AEON Credit Service reported a steady performance for the financial quarter ended 31 May 2026 (“Q1FYE27”), with Profit After Tax increasing by 20.5% year-on-year to RM93.43 million, compared to RM77.55 million in the corresponding quarter last year (“Q1FYE26”).
The increase in PAT was primarily driven by robust revenue growth attributed by stronger loan and financing growth, alongside a lower operating expense ratio. This was partially offset by higher finance costs in line with receivables growth and a higher share of losses from the Group’s associate, AEON Bank (M) Berhad
Revenue increased by 7.9% from RM599.92 million to RM647.57 million, while Profit Before Tax rose by 20% from RM109.03 million to RM130.88 million.
The Group’s transaction and financing volume increased by 4.6% YoY to RM2.35 billion in Q1FYE27. Gross financing receivables expanded to RM16.07 billion as at 31 May 2026, representing growth of 9.8% YoY or RM1.44 billion higher than the corresponding quarter of the preceding year.
The Non-Performing Loans ratio stood at 2.60%, compared to 2.57% a year earlier. AEON Credit continues to maintain prudent credit risk management practices and the loan loss coverage ratio remained healthy at 195%, compared to 217% recorded a year earlier.
Other income for the quarter was recorded at RM55.19 million, mainly attributable to bad debt recoveries of RM51.79 million. The ratio of total operating expenses to revenue was 63.0%, as compared to 68.5% in the corresponding quarter of the previous year.
The Group also equity-accounted its proportionate share of losses in AEON Bank amounting to RM17.69 million during the quarter, compared to RM15.92 million in the corresponding quarter of the previous year. AEON Bank will continue to prioritise its business banking products, targeting the financial needs of merchants and suppliers within AEON ecosystem, supporting the Bank’s long-term growth trajectory through strengthened collaboration across the AEON Group of Malaysia.
