Taxation (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Components of Group's (loss)/income Before Income Tax Expense

The components of the Group’s income before income tax expense for the years ended December 31, 2019, 2020 and 2021 are as follows:

	For the Year Ended December 31,
	2019			2020			2021
	(RMB in thousands, except for percentages)
Income before income tax expense		2,706,511			685,609			2,769,534
Income/(Loss) from non-China operations		41,461			15,143			(30,047	)
Income from China operations		2,665,050			670,466			2,799,581
Income tax expense applicable to China operations		411,959			90,629			428,267
Income tax expense applicable to non-China operations		—			—			7,151
Total income tax expense		411,959			90,629			435,418
Effective tax rate for China operations		15.5	%		13.5	%		15.3	%
Effective tax rate for the Group		15.2	%		13.2	%		15.7	%

Schedule of Current and Deferred Portion of Income Tax Expense of Company's China Subsidiaries, VIEs, and Subsidiaries of VIEs

The following table sets forth current and deferred portion of income tax expense of the Company’s China subsidiaries, the VIEs, and subsidiaries of the VIEs:

	For the Year Ended December 31,
	2019		2020			2021
	(RMB in thousands)
Current income tax expense		352,036		594,149			831,675
Deferred income tax expense		59,923		(503,520	)		(396,257	)
Income tax expense		411,959		90,629			435,418

Schedule of Reconciliation Between Statutory EIT Rate and Effective Tax Rate for Group

The following table sets forth reconciliation between the statutory enterprise income tax (“EIT”) rate and the effective tax rate for the Group:

	For the Year Ended December 31,
	2019			2020			2021
Statutory EIT rate		25.0	%		25.0	%		25.0	%
Change of tax position*	—				(2.4	)%		—
Effect of tax holidays		(8.9	)%		(9.6	)%		(10.8	)%
Tax effect of non-deductible expenses		(0.4	)%		1.1	%		0.9	%
Changes in valuation allowance	**				(0.3	)%		0.1	%
Tax rate difference from statutory rate in other jurisdictions and others		(0.5	)%		(0.6	)%		0.5	%
Effective tax rates for the Group		15.2	%		13.2	%		15.7	%

* In the third quarter of 2020, RMB16.2 million income tax provision relating to 2019 was reversed as one subsidiary of the Group was certified to be qualified for using a preferential tax rate of 10% for 2019 annual tax clearance in this quarter.

** Less than 0.1%.

Schedule of Effect of Tax Holiday Related to Group

The following table sets forth the effect of tax holiday related to the Group:

	For the Year Ended December 31,
	2019		2020		2021
	(In thousands, except per share amount)
Tax holiday effect		239,732		66,110		299,578
Basic net income per share effect		0.67		0.18		0.81
Diluted net income per share effect		0.64		0.16		0.72

Schedule of Components of Deferred Tax Assets and Deferred Tax Liabilities

Deferred income tax expense reflects the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of the deferred tax assets are as follows:

	For the Year Ended December 31,
	2020			2021
Deferred tax assets
- Deferred guarantee income and other accrued expenses		477,023			832,412
- Contingent guarantee liabilities		434,697			232,210
- Provision for credit losses		359,293			646,460
- Advertising expenses in excess of deduction limit		54,970			178
- Net operating loss carryforwards		13,649			21,919
Less: valuation allowance		(4,429	)		(6,756	)
Total deferred tax assets		1,335,203			1,726,423
Net deferred tax assets		747,332			1,176,878

The components of the deferred tax liabilities are as follows:

	For the Year Ended December 31,
	2020		2021
Deferred tax liabilities
-Contract assets and service fees receivable		490,204		523,752
-Guarantee receivables		118,713		80,128
Total deferred tax liabilities		608,917		603,880
Net deferred tax liabilities		21,046		54,335

Schedule of Movement of Valuation Allowance

	For the Year Ended December 31,
	2019			2020			2021
Balance at beginning of the year		(6,785	)		(6,662	)		(4,429	)
Additions		(4,255	)		(2,243	)		(2,659	)
Reversals		4,378			4,476			332
Balance at end of the year		(6,662	)		(4,429	)		(6,756	)