | 83.91B | 62.2B | 53.87B | 51.67B | 38.81B |
| Revenue Growth % | -9.99% | 22.68% | -32.27% | -47.03% | -31.53% | 34.9% | 15.46% | 4.27% | 33.12% | - |
| Non-Interest Expense | 14.6B | 7.8B | 9.56B | 14.95B | 24.65B | 36.09B | 27.46B | 22.21B | 17.37B | 15.61B |
| Efficiency Ratio | 60.55% | 30.86% | 46.37% | 49.14% | 42.91% | 43.01% | 44.15% | 41.22% | 33.62% | 40.21% |
| Operating Income | -1.75B | -632.11M | -2.23B | 1.72B | 14.1B | 29.77B | 23.35B | 24.7B | 23.02B | 10.95B |
| Operating Margin % | -7.25% | -2.5% | -10.84% | 5.64% | 24.55% | 35.48% | 37.54% | 45.86% | 44.55% | 28.21% |
| Operating Income Growth % | - | 71.7% | -230.02% | -87.82% | -52.63% | 27.5% | -5.49% | 7.34% | 110.18% | - |
| Pretax Income | -1.79B | -632.11M | -2.23B | 1.72B | 14.1B | 28.2B | 20.12B | 22.04B | 22.09B | 9.64B |
| Pretax Margin % | -7.44% | -2.5% | -10.84% | 5.64% | 24.55% | 33.61% | 32.35% | 40.9% | 42.75% | 24.85% |
| Income Tax | 955.65M | 1.24B | 1.64B | 687.1M | 4.9B | 8.06B | 6.33B | 6.94B | 6.01B | 2.69B |
| Effective Tax Rate % | -53.28% | -196.26% | -73.36% | 40% | 34.77% | 28.59% | 31.45% | 31.47% | 27.2% | 27.94% |
| Net Income | -3.12B | -2.3B | -4.16B | 875.54M | 9.1B | 20.25B | 13.88B | 15.12B | 16.13B | 6.88B |
| Net Margin % | -12.94% | -9.08% | -20.18% | 2.88% | 15.85% | 24.14% | 22.32% | 28.06% | 31.22% | 17.72% |
| Net Income Growth % | 4.34% | 44.82% | -575.02% | -90.38% | -55.05% | 45.89% | -8.17% | -6.29% | 134.52% | - |
| Net Income (Continuing) | -2.75B | -1.87B | -3.87B | 1.03B | 9.2B | 20.14B | 13.79B | 15.1B | 16.08B | 6.95B |
| EPS (Diluted) | -720.05 | -26.40 | -59.60 | 16.60 | 176.40 | 322.40 | 249.60 | 245.40 | 261.80 | 111.60 |
| EPS Growth % | -1212.46% | 55.7% | -459.04% | -90.59% | -45.29% | 29.17% | 1.71% | -6.26% | 134.59% | - |
| EPS (Basic) | - | -26.40 | -59.60 | 16.60 | 176.60 | 342.80 | 251.40 | 245.40 | 261.80 | 111.60 |
| Diluted Shares Outstanding | 4.33M | 86.67M | 69.76M | 57.31M | 57.38M | 67.99M | 56.3M | 61.61M | 61.61M | 61.61M |
Quick answers to the most common questions about buying LU stock.
For fiscal year 2025, Lufax Holding Ltd (LU) reported total revenue of $25.29B. This represents a 34.8% decline compared to $38.81B in 2017.
Lufax Holding Ltd (LU) reported a net loss of $2.30B for the fiscal year ending 2025.
Lufax Holding Ltd (LU) reported an operating income of $-632.1M, resulting in an operating profit margin of -2.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Lufax Holding Ltd (LU) generated $7.17B in gross profit for the year, representing a gross profit margin of 28.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Credit costs overwhelming revenue
Net Interest Income Swings Between Extremes
According to recent SEC filings, Lufax's net interest income oscillated from $2.9B in 2024Q3 to negative readings in 2025Q1 and 2026Q1, then recovered to $3.9B in 2026Q3, signaling unstable core spread economics that may reflect timing effects rather than a durable earnings base.
The quarterly series suggests NII is highly sensitive to the timing of loan-related interest recognition and funding costs rather than to a steady recurring base. The negative quarters likely reflect interest expense or accounting effects outpacing interest income, which warrants further investigation into the underlying drivers. Investors should monitor whether the 2026Q3 recovery is sustainable or simply a reversal of temporary items.
Provisions Absorbing Most Top-Line Gains
As reported in financial statements, provision expense reached $4.8B in 2026Q2 against total revenue of $6.2B, implying credit costs absorbed most of the top line and contributed directly to the period's loss pattern.
Provision expense has repeatedly approached or exceeded the scale of revenue, which may indicate asset quality deterioration in the SBO loan book and a shift toward greater on-balance-sheet credit exposure. This pattern appears consistent with the company's transition to a risk-bearing model and suggests earnings volatility may persist until provisioning stabilizes. Investors should monitor provision coverage and delinquency trends for signs of normalization.
Efficiency Ratio Signals Weak Operating Leverage
Based on Lufax's reported quarterly figures, the efficiency ratio ranged from 21.6% to over 100% across recent quarters, indicating operating costs frequently consumed most or all of revenue with limited consistency in cost control.
Efficiency ratios above 90% in several periods imply a cost base poorly matched to revenue volatility, consistent with a high fixed-cost offline sales model. The low 21.6% reading in 2026Q2 appears to reflect a provision-distorted revenue or cost mix rather than durable efficiency. Operating leverage therefore looks unreliable, and investors should treat single-quarter improvements with caution.
Fee Income Dependence Fluctuates Sharply
Based on Lufax's reported figures, non-interest income represented over 100% of total revenue in 2026Q1 and 2025Q1, underscoring how heavily reported revenue depends on fee and facilitation income rather than stable interest earnings.
Fee-driven revenue appears transactional and tied to loan facilitation volumes, which the roughly 32.5% year-over-year revenue decline suggests are contracting. Such dependence may indicate higher cyclicality and exposure to regulatory or credit-cycle shifts. Investors should monitor whether fee income quality improves as the business mix evolves.
Reported Recovery May Not Hold
As reported in financial statements, the 2026Q3 rebound to $3.9B NII and a 1.9% NIM may not be durable, since prior quarters show similar spikes reversing into negative net income, with net loss of $1.5B in the latest quarter.
The strongest challenge to the earnings base is that the apparent improvement in net interest income and margin coincides with a $1.5B net loss and operating loss of $721.1M, suggesting the headline recovery does not translate into bottom-line profitability. Provisions and the shift to a risk-bearing model may continue to dominate results, which could invalidate any normalization thesis. Investors should monitor whether provision levels fall meaningfully before treating the recent NII recovery as evidence of stabilization.