AEON Credit net profit rises to RM163mil in Q1

KUALA LUMPUR (Bernama) -- Aeon Credit Service (M) Bhd's net profit rose to RM163.09 million in the first quarter of the financial year 2022 ended May 31, 2021 (Q1 2022), from RM26.28 million posted in the same quarter last year.

Revenue increased by 5.4% to RM410.97 million from RM389.88 million previously, it said in a filing with Bursa Malaysia today.

AEON Credit said total transaction and financing volume in the current quarter rose by 80.9% to RM1.41 billion from RM778.57 million in Q1 2021, as its performance in Q1 2021 was affected by the implementation of the Movement Control Order (MCO).

As of May 31, 2021, its gross financing receivables fell by RM460.07 million to RM10.06 billion, compared to the same period last year.

Its net financing receivables after allowance for impairment loss was RM9.34 billion in Q1 2022 compared to RM9.76 billion in Q1 2021, while its non-performing loans ratio stood at 1.75% compared to 1.42% previously.

AEON Credit said other income for the current quarter was recorded at RM49.19 million, mainly comprising bad debts recovered, insurance commission and interest/profit income from deposits with licensed financial institutions.

On prospects, the company said its sales and business performance managed to recover despite the challenges in Q1 2022.

"The company will continue to closely monitor and assess the inherent credit risks in its financing portfolio, with proactive attention on the enhancement of asset quality, prudent cost management and improvement on financial and operational efficiencies by leveraging its positive business fundamentals.

"Barring any unforeseen circumstances, the company expects to be able to maintain its financial performance for the financial year ending February 28, 2022," it added.