KUALA LUMPUR (July 6): For the first financial quarter ended May 31, 2021 (1QFY22), AEON Credit Service (M) Bhd’s net profit increased by 521 percent to RM163.09 million, up from RM26.28 million in the previous corresponding quarter. The jump in other income, which includes bad debts recovered, insurance commission, and interest or profit income from accounts with licensed financial institutions, supported the significantly larger profit.
According to its Bursa Malaysia filing, earnings per share increased to 63.88 sen from 10.29 sen previously.
Due to a growth in transaction and financing volume, the group’s quarterly revenue increased by 5.41 percent to RM410.97 million from RM389.88 million a year before.
AEON Credit, on the other hand, did not pay a dividend to its shareholders this quarter.
The group’s net profit increased by 43.4 percent to RM113.72 million on a quarterly basis, while revenue increased by 1.1 percent to RM406.35 million.
Moving forward, the company said it will continue to closely monitor and assess the credit risks in its financing portfolio, with a proactive focus on improving asset quality, prudent cost management, and financial and operational efficiencies by leveraging its strong financial and operational fundamentals.
AEON Credit further stated that despite the obstacles in 1QFY22, it was able to regain its sales and business performance.
“The company is committed to pursuing its business sustainability agenda and will continue to invest in information technology to drive the digitalisation of its operations,” it said. “The company expects to be able to maintain its financial performance for the fiscal year ending February 28, 2022, barring any unforeseen circumstances,” it added.
AEON Credit’s stock dropped two sen to RM11.78, giving the company a market capitalization of RM3.01 billion./n
