Noah Holdings Ltd ((NOAH)) has held its Q3 earnings call. Read on for the main highlights of the call.
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In the latest earnings call, Noah Holdings Ltd expressed a balanced sentiment, highlighting significant improvements in profitability and strategic growth in investment products and global operations. These positive trends were tempered by declines in insurance revenue and overall revenue, resulting in a cautiously optimistic outlook.
Significant Improvement in Profitability
Noah Holdings Ltd reported a remarkable increase in non-GAAP net income, which rose by over 50% year-on-year, reaching RMB 229 million for the third quarter. This substantial growth reflects a strong bottom line performance, underscoring the company’s effective cost management and operational efficiency.
Growth in Investment Products
The company saw a notable improvement in its revenue mix, with investment products accounting for 28% of new revenue, up from 18% a year ago. This shift indicates a strategic focus on diversifying revenue streams and enhancing product offerings to meet evolving client demands.
Overseas AUM and AUA Growth
Noah Holdings Ltd reported growth in its overseas assets under management (AUM) and assets under advisement (AUA), with AUA reaching USD 9.3 billion, up 6.8% year-on-year, and AUM at USD 5.9 billion, up 5.3% year-on-year. This growth highlights the company’s successful expansion efforts in international markets.
Expansion of Global Operations
The establishment of four overseas booking centers and the acquisition of a U.S. broker-dealer license mark significant milestones in Noah Holdings Ltd’s global operational expansion. These developments are expected to enhance the company’s international presence and client service capabilities.
AI Implementation
Noah Holdings Ltd has launched AI RM systems and AI-driven operations, aimed at enhancing client engagement and operational efficiency. This technological advancement is part of the company’s strategy to leverage AI for improved service delivery and competitive advantage.
Revenue Decline in Insurance Segments
The company experienced a decline in net revenues from overseas wealth management, which decreased by 22.7% year-on-year due to a drop in insurance product distribution. Domestic insurance revenues also fell significantly by 44.8% year-on-year, reflecting challenges in the insurance segment.
Overall Revenue Decline
Total net revenues for the quarter were RMB 633 million, reflecting a 7.4% year-over-year decline. This decrease was primarily due to lower insurance income amid intensified competition, highlighting the need for strategic adjustments in this area.
Forward-Looking Guidance
Looking ahead, Noah Holdings Ltd provided comprehensive guidance, emphasizing its strategic focus on strengthening core capabilities in investment product selection and expanding AI capabilities. The company reported a cumulative non-GAAP net income of RMB 587 million for the first three quarters of 2025. Despite a slight year-on-year decline in net revenues, sequential growth was recorded for the second consecutive quarter. The company also highlighted significant transaction value increases in both U.S. dollar and RMB-denominated private secondary products, and a 13.1% year-on-year rise in active client numbers. With a strong balance sheet and no interest-bearing liabilities, Noah Holdings Ltd is well-positioned for future growth and technology investments.
In conclusion, Noah Holdings Ltd’s latest earnings call presented a balanced outlook, with significant profitability improvements and strategic growth in investment products and global operations. Despite challenges in the insurance segment and overall revenue decline, the company’s forward-looking guidance and strategic initiatives indicate a promising path for future growth.