X Financial’s 2025 Loan Origination Up 24.5% While Q4 Margins Collapse to 1.4%
X Financial’s 2025 loan originations jumped 24.5% to propel assets to RMB14.667 billion, supported by RMB2.13 billion in restricted cash, tighter risk controls and ongoing share repurchases. In Q4, originations plunged 29.5% YoY, operating margin shrank to 1.4% and 31–60 day delinquency rose to 2.9% under a 24% borrowing cost cap.
1. Full-Year Growth
X Financial increased loan originations by 24.5% in 2025 versus 2024, reflecting focus on strengthening internal platforms, reducing reliance on external traffic and enhancing operational efficiency. Robust risk controls and tighter underwriting underpinned sustainable growth across the lending portfolio.
2. Q4 Decline in Originations and Margins
In Q4 2025, loan originations fell 29.5% year-on-year and 32.3% sequentially as the company moderated activity to prioritize quality. Total net revenue dropped 14.1% YoY and operating margin collapsed to 1.4% from 18.5% in Q3, driven by elevated credit provisions and rising delinquencies.
3. Regulatory Challenges
New supervisory requirements, including a 24% annual ceiling on borrowing costs under Notice 9, introduce uncertainty into interest income and could pressure future profitability. Management warned that stricter cost caps may lead to operating losses if market rates remain constrained.
4. Balance Sheet Strength and Repurchases
X Financial ended 2025 with RMB14.667 billion in assets and RMB2.13 billion in restricted cash, maintaining a solid liquidity buffer. Continued share repurchases signal confidence in long-term growth, while enhanced risk controls aim to preserve portfolio health amidst credit headwinds.