Aeon Credit's net profit for Q3 rises to RM103.46mil

KUALA LUMPUR: Aeon Credit Service (M) Bhd’s net profit for the third quarter ended Nov 30, 2021 (Q3 FY2022) rose to RM103.46 million from RM42.15 million registered in the same quarter last year.

However, revenue slipped by 6.2 per cent to RM376.47 million from RM401.47 previously.

In a filing with Bursa Malaysia today, it said other income for the current quarter was higher at RM50.46 million mainly due to improved bad debt recoveries, insurance commission and interest or profit income from deposits with licensed financial institutions.

It said the ratio of total operating expenses against revenue decreased to 48.3 per cent for the current quarter as compared to 73.3 per cent in the corresponding preceding year quarter mainly due to lower impairment losses on financing receivables of RM33.09 million as compared to RM156.91 million for the corresponding preceding year quarter, partially offset by higher operating expenses.

Besides that, it said funding cost for the current quarter was lower compared to the corresponding preceding year quarter mainly due to reduced borrowings and lower cost of funds.

"The nominal value of borrowings as at November 30 this year was RM7.52 billion as compared to RM7.8 billion as at Nov 30, 2020.

"As a result, the profit before tax for the current quarter of RM164.03 million increased by 184.3 per cent as compared to the corresponding preceding year quarter,” it said.

On prospects, it said the company would continue to closely monitor and assess the inherent credit risks in its financing portfolios with proactive attention focused on the enhancement of asset quality, prudent cost management and improvement on financial and operational efficiencies by leveraging on its positive business fundamentals.

"The company is committed to building on its business sustainability and growth agenda and will be continuously enhancing its information technology capabilities to drive the digitalisation of its operations.

"Barring any unforeseen circumstances, the company expects to be able to achieve an improved financial performance for the financial year ending Feb 28, 2022,” it added. - Bernama