AEON Credit Third Quarter Net Profit Eases To RM62.07 Mln

KUALA LUMPUR, Dec 19 (Bernama) -- Aeon Credit Service (M) Bhd’s net profit for the third quarter of the financial year ended Feb 28, 2025 (3Q 2025) fell to RM62.07 million from RM85.55 million last year.

However, revenue increased by 15.5 per cent to RM562 million versus RM486.51 million, mainly attributable to stronger loan and financing growth.

The company said for the cumulative nine-month period, its net profit declined to RM239.64 million from RM305.10 million while revenue climbed to RM1.63 billion from RM1.41 billion.

“The gross financing receivables as of Nov 30, 2024 of RM13.665 billion was higher by RM1.762 billion compared to Nov 30, 2023.  The net financing receivables after allowance for impairment loss was RM12.901 billion as of Nov 30, 2024 compared to RM11.147 billion as of Nov 30, 2023,” it said in a stock exchange filing.

Aeon Credit noted that its non-performing loans (NPL) ratio reduced to 2.42 per cent as of Nov 30, 2024 compared to 2.73 per cent in the same period last year.

The ratio of total operating expenses against revenue for the current quarter was recorded at 71.1 per cent compared to 68.6 per cent in the preceding year's corresponding quarter. The increase in the ratio of operating expenses was mainly attributable to the higher impairment losses on financing receivables of RM215.307 million, compared to RM182.818 million in the preceding year's corresponding quarter.

It was also driven by higher operating expenses, in line with increased transactions and financing volume, compensated by the higher revenue recorded.

“Interest expense for the current quarter was higher compared to the preceding year's corresponding quarter, mainly due to higher borrowings, in line with the growth in receivables. The nominal value of borrowings as of Nov 30, 2024 was RM10.470 billion compared to RM8.669 billion (the year before),” it said.

On its prospects, Aeon Credit said it maintains a cautious business stance due to the prevailing geopolitical tensions, inflationary pressures and ongoing volatility in global financial markets.

“It will continue to remain prudent, placing emphasis on growing quality assets and closely monitoring the inherent credit risks in its financing portfolios. The group will also focus on enhancing its information technology capabilities to drive operational efficiencies,” it said in a separate statement.

In addition, the group will continue developing the ‘AEON Living Zone’, an ecosystem centred around the AEON Group of Companies in Malaysia, to broaden its customer reach.

As part of this initiative, the group plans to introduce a tiered membership programme in the final quarter of the 2025 financial year.

-- BERNAMA