This article first appeared in The Edge Financial Daily on June 29, 2018

KUALA LUMPUR: AEON Credit Service (M) Bhd's net profit jumped 30.9% to RM99.24 million for the first financial quarter ended May 31, 2018 (1QFY19) from RM75.81 million a year ago, mainly due to an increase in financing receivables.

As a result, earnings per share was higher at 38.43 sen for 1QFY19 compared with 28.98 sen for 1QFY18. Quarterly revenue grew 7.8% to RM325.72 million from RM302.28 million a year ago.

In a filing with Bursa Malaysia yesterday, AEON Credit said financing receivables were RM6.92 billion as at May 31, 2018, up 3.8% from RM6.67 billion as at May 31, 2017. Non-performing loan ratio was 2.26% as at May 31, 2018, down from 2.43% a year ago.

Other income was recorded at RM29.25 million for 1QFY18, mainly comprising bad debts recovered, commission income from sale of insurance products and loyalty programme processing fees. Total transaction and financing volume rose to RM1.1 billion in 1QFY19 against RM1.05 billion a year ago.

On prospects, AEON Credit said it expects to be able to maintain its financial performance for the financial year ending Feb 28, 2019 based on the scheduled implementation of its business plan. "The group is also confident that the current economic landscape will spur further growth for our business, strongly driven by domestic demand and household spending.”