Qfin Holdings Delivers Resilient Performance Amidst Industry Headwinds, Prioritizes Risk Optimization and Prudent Growth
Qfin Holdings, a leading provider of intelligent digital credit services, today reported a resilient performance in the first quarter of 2026, despite a softening retail credit market.
In a conference call held on May 26, 2026, Ms. Karen Ji, Senior Director of Capital Markets, outlined the company's strategy to prioritize risk optimization and prudent growth amidst industry headwinds. Joining her were Mr. Haisheng Wu, Chief Executive Officer; Mr. Alex Xu, Chief Financial Officer; and Mr. Yan Zheng, Chief Risk Officer.
According to Mr. Wu, Qfin Holdings has upheld compliance, prudence, and high-quality operations as its core principles in a challenging industry environment. Rather than pursuing scale, the company proactively optimized its user and asset mix to strengthen overall health and long-term resilience of its business.
In Q1 2026, total loan facilitation and origination volume on the company's platform declined by approximately 7.5% sequentially to RMB 65 billion, while non-GAAP net income decreased by 11.6% sequentially to approximately RMB 950 million. Non-GAAP EPS on a fully diluted basis decreased by 6.4% to RMB 7.70.
However, the company's efforts to strengthen its risk capabilities across the entire credit life cycle began to translate into tangible results in Q1. The FPD7, a leading risk indicator for new loans, declined by approximately 20% in Q1 compared with Q4 last year, while the C2M2 ratio, which measures the outstanding delinquency rate after 30 days of collection, decreased by roughly 17% sequentially to 0.8%, largely achieving the company's risk optimization targets.
Specifically, these improvements were driven by the following initiatives: in the pre-loan and in-loan stages, Qfin Holdings further strengthened its ability to identify high-quality customers while proactively screening out higher-risk segments; in the post-loan stage, the company optimized its collection strategies during the quarter.
As a result of these efforts, average FPD7 for loans issued between January and March declined by approximately 5% compared to that in December last year, providing a solid safety cushion against potential market volatility. The day one delinquency rate has also shown an overall downward trend, with the Q1 rate decreasing by roughly 7% sequentially.
Qfin Holdings' focus on risk optimization and prudent growth has allowed it to maintain its position as a leading provider of intelligent digital credit services, despite a softening retail credit market. The company's commitment to delivering high-quality operations and prioritizing customer needs has resulted in improved performance indicators, which are expected to continue into the second quarter.
