KUALA LUMPUR: Aeon Credit Service (M) Bhd
expects to sustain its business momentum for the financial year ending Feb 28, 2027, as it remains focused on growing quality financing asset and continues to closely monitor inherent credit risks within its financing portfolio.
The group said in its results announcement to Bursa Malaysia it will enahnce its information technology capabilities to improve operational efficiencies and maintain disciplined cost management.
"In addition, the group will leverage the broader AEON ecosystem in Malaysia, particularly through its 51% subsidiary, AEON360 Sdn Bhd, to strengthen customer loyalty, expand its customer base and enhance the overall customer experience."
In the first financial quarter ended May 31, 2026, Aeon Credit Service posted a net profit of RM95.16mil, an increase from RM77.55mil in the year-ago quarter as revenue rose to RM647.57mil from RM599.92mil in the comparative quarter.
The improved revenue was owing to stronger loan and financing growth. According to the group, total transaction and financing volume in quarter rose 4.6% to RM2.35bil as compared to the same quarter in the previous year.
Gross financing receivables as at May 31, 2026, of RM16.07bil was higher by RM1.44bil as compared to a year earlier.
The net financing receivables, after allowance for impairment loss was RM15.25bil as at May 31, 2026 as compared to RM13.82bil as at May 31, 2025.
The non-performing loans (NPL) ratio increased to 2.6% as at May 31, 2026, as compared to 2.57% as at May 31, 2025, mainly due to cost-of-living pressures affecting certain customer segments, particularly younger and lower-income groups, and corrective actions have been taken to address the NPL ratio increase.
The loan loss coverage ratio remained healthy at 195% as at May 31, 2026, as compared to 217% recorded as at May 31, 2025.
