(Yicai Global) Aug. 10 -- Profit at Lufax Holding, a Chinese financial technology services provider, jumped 53 percent in the second quarter, driven by a cut in the effective tax rate and by its net interest and guaranteed incomes.

Net profit was CNY4.73 billion (USD730 million) in the three months ended June 30, up from CNY3.09 billion a year earlier, the company said in an earnings report released yesterday.

Lufax’s effective tax rate fell to 26 percent from 29 percent in the second quarter of 2020, while net interest income doubled to CNY3.23 billion, mainly as a result of increased usage of trust funding channels that are consolidated by the firm. Its guaranteed income surged nine-fold to CNY891 million (USD138 million), primarily due to an increase in the loans for which Lufax bears credit risk.

Shares of Lufax [NYSE: LU] rose 5.1 percent to close at USD7.48 apiece in New York yesterday.

Total income rose 17.3 percent to CNY14.83 billion, the report said. Lufax had expected that to increase 18 percent to 19 percent to between CNY31 billion and CNY31.3 billion, and net profit to expand 32 percent to 36 percent to between CNY6.6 billion and CNY6.8 billion.

For the first half, net profit rose 33 percent and total income by 17 percent.

“While we are cognizant of the challenges ahead, we are also confident in our own ability to deftly navigate through changing market dynamics and lay a unique path to long-term and sustainable success,” said Chairman Ji Guangheng.

Editor: Peter Thomas