AEON Credit is adopting a cautious stance on its outlook.
KUALA LUMPUR: Aeon Credit Service (M) Bhd
aims to maintain its business momentum by leveraging on the wider AEON Group of Companies group database.
It planned to expand its customer reach while enhancing its information technology capabilities to improve on its operational efficiencies.
The measures would be implemented in the financial year ending Feb 28, 2025 (FY25), the company said in a filing with Bursa Malaysia.
AEON Credit is adopting a cautious stance on its outlook due to the existing geopolitical tensions, inflationary pressures and ongoing volatility in global financial markets.
“Nevertheless, the group will continue to remain prudent and cautious, placing emphasis on growing quality assets and closely monitoring the inherent credit risks in its financing portfolios,” it said in the notes accompanying to its financial statements.
In its first quarter ended May 31, AEON Credit posted a 7.1% year-on-year (y-o-y) increase in its net profit to RM106.4mil as basic earnings per share rose at the same quantum to 20.84 sen.
Revenue for the quarter rose by 15.4% y-o-y to RM522.3mil while total transaction and financing volume in the current quarter was higher by 7.8% to RM1.98bil, according to the group.
Stronger loan and financing growth drove the rise in revenue during the period, the company said.
“The ratio of total operating expenses against revenue for the current quarter was recorded at 63.5% as compared to 63% in the preceding year’s corresponding quarter.
“The marginal increase in the ratio of operating expenses was mainly attributable to the higher impairment losses on financing receivables of RM163.5mil as compared to RM152.5mil for the preceding year’s corresponding quarter,” AEON Credit said.
The company said its gross financing receivables as at May 31 of RM12.65bil was higher by RM1.434bil when compared with May 31, 2023. Meanwhile, it said the non-performing loan ratio had reduced to 2.46% as at the end of the reported quarter, as compared to 3.13% a year ago.
