Aeon Credit Q1FYE25 revenue increased by 15.4%

KUALA LUMPUR: Aeon Credit Service (M) Berhad today announced that it had recorded a revenue growth of 15.4% to RM522.26 million for the first quarter ended May 31, 2024 (Q1FYE25), compared to RM452.67 million recorded in the preceding year’s corresponding quarter ended May 31, 2023 (Q1FYE24), driven by robust growth in loans and financing.

Aeon Credit’s transaction and financing volume for Q1FYE25 rose by 7.8% to RM1.98 billion as compared to RM1.83 billion recorded in Q1FYE24, driven by increased demand in Payment Business and Vehicle Financing due to strong market demand and effective strategic marketing campaigns.

Correspondingly, the gross financing receivables increased by 12.8% to RM12.65 billion in Q1FYE25 from the RM11.22 billion recorded in Q1FYE24. The Group remains focused on portfolio management and digitalising the onboarding process, resulting in improved asset quality. Non-Performing Loans (NPL) ratio reduced to 2.46% in Q1FYE25 as compared to 3.13% in Q1FYE24. The loan loss coverage ratio stood at 222%, compared to 227% in the corresponding quarter last year.

Aeon Credit registered both profit before tax (PBT) and profit after tax (PAT) of RM144.83 million and RM106.41 million respectively for the quarter under review, an increase of 9.8% and 7.1% as compared to Q1FYE24 respectively. The growth was driven by strong revenue expansion, partially offset by higher impairment losses on financing receivables and operating expenses.

Moving forward, the Group will remain vigilant in view of external headwinds, including existing geopolitical tensions, inflationary pressures, and ongoing volatility in the global financial markets. The Group will also continue to be prudent regarding operational costs management while maintaining its focus on managing credit risks within its financial portfolios.

Barring any unforeseen circumstances, the Group is optimistic that it will be able to maintain its business momentum by implementing appropriate measures for FYE2025.