PETALING JAYA: Aeon Credit Service (M) Bhd
, the domestic consumer financial services arm of Japan’s AEON Group, expects its digital banking venture, AEON Bank, to break even by the financial year ending Feb 28, 2029 (FY29), in line with the original projections set at launch.
AEON Bank operates as a 50:50 joint venture between AEON Credit and its parent, AEON Financial Service Co Ltd, which holds a 62% stake in AEON Credit.
RHB Research said that, following AEON Credit’s first quarter ending May 31, 2027 results briefing, the digital bank “remained broadly on track with its original business plan, targeting breakeven by FY29”.
Additionally, the company has guided that its share of losses from AEON Bank, which commenced operations in early January 2024, will be approximately RM75mil in FY27, reflecting continued investment in technology infrastructure and customer acquisition.
“Near-term operational momentum looks encouraging, the digital bank has brought on board 1,000 merchants under its business banking wing, while loan disbursements continue to gain traction,” RHB Research said.
The research house noted that personal financing disbursements “are expected to scale up to RM20mil this year, which would help provide a slight lift to yields and net interest margin by the end of the year”.
“The digital bank plans to introduce cash management and payroll services within the AEON Group ecosystem before extending them to external merchants,” RHB Research added.
Over the longer term, it is targeting an asset mix of 60% business banking and 40% personal banking.
While RHB Research has maintained its “buy” call on the stock, it has revised the target price to RM6.60 from RM6.80 after trimming FY27 earnings by 6%, FY28 by 8% and FY29 by 3%.
