AEON Credit’s net profit improves 5.5% to RM51.8m in 2Q20

by BERNAMA / pic by TMR FILE 

CONSUMER financing provider AEON Credit Service (M) Bhd’s net profit edged up 5.5 % to RM51.81 million in the second quarter ended Aug 31, 2020 (2Q20), compared to RM49.13 million in the same quarter last year.

However, revenue fell 10% to RM363.97 million from RM404.45 million previously.

In a filing to Bursa Malaysia yesterday, it said total transaction and financing volume in the quarter under review declined 38.4% to RM962.39 million, while gross financing receivables increased RM662.84 million to RM10.25 billion compared to Aug 31, 2019.

It said non-performing loan ratio stood at 1.95% as of Aug 31, 2020, compared to 2% a year ago, while other income was recorded at RM41.69 million for the quarter, mainly comprising bad debts recovered and insurance commission.

For the six-month period, net profit went down to RM78.09 million from RM133.73 million in the same period last year, while revenue slipped to RM753.84 million from RM783.03 million previously.

Going forward, it said the company has taken actions to put the necessary measures in place to face the imminent challenges in addtion to the implementation of additional measures directed by Bank Negara Malaysia to assist borrowers and customers experiencing financial constraints due to the Covid-19 outbreak.

AEON Credit Service said the ongoing pandemic is expected to have a negative bearing on the company’s financial performance and results for the financial year.

“The extent of the financial impact on the company is difficult to assess at this time in light of prevailing uncertainties over the severity and when the pandemic will end,” it said.

It added that the company will continue to closely monitor and assess the inherent credit risk in its financing portfolio, with focus of action being on enhancement of asset quality, prudent cost and cash management, and improvement on financial and operational efficiencies by leveraging its positive business fundamentals and extensive customer reach.

AEON Credit Service declared an interim dividend of 9.2 sen per share for the financial year ending Feb 28, 2021, to be paid on Nov 5, 2020, with the total amount payable being RM23.48 million.