Aeon Credit Service reported its 3-month financial performance ending May 2022 with a total transaction and financing volume of RM1.487 billion which was higher by 5.6% as compared to the preceding year’s corresponding quarter.
The Group recorded total revenue of RM390.571 million, which was lower by 5.0% as compared to the preceding year’s corresponding quarter mainly attributable to the decrease in average financing receivables compared to the preceding year’s corresponding quarter.
The gross financing receivables as at 31 May 2022 of RM9.996 billion was lower by RM61.874 million as compared to last year, as for net financing receivables after allowance for impairment loss was RM9.284 billion as compared to RM9.339 billion in 2021. The non-Performing Loans ratio was 2.53% compared to 1.75% while loan loss coverage ratio stood at 281% as compared to 409%.
Other income for the current quarter was higher at RM58.734 million mainly due to higher bad debt recoveries. Ratio of total operating expenses against revenue was recorded at 40.0% for the current quarter as compared to 38.6% in the preceding year corresponding quarter. The increase in operating expenses was mainly due to higher impairment losses on financing receivables of RM37.279 million as compared to RM23.253 million for the preceding year’s corresponding quarter, partially offset by lower other operating expenses. Funding cost for the current quarter was lower compared to the preceding year’s corresponding quarter mainly due to reduced borrowings and lower cost of funds. The nominal value of borrowings was RM7.371 billion as compared to RM7.878 billion the previous year. Profit before tax for the current quarter of RM215.535 million is marginally lower by 0.1% as compared to the preceding year’s corresponding quarter.
PBT for the current quarter was recorded at RM215.535 million, an increase of 381.2% as compared to RM44.789 million recorded in the immediate preceding quarter. The higher PBT was mainly contributed by the incrementally higher revenue coupled with the lower impairment losses of RM37.279 million recorded in the current quarter as compared to RM154.676 million for the immediate preceding quarter as the previous quarter’s productivity performance was impacted by the increased COVID-19 infections from the highly contagious Omicron variant amongst the staffs and the general public.
On outlook, the Group will continue to closely monitor and assess the inherent credit risks in its financing portfolios, with proactive attention focused on the enhancement of asset quality, prudent cost management, and improvement of financial and operational efficiencies by leveraging on its positive business fundamentals.
