Signage of Aeon Credit Service (M) Bhd is seen at a mall in Melaka.(For Star Online)
KUALA LUMPUR: Aeon Credit Service (M) Bhd
continued its streak of double-digit net profit growth in the second quarter (Q2) ended Aug 31, 2017, as its revenue growth outpaced the increase in operating expenses.
The consumer financial services provider told Bursa Malaysia that its Q2 net profit jumped 29% to RM71.38mil from a year earlier, marking its fifth successive quarter of double-digit bottom-line growth.
This was achieved on a 16% year-on-year gain in revenue to RM311.32mil.
Aeon Credit, a subsidiary of Tokyo-listed Aeon Financial Service Co Ltd, said total transaction and financing volume in the Q2 had risen by 5.1% to RM1.03bil.
Other operating income amounted to RM26.89mil, mainly comprising bad debts recovered, commission income from sale of insurance products and loyalty programme processing fees.
“Ratio of total operating expense against revenue was recorded at 59.3% for the current quarter as compared to 63.6% in the quarter ended Aug 31, 2016. The decrease was mainly attributable to higher growth in interest income and corresponding lower increase in operating expenses,” it said.
However, funding cost for the quarter was higher compared to the quarter ended Aug 31, 2016, due to increase in borrowings of 16.1%.
Aeon Credit said the nominal value of borrowings as at Aug 31, 2017, was RM5.62bil versus RM4.84bil a year earlier.
The board has recommended an interim dividend of 21.13 sen for the financial year ending Feb 28, 2018 (FY18), payable on Nov 7 (FY17: 30.5 sen).
On its prospects for the rest of the financial year, it said it had recorded 15.6% and 24.8% year-on-year growth in revenue and net profit respectively for the six months ended Aug 31, 2017.
“The company expects to be able to maintain with its financial performance for the year ending Feb 28, 2018, based on the scheduled implementation of its business plan,” it added.
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