AEON Credit Service reported a revenue growth of 6.6% to RM399.17 million for the second quarter ended 31 August 2022 compared to the RM374.48 million recorded in the preceding year corresponding quarter ended 31 August 2021.
Transaction and financing volume increased by 127.5% to RM1.61 billion as compared to RM708.83 million recorded in the previous years quarter in tandem with an improved business environment, further supported by various marketing campaigns and merchant partnership programs deployed by the Group to drive sales and financing receivables growth the group said.
Correspondingly, its gross financing receivables increased by RM0.76 billion to RM10.38 billion in Q2FYE23 compared to RM9.62 billion. Non-Performing Loans ratio was 2.91% in Q2FYE23 as compared to 2.24% in Q2FYE22 while the loan loss coverage ratio stood at 276% as compared to 343% in the preceding year’s corresponding quarter.
For the quarter under review, AEON Credit registered a profit before tax of RM100.05 million compared to RM102.15 million recorded in the preceding year’s corresponding quarter contributed to the higher impairment losses on financing receivables of RM149.95 million recorded in the current quarter compared to RM92.27 million for the preceding year corresponding quarter, partially offset by lower other operating expenses.
On a half-year financial review basis, AEON Credit’s total revenue was marginally higher at RM789.74 million compared to RM785.44 million recorded in the preceding year first half ended 31 August 2021.
Moving forward,the group remains cautiously optimistic that its business revenue will gradually improve to pre-pandemic levels amid the expected economic recovery in Malaysia.
In respect of the financial year ending 28 February 2023, an interim single-tier dividend of 28.50 sen per share has been recommended by the Board to be paid on 3 November 2022, with a dividend payout ratio of 30.48%.
