AEON Credit Service announced that it has posted a 14.8% growth in revenue to RM541.43 million for the second quarter ended 31 August 2024 ("Q2FYE25"), compared to RM471.73 in the preceding year ended 31 August 2023 ("Q2FYE24").
For the quarter under review, the company's Profit Before Tax was RM101.1 million and this was offset by a share of losses of RM18.74 million (Q2FYE24: RM0) from AEON Bank (M) Berhad, an associate company of AEON Credit. Profit after tax however was down substantially to RM71 million compared to RM120 million recorded in the previous year's quarter two.
The results it said reflect the company's expanded financing activities, with increased new financing receivables and higher operating expenses in line with stronger transaction volumes. Impairment losses on financing receivables stood at RM193.58 million for Q2FYE25, compared to RM120.57 million in Q2FYE24. As a result, AEON Credit recorded Profit After Tax ("PAT") of RM71.16 million in Q2FYE25.
This was underpinned by a 20.6% increase in transaction and financing volume to RM2.16 billion for Q2FYE25, compared to the preceding year's corresponding quarter, driven by strong growth in personal financing, automobile financing, and credit card business.
Correspondingly, gross financing receivables increased by RM1.63 billion to RM13.20 billion in Q2FYE25 compared to the preceding year, as the Group continues to drive effective marketing strategies and focus on penetrating the middle-income segment. The Non-Performing Loans (NPL) was improved to 2.37% as of 31 August 2024 from 2.98% on 31 August 2023.
In respect of the financial year ending 28 February 2025, an interim single-tier dividend of 14.25 sen per share has been recommended by the Board to be paid on 7 November 2024, with a dividend payout ratio of 41.0%.
