360 DigiTech, Inc. Q1 2026 Earnings Recap

Qfin Holdings shares surged 22.1% after reporting better-than-expected risk management progress and operational efficiencies amid a challenging consumer credit environment, reassuring investors despite ongoing volume declines.

Key Takeaways

• Total loan facilitation and origination volume declined approximately 7.5% sequentially to RMB 65 billion, reflecting continued softness in consumer credit demand.
• Non-GAAP net income decreased 11.6% sequentially to about RMB 950 million; non-GAAP diluted EPADS fell 6.4% to RMB 7.70.
• Significant risk metric improvements: FPD 7 declined ~20% sequentially, and the C2M2 delinquency ratio fell 17% sequentially to 0.8%.
• Enhanced credit decisioning and collection scorecards led to a 1.8 percentage point sequential increase in the 30-day collection rate, reaching 85.8%.
• Funding costs improved with a 10 basis point sequential reduction, supported by a 16% increase in ABS issuance to RMB 2.9 billion and optimized funding mix.