AEON Credit Service announced that it has recorded revenue growth of 15.9% to RM452.67 million for the first quarter ended 31 May 2023, compared to RM390.57 million recorded in the preceding year ended 31 May 2022.
The company said transaction and financing volume for Q1FYE24 increased by 23.2% to RM1.83 billion as compared to RM1.49 billion recorded in Q1FYE23, driven by higher festive season demand for personal financing and vehicle financing.
Correspondingly, the gross financing receivables increased by RM1.22 billion or 12.2% to RM11.22 billion in Q1FYE24 from the RM10.00 billion recorded in Q1FYE23. Non-Performing Loans ratio was 3.13% in Q1FYE24 as compared to 2.53% in Q1FYE23 while the loan loss coverage ratio stood at 227% as compared to 281% in the preceding year’s corresponding quarter.
For the quarter under review, AEON Credit registered a profit before tax of RM131.91 million compared to RM215.54 million recorded in the preceding year’s corresponding quarter mainly due to higher impairment losses of RM152.54 million on financing receivables as the Group had approximately RM80 million impairment reversal last year benefited from Employees Provident Fund withdrawal in April 2022 including higher expenses on talent recruitment and system upgrade to support the digitalisation initiatives. The Group also recorded a profit after tax of RM99.36 million as compared to RM163.07 million in Q1FYE23.
Moving forward, the group aims to sustain a modest growth trajectory in the financial year ending 29 February 2024.
