AEON Credit Q3 earnings soar 145.5%

AEON Credit said it expects a better performance for its financial year ending Feb 28, 2022, and pointed out that the easing of movement restrictions has allowed the group to gradually reopen its branch operations to better serve customers and expand its business.

PETALING JAYA: Aeon Credit Service (M) Bhd saw its net profit jumping 145.5% year-on-year (y-o-y) to RM103.5mil in its third quarter ended Nov 30, 2021 (Q3) even though revenue for the period was 6.2% lower at RM376.5mil.

The higher net profit during the quarter was mainly due to a drop in operating expenses as a result of lower impairment losses on financing receivables of RM33.1mil, compared to RM156.9mil a year earlier.

AEON Credit pointed out in a statement that the group’s total transaction and financing volume in Q3 of RM1.19bil was 2.9% lower y-o-y due to the implementation of the National Recovery Plan.

The group also noted that its non-performing loan (NPL) ratio as at Nov 30, 2021 was 1.75%, compared to 2.88% a year earlier.

Earnings per share for Q3 was 40.53 sen versus 16.51 sen a year earlier.

For the nine months under review, net profit jumped 184.5% y-o-y to RM342mil while revenue was marginally higher at RM1.16bil.

The higher net profit for the nine-month period was mainly due to the incremental increase in revenue of RM6.6mil coupled with a reduction in the allowance for impairment losses of RM294.68mil.

Also, its loan loss coverage ratio stood at 410% as at Nov 30, 2021 versus 318% a year earlier.

AEON Credit said the slightly higher revenue for the nine-month period was mainly due to higher interest income, as the previous year’s revenue was impacted by day-one net modification loss from the AEON Relief Programme of RM28.4mil.

Earnings per share for the nine-month period was RM1.32 compared to 45.11 sen a year earlier.

AEON Credit said it expects a better performance for its financial year ending Feb 28, 2022, and pointed out that the easing of movement restrictions has allowed the group to gradually reopen its branch operations to better serve customers and expand its business.

The group also noted that the central bank has forecast that Malaysia’s economic growth is on track to expand by 3% to 4% for 2021 with the expected increase in economic activities due to the progressive relaxation of Covid-19 containment measures.