Aeon Credit doubles FY19 capex to RM120 million

KUALA LUMPUR: Aeon Credit Service (M) Bhd has doubled its capital expenditure (capex) allocation to RM120 million for the financial year ending Feb 28, 2019 (FY19) from previously.

Chief finance officer Lee Kit Seong said the allocation would be for branch transformation, digital marketing and strengthening of digital initiatives under its emoney platform.

“The company has plans for branch transformation, digital marketing initiatives and to upgrade system infrastructure.

“We have been in the business for over 20 years and (our) volumes, as well, as customer base are growing. We need to have the capacity to support our operation and business,” he told reporters after Aeon Credit’s annual general meeting yesterday.

Lee said two new products would be launched this financial year, namely Aeon Wallet and Aeon Member Plus Card to provide customers with payment, privileges and benefits.

On this year’s prospects, he said loan growth would be mainly driven by credit card and personal finance, and the company aimed to increase its credit card issuance to 400,000 by end-FY19 from the existing 260,000 cards.

“For vehicle financing, we see continuous support from the small bikes (segment). The company still sees opportunities from superbikes and consumer durables financing,” Lee added.

Total financing for FY18 was RM7.16 billion, representing growth of 11.1 per cent from the previous corresponding period’s RM6.44 billion.

The portfolio mix for receivables saw a marginal increase for personal financing at 26.4 per cent from 24.9 per cent in FY17, while vehicle financing maintained its position as the largest portfolio in FY18 with 58.8 per cent share of receivables compared with 58.8 per cent previously. — Bernama