PETALING JAYA: AEON Credit Service (M) Bhd has posted a 5.46% year-on-year (y-o-y) jump in its net profit to RM51.81mil for its second quarter ended Aug 31.
This was mainly due to lower impairment losses on financing receivables, personnel expenses and advertising expenses recorded.
The group’s revenue came in 10% lower y-o-y at RM363.97mil, mainly due to the recognition of the Day-One net modification loss of RM28.41mil relating to the Aeon Relief Programme launched in June 2020 to provide financial assistance to customers and lower revenue from fee income.
The ratio of total operating expenses against revenue was recorded at 65% for the current quarter as compared to 74% in the preceding year corresponding quarter while its loan loss coverage ratio improved to 417% as compared to 342% in the same quarter last year.
On a half-year financial review basis, Aeon Credit’s net profit declined 41.61% to RM78.09mil mainly due to the disruptions from the movement control order on the company’s operations.
Revenue for the first six months dropped 3.73% y-o-y to RM753.85mil from RM783.03mil in the same period last year.
In a filing with Bursa Malaysia yesterday, the group said the ongoing pandemic is expected to have a negative bearing on the company’s financial performance and results for the financial year
Aeon Credit managing director Yuro Kisaka (pic) said the company has navigated through the unprecedented crisis by focusing on manpower allocation, sales growth and receivables collection.
“We will continue to closely monitor and assess the inherent credit risk in our financing portfolio by emphasising on enhancement of asset quality, embracing prudent cost and cash management and improving on financial and operational efficiencies through leveraging on our positive business fundamentals and extensive customer reach.
“The pandemic has increased the digital acceptance in the market. In financial year 2021, we will accelerate the deployment and rollout of our digitisation efforts to improve our customers’ touch points and user experience, ” he said.
The group has proposed an interim single-tier dividend of 9.2 sen per share, to be payable on Nov 5. This is lower compared to the 22.25 sen per share that was declared in the same period last year.
Did you find this article insightful?
67% readers found this article insightful