PETALING JAYA: Aeon Credit Service (M) Bhd’s net profit for the first quarter ended May 31, 2023 (Q1 FY2024) decreased 39.1% to RM99.36 million from RM163.07 million in the same period a year earlier.
Revenue, however, increased 15.9% to RM452.67 million from RM390.57 million previously, mainly attributed to stronger loan and financing growth, the consumer financial services said in a filing with Bursa Malaysia today.
Profit before tax was down 38.8% to RM131.91 million compared to the same quarter in the previous year, mainly due to higher impairment losses on financing receivables.
Aeon Credit said it remains cautious on the year’s outlook in view of prevailing economic headwinds, tightening policy rates to curb inflationary pressures and volatility in the global banking industry and financial markets.
Nevertheless, it said the company would continue to closely monitor its asset quality and assess the inherent credit risks in its financing portfolios, adopt prudent cost management and improve on financial and operational efficiencies by leveraging on its positive business fundamentals.
It said to fortify its long-term business sustainability, the company would continuously enhance its information technology capabilities to support its future growth.
Barring any unforeseen circumstances, Aeon Credit said it expected to be able to maintain its financial performance by putting in place the appropriate measures for the financial year ending February 29, 2024.
It added that there were no dividends paid during the quarter under review.
At market close today, Aeon Credit’s share price was flat at RM11.18, giving the company a market capitalisation of RM2.85 billion.