AEON CREDIT’S 2Q NET PROFIT JUMPS TO RM120.19 MLN

KUALA LUMPUR, Sept 26 (Bernama) -- Aeon Credit Service (M) Bhd’s net profit jumped 58.90 per cent to RM120.19 million for the second quarter ended Aug 31, 2023 (2Q FY2024) from RM75.65 million in the same period last year.

Revenue rose 18.20 per cent to RM471.73 million from RM399.17 million previously, mainly attributable to stronger loan and financing growth.

In a filing with Bursa Malaysia today, the financial services provider said its total transaction and financing volume grew 11 per cent year-on-year (y-o-y) to RM1.790 billion in 2Q FY2024, while net financing receivables after allowance for impairment loss were also higher at RM10.81 billion against RM9.55 billion in the same period last year.

However, it said the nonperforming loans ratio was slightly higher at 2.98 per cent in 2Q FY2024 versus 2.91 per cent in the same quarter last year, while funding costs were also 10.1 per cent higher as compared to the preceding year’s corresponding quarter.

For the cumulative six months ended Aug 31, 2023, Aeon Credit saw its net profit slip to RM219.55 million against RM238.72 million previously, mainly due to higher impairment losses on financing receivables, while revenue surged to RM924.40 million versus RM789.74 million previously on better total transaction and financing volume.

In a separate statement, the company’s board has recommended an interim single-tier dividend of 28.50 sen per share for the financial year ending Feb 29, 2024 (FY2024), payable on Nov 2, 2023.

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On the outlook for the remainder of the second half of FY2024, Aeon Credit said it is cautiously optimistic about the outlook given the prevailing economic headwinds both locally and abroad.

“Nevertheless, the group remains committed to closely monitoring and assessing inherent credit risks in its financing portfolios and focusing on growing quality receivables with the adoption of risk-based collection scoring using artificial intelligence (AI) tools, which enables them to prioritise high-risk accounts,” it said.

-- BERNAMA