KUALA LUMPUR: Aeon Credit Service (M) Bhd's net profit increased marginally by 0.2 per cent to RM75.65 million in the second quarter (Q2) ended August 31, 2021, from RM75.48 million recorded in the same quarter a year ago.
Its revenue increased 6.6 per cent to RM399.17 million from RM374.48 million.
In a statement today, Aeon Credit said the company's transaction and financing volume in Q2 FY23 increased 127.5 per cent to RM1.61 billion from RM708.83 million recorded in Q2 FY22 in tandem with improved business environment.
This was further supported by various marketing campaigns and merchant partnership programs deployed by the company to drive sales and financing receivables growth.
Correspondingly, the gross financing receivables increased by RM0.76 billion to RM10.38 billion in Q2 FY23 compared to RM9.62 billion.
Non-performing loans (NPL) ratio was 2.91 per cent in Q2 FY23 as compared to 2.24 per cent in Q2 FY22 while the loan loss coverage ratio stood at 276 per cent as compared to 343 per cent in the preceding year's corresponding quarter.
For the six-month period, Aeon Credit's net profit increased 0.1 per cent to RM238.72 million from RM238.58 million, while revenue increased 0.5 per cent to RM789.74 million from RM785.44 million.
"While we are focusing on digitalisation initiatives for better customer experience, the group remains on track to achieve its business growth for the second half year.
"However, Aeon Credit remains cautiously optimistic that its business revenue will gradually improve to pre-pandemic levels amid the expected economic recovery in Malaysia.
"Nevertheless, the group will continue to closely monitor and assess the inherent credit risks in its financing portfolios, with proactive attention focused on the enhancement of asset quality, prudent cost management and improvement on financial and operational efficiencies by leveraging on its positive business fundamentals," it said.
In respect of the financial year ending February 28, 2023, an interim single-tier dividend of 28.50 sen per share has been recommended by the board to be paid on November 3, 2022, with a dividend payout ratio of 30.48 per cent.