AEON Credit PBT For Last Quarter Soars 189% To RM129.8 Million, Declares Final Dividend

AEON Credit reported its latest quarterly financial performance ending 28 February 2023, the total transaction and financing volume hit RM1.599 billion which was higher by 9.3% as compared to the preceding year’s corresponding quarter. For the quarter the group recorded a total revenue of RM432.664 million, which was higher by 19.2% as compared to the preceding year corresponding quarter mainly attributable to stronger loan and financing growth.

The gross financing receivables as at 28 February 2023 of RM10.836 billion was higher by RM978.389 million as compared to 2022. The net financing receivables after allowance for impairment loss was RM10.049 billion as compared to RM9.101 billion recorded last year. The non Performing Loans ratio was 2.89% as compared to 2.66%. Other income for the current quarter was higher at RM48.562 million mainly due to improved bad debt recoveries.

Profit before tax for the current quarter of RM129.8 million increased by 189.8% as compared to the preceding year corresponding quarter mainly due to lower impairment losses on financing receivables and improved bad debt recoveries.

As for current Year-to-date vs Preceding Year-to-date, the group’s total transaction and financing volume for the financial year-to-date grew by 31.0% to RM6.247 billion. Total revenue registered for the financial year-to-date of RM1.640
billion was higher by 7.6% compared to RM1.525 billion recorded in the corresponding preceding year.

The Group recorded a higher PBT of RM546.976 million for the financial year-to-date as compared to RM526.820 million in the preceding year-to-date. The increase was mainly due to the incremental increase in revenue and bad debt recoveries of RM115.365 million and RM25.301 million respectively coupled with the reduction in operating expenses of RM28.075 million. However, this was offset by higher impairment losses on financing receivables by RM144.547 million. The loan loss coverage ratio stood at 252% as at 28 February 2023 as compared to 289% as at 28 February 2022.

PBT for the current quarter increased by 27.8% to RM129.811 million from RM101.583 million recorded in the immediate preceding quarter. The higher PBT was mainly attributable to lower impairment losses of RM117.198 million recorded in the current quarter as compared to RM143.406 million for the immediate preceding quarter.

Moving forward, the group remains cautiously optimistic that business sentiment will gradually be improved to pre-pandemic levels.

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