Aeon Credit posts 21% net profit growth to RM76mil

PETALING JAYA: Credit provider Aeon Credit Service (M) Bhd has registered a 20.9% net profit growth to RM75.81mil for the first quarter ended May 31, 2017 compared with the previous corresponding period.

According to a filing with Bursa Malaysia yesterday, the company recorded operating income amounting to RM31.16mil mainly due to bad debts recovered, commission income from sale of insurance products and Aeon Big loyalty programme processing fees.

Aeon Credit saw its revenue for the quarter grow 15.5% to RM302.28mil, from RM261.64mil during the corresponding period last year.

Its total transaction and financing volume in the first quarter was RM1.05bil.

Financing receivables was RM6.67bil as at May 31, 2017, representing a 17.4% increase from RM5.7bil as at May 31, 2016.

Meanwhile, its non-performing loans (NPL) ratio was 2.43% as at May 31, 2017, compared with 2.42% as at the same period last year.

“Ratio of total operating expense against revenue was at 58.2% compared with 60.5% in the corresponding quarter last year.

“The decrease was mainly attributable to higher growth in interest income and corresponding lower increase in operating expenses,” said Aeon Credit in the filing.

The company added that it expected to continue with its financial performance for the year ending Feb 28, 2018, based on the scheduled implementation of its business plan.

Aeon Credit closed 0.21% lower at RM19.08.