Aeon Credit posts 29% jump in second quarter profit

PETALING JAYA: Aeon Credit Service (M) Bhd recorded a 29.3% increase in net profit to RM71.39mil for the second quarter on the back of higher total transaction and financing volume.

For the period ended Aug 31, 2017, the financial service provider saw total transaction and financing volume increasing 5.1% from a year ago to RM1.028bil.

Revenue for the period was up 15.7% to RM311.3mil.

The company’s revenue and net profit for the six months ended Aug 31, 2017 were also up 15.6% and 24% at RM613.6mil and RM147.2mil, respectively.

Total transaction and financing volume for the period increased by 4.7% to RM2.08bil from a year ago.

In its announcement to the stock exchange, it noted that financing receivables were at RM6.88bil as at Aug 31, 2017, representing an increase of 16.2% from Aug 31, 2016.

The non-performing loan ratio, meanwhile, was at 2.48% compared to 2.43% previously.

Other operating income was at RM26.89mil and RM58.05mil for the second quarter and six-month period ended Aug 31, 2017, respectively, mainly comprising bad debts recovered, commission income from the sale of insurance products and loyalty programme processing fees.

For the second quarter, the ratio of total operating expense against revenue was recorded at 59.3%.

Funding cost for the quarter, meanwhile, was higher compared to a year ago due to an increase in borrowings of 16.1%.

The nominal value of borrowings as at Aug 31, 2017 was RM5.62bil, as compared to RM4.839bil on the same date last year.

“The company expects to be able to maintain its financial performance for the year ending Feb 28, 2018 (FY18) based on the scheduled implementation of its business plan,” it said in its filing with the stock exchange.

Aeon Credit also announced an interim single-tier dividend of 21.13 sen per share for FY18.