Aeon Credit posts better earnings in third quarter
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Aeon Credit Service (M) Bhd’s net profit for the third quarter ended Nov 30, increased 23.5% to RM87.14 million from RM70.55 million a year ago, attributed to lower impairment loss on financing receivables. Revenue for the period increased 11.6% to RM348.5 million from RM312.35 million.
For the nine-month period, the group reported a 22.62% rise in net profit to RM267.01 million from RM217.75 million. Revenue was up by 8.7% to RM1.01 billion from RM925.95 million.
Aeon Credit told Bursa Malaysia that its gross financing receivables as at Nov 30 was RM8.31 billion, representing an increase of 15.41% from RM7.2 billion a year ago. Meanwhile, net financing receivables after impairment was RM7.74 billion compared with RM7.03 billion a year ago.
Its non-performing loan ratio stood at 2.05% as at Nov 30, 2018 versus 2.48% as at Nov 30, 2017.
Total transaction and financing volume in the current quarter and nine months ended Nov 30 increased by 49.5% to RM1.5 billion and by 26.4% to RM3.9 billion respectively.
Questions & Answers
Q.What is the main reason for Aeon Credit's increased net profit in the third quarter?
What is the main reason for Aeon Credit's increased net profit in the third quarter?
The company attributed its 23.5% rise in net profit for the quarter to a lower impairment loss on financing receivables. This reduction in anticipated bad debts helped boost the overall financial performance.
Q.How do the current non-performing loan figures compare to the previous year?
How do the current non-performing loan figures compare to the previous year?
As of November 30, the non-performing loan ratio was 2.05%. This represents an improvement from the 2.48% recorded at the same point in the previous year, indicating better asset quality.
Q.By how much did the company's gross financing receivables grow over the past year?
By how much did the company's gross financing receivables grow over the past year?
Gross financing receivables increased by 15.41% to RM8.31 billion as at November 30. This is up from RM7.2 billion reported a year ago, reflecting significant growth in its loan book.
Q.What was the total transaction and financing volume for the nine-month period?
What was the total transaction and financing volume for the nine-month period?
For the nine months ended November 30, the total transaction and financing volume increased by 26.4% to RM3.9 billion. This indicates strong activity and customer engagement over the longer term.