KUALA LUMPUR: Aeon Credit Service (M) Bhd's net profit fell 39 per cent to RM99.36 million in the first quarter (Q1) ended May 31, 2023 from RM163.07 million net profit in the same period a year earlier.
Group revenue, however, increased 15.9 per cent to RM452.67 million from RM390.57 million previously, mainly attributed to stronger loan and financing growth.
Aeon Credit's transaction and financing volume for Q1 2023 increased by 23.2 per cent to RM1.83 billion from RM1.49 billion recorded last year, driven by higher festive season demand for personal financing and vehicle financing.
Correspondingly, the gross financing receivables increased by RM1.22 billion or 12.2 per cent to RM11.22 billion in Q1 2023 from the RM10.00 billion recorded previously.
Aeon Credit said it aims to sustain a modest growth trajectory in the financial year ending Febr 29, 2024 (FY24).
The company remains committed to closely monitoring and assessing inherent credit risks in its financing portfolios and focus on growing quality receivables with the adoption of risk-based collection scoring using artificial intelligence (AI) tools, which enables it to prioritise high risk accounts.
Moreover, Aeon Credit said it remains proactive in building its long-term business sustainability.
"The company is steadfast in enhancing its information technology capabilities to support its growth initiatives.
"Notably it has implemented instant conditional approval and introduced risk-based credit scoring utilising AI.
"Barring any unforeseen circumstances, the company expects to be able to maintain its financial performance by putting in place the appropriate measures for FY24," it added.