Noah Holdings generated substantially higher second-quarter profitability despite slightly lower revenue as cost controls and lower credit-loss provisions drove a significant improvement in operating leverage.
Net revenue declined 1.5% year-over-year to RMB619.9 million, or approximately $91.4 million. The decline reflected lower one-time commissions from insurance products and lower recurring service fees, partially offset by stronger performance-based income from mainland China private secondary products.
Income from operations increased 34% to RMB215.8 million, or $31.8 million. Total operating costs and expenses declined to approximately RMB404.1 million from RMB468.5 million, a reduction of about 14%, helped by lower compensation and benefits expenses and a decrease in provisions for credit losses.
Net income attributable to Noah shareholders increased 30% to RMB232.2 million, or $34.2 million. Non-GAAP net income attributable to shareholders increased 25.9% to RMB238 million.
Client activity also improved. Total active clients increased 12.4% year-over-year to 10,296. International registered clients increased 11% to 21,059, while transaction value for international investment products rose to RMB8.7 billion from RMB8.3 billion a year earlier.
Noah is continuing to shift its business toward serving global Chinese high-net-worth investors through booking centers in Hong Kong, Singapore and key U.S. markets. The company also said an AI plus Wealth Management initiative in Singapore produced 140% growth in assets under advisory over the past year.
KEY QUOTE:
“Entering 2026, the global macroeconomic landscape has become increasingly complex, marked by rapid policy shifts across jurisdictions and heightened geopolitical tensions. Yet, amidst these uncertainties lie significant opportunities.”
Jingbo Wang, Co-Founder and Chairlady of Noah Holdings
