Aeon Credit’s first quarter net profit rises 21% to RM75.8 million

PETALING JAYA: Aeon Credit Service (M) Bhd’s net profit rose 21% for the first quarter ended May 31, 2017 to RM75.81 million from RM62.73 million in the previous year’s corresponding quarter, underpinned by higher interest and fee income.

The non-bank lender also saw a 15.5% increase in revenue to RM302.28 million from RM261.64 million.

Aeon Credit’s financing receivables increased 17.4% to RM6.7 billion from RM5.7 billion, while nonperforming loans ratio inched slightly by 0.01% to 2.43% from 2.42%.

The group also saw an increase in funding cost, as borrowings increased 17.7%, with the nominal value of borrowings standing at RM5.42 billion as compared with the RM4.60 billion last year.

“Other operating income was recorded at RM31.16 million for the first quarter ended 31 May 2017 mainly comprising bad debts recovered, commission income from sale of insurance products and AEON Big loyalty programme processing fees,” Aeon Credit said in a Bursa Malaysia filing.

On the outlook, the group expects to be able to maintain its financial performance for the financial year ending February 28, 2018 based on a scheduled implementation of its business plan.

The company’s shares fell four sen to RM19.08 yesterday, with some 107,600 shares changing hands. It has a market capitalisation of RM2.748 billion.

Meanwhile in separate filings, the company announced the resignation of Krishnappan S.P.S Singaram as executive director and the appointments of Tetsuro Takano and Ajith Jayaram onto the board.