corporate

Aeon credit posts lower net profit of RM71.16 mln in 2Q

KUALA LUMPUR: AEON Credit Service (M) Bhd's net profit fell to RM71.16 million in the second quarter (2Q) ended Aug 31, 2024, from RM120.19 million in the same period last year.

Revenue rose by 14.8 per cent to RM541.43 million from RM471.73 million previously, due to stronger loan and financing growth, it said in a filing with Bursa Malaysia today.

"The group's total transaction and financing volume in the current quarter of RM2.16 billion was higher by 20.6 per cent as compared to the preceding year's corresponding quarter.

"Gross financing receivables as at Aug 31, 2024, of RM13.19 billion, was higher by RM1.63 billion as compared with last year," said AEON Credit.

Meanwhile, the group also proposed an interim single-tier dividend of 14.25 sen per share for the financial year ending Feb 28, 2025, amounting to RM72.76 million, with payment scheduled for Nov 7, 2024.

According to the filing, net financing receivables after allowance for impairment loss was RM12.48 billion as at Aug 31, 2024, from RM10.81 billion last year.

The group said its nonperforming loans (NPL) ratio has reduced to 2.37 per cent in 2Q as compared to 2.98 per cent recorded previously, resulting from corrective actions taken.

On prospects, the group adopts a cautious stance due to the existing geopolitical tensions, inflationary pressures and ongoing volatility in global financial markets.

"AEON Credit will continuously enhance its information technology capabilities to improve operational efficiencies while establishing an ecosystem to be built from the AEON group of companies operating in Malaysia (AEON Living Zone) to expand on its customer reach.

Barring any unforeseen circumstances, the group anticipates maintaining its business momentum through implementing the appropriate measures for the financial year ending Feb 28, 2025.

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