Lufax (LU) Narrowed Its Loss 86%. Was the Improvement Mostly Tax-Driven?
August 22, 2026 - 12:26
Pretax profit actually fell to RMB30 million from RMB266 million a year earlier. The tax bill swung from RMB861 million down to RMB112 million, which accounted for most of the narrowing in the net loss. Total income also slipped 15.5 percent to RMB6.23 billion, reflecting continued pressure on the company's core lending and wealth management businesses.
The company has been navigating a tough environment for consumer finance in China, with tighter regulations and cautious borrower demand. While cutting tax liabilities helped the bottom line this quarter, the underlying revenue trend remains weak. Investors will likely focus on whether Lufax can stabilize income growth and improve loan quality in the coming quarters, rather than relying on one-off tax effects to boost reported results.
MORE NEWS
August 21, 2026 - 18:52
The six year tax free landlord rule that has been supercharged by the budget: 'In plain sight'When the rules of the game change, there are always some quiet winners. The recent budget has quietly supercharged a little-known tax break for property owners, and it is sitting right in plain...
August 21, 2026 - 01:50
Working Capital Is Becoming a Priced Portfolio for CFOsThe next frontier in working capital management is no longer about squeezing another day out of receivables or stretching payables to the limit. Instead, finance chiefs are treating cash tied up in...
August 20, 2026 - 22:42
The Real Cost of Investing: Why Fees Matter More Than You ThinkIn a financial world that can sometimes feel opaque, there are fees and costs investors may not fully understand. While the promise of market returns often takes center stage, the silent drag of...
August 20, 2026 - 06:39
Singapore-headquartered StoneBench's new research Fragmentation Finance maps how geopolitics is reshaping Asian financeA new research initiative from Singapore-based advisory firm StoneBench is tackling a question that keeps finance executives up at night: how do you move money across borders when the rules keep...