X Financial (NYSE:XYF) reported lower second-quarter revenue and loan origination volumes as it maintained a conservative operating approach focused on credit quality, liquidity and balance-sheet strength.
Management said tighter underwriting and expanded collections efforts contributed to sequential improvement in delinquency measures, though credit metrics remained substantially weaker than a year earlier
The company facilitated and originated RMB 11.63 billion in loans during the quarter ended June 30, down 70.2% from a year earlier and 20.5% from the first quarter. President Kent Li said the pace of contraction moderated from the prior quarter as the company concentrated originations in internally operated channels with stronger borrower quality and unit economics. “Conditions remain challenging, and we continue to place credit quality, liquidity, and the balance sheet strength ahead of near-term origination volume,” Li said. Loan Volumes Decline as Company Tightens Underwriting X Financial served about 720,258 active borrowers and facilitated approximately 0.91 million loans during the quarter.
Active borrowers declined 74.8% year over year and 24.7% sequentially. Outstanding loan balance fell to RMB 24.97 billion at quarter-end, down 61.5% from the comparable 2025 period and 29.2% from the end of the first quarter. Average loan amount per transaction rose to RMB 12,712, up 8.3% sequentially and 21.3% from a year earlier.