Yiren Digital Ltd. (NYSE:YRD) reported a fourth-quarter loss and weaker-than-expected revenue, while announcing a temporary suspension of its dividend as the Chinese fintech firm responds to rising credit risks in the consumer lending market. Shares declined about 2% following the announcement.
The company posted a loss of RMB10.07 per American Depositary Share in the fourth quarter, compared with earnings of RMB3.82 per ADS during the same period a year earlier. Revenue dropped 34% year over year to RMB957.6 million, well below the RMB1.45 billion recorded in the prior-year quarter.
Yiren Digital also said it will temporarily suspend its semi-annual cash dividend for the second half of 2025 in order to preserve capital for potential credit volatility and continued technology investment.
Loan activity declined during the quarter as the company tightened lending standards in response to broader industry credit risk concerns. Total loans facilitated fell 22% year over year to RMB12.0 billion, while the number of borrowers served dropped 52% to 742,444.
Revenue from the company’s credit solutions segment, which represents 87% of overall revenue, decreased 21% year over year to RMB832.7 million.
The company reported a net loss of RMB882.2 million for the quarter, compared with net income of RMB331.4 million in the fourth quarter of 2024. The decline was largely driven by significantly higher provisions tied to risk-bearing assets, increased expected loss rates and lower fee structures introduced under new regulatory rules. Provisions for contingent liabilities surged to RMB1.11 billion from RMB250.7 million a year earlier.
“Our early efforts to strengthen credit standards and proactively build financial buffers ahead of the industry downturn have allowed us to navigate a challenging market environment while maintaining stable operations,” said Ning Tang, Chairman and CEO.
For the full year 2025, Yiren Digital reported net income of RMB40.5 million, a sharp decline from RMB1.58 billion in 2024, on total revenue of RMB5.72 billion.