Transition year for Aeon Credit due to MFRS 9

“However, the group’s provisioning seems excessively prudent – its loan loss coverage ratio is around 330% despite fairly stable non-performing loan (NPL) ratios and robust collection rates,” Alliance DBS Research said.

KUALA LUMPUR: Alliance DBS Research views the current financial year ending February, 2020 for Aeon Credit Services Malaysia (ACSM) to be a transition year.

It said on Monday ACSM has continued to chart strong growth in its receivables base over the past year at double digits, as it expanded into higher income segments within its core product lines (i.e. personal financing, motorcycle and automotive financing).