LexinFintech Holdings (NASDAQ: LX) would probably like to forget 2020. The COVID-19 pandemic unleashed havoc across the global economy, and there was simply no escape for players in the financial sector, including this fintech that caters to the financial needs of young professionals in China.
By the first quarter of 2020, LexinFintech’s provisions for credit losses had surged. The company slipped into the red, and investors got nervous. As a result, LexinFintech stock plunged nearly 60% from 52-week highs. The stock has since made up a lot of lost ground, but it still trades 25% below pre-COVID levels.
But there are fresh signs that the fintech is in full recovery mode. LexinFintech’s latest earnings report, released late last week, offers up new evidence that things are better.