KUALA LUMPUR: Aeon Credit Service (M) Bhd
’s net profit was back on a double-digit growth path in the financial year ended Feb 28, 2017 (FY17) after easing to a rare single-digit growth (5.8%) in the preceding year.
The consumer financial services provider announced to Bursa Malaysia that it posted a 16.1% growth in net profit for the year under review to another record of RM265.03mil. Revenue was up 14.2% to RM1.1bil.
For the fourth quarter, the subsidiary of Tokyo-listed Aeon Financial Service Co Ltd chalked up a net profit of RM80.05mil, an increase of 17.5% from the same period in FY16.
Except for FY16, Aeon Credit has never failed to deliver a double-digit growth in net profit year after year since becoming the first non-bank consumer finance firm to be listed on Bursa Malaysia’s main market (in December 2007).
In its latest unaudited financial report, it said the financing receivables as at Feb 28, 2017, was RM6.44bil, up 19.13% from RM5.41bil a year earlier.
The company had also managed to slash its non-performing loans (NPL) ratio to 2.28% compared to 2.47% as at Feb 29, 2016.
Total operating expenses, however, rose by 17.94% and 13.65% in Q4 and FY17 respectively compared with the previous year’s corresponding periods.
This was due to higher allowance for impairment losses on financing receivables, higher personnel expenses and the recognition of impairment loss on investment in Aeon Credit Service India Pte Ltd in the quarter just ended.
On the FY18 prospects, Aeon Credit said it expected to be able to maintain its financial performance for the year based on the scheduled implementation of its business plan.
It has proposed a final dividend of 32.5 sen per share (previously 29.6 sen), which would bring the total dividend for FY17 to 63 sen (FY16: 59.45 sen).
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