Aeon Credit 2Q profit up 10% to RM47.43 mil, declares 27.4 sen dividend

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KUALA LUMPUR (Sept 18): Aeon Credit Service (M) Bhd reported a near 10% increase in its net profit for the second quarter ended Aug 20, 2014 (2QFY15) to RM47.43 million from RM43.14 million recorded in the preceding year’s same quarter, its filing with Bursa Malaysia today showed.

Revenue for the quarter under review was RM209.32 million, 28.52% higher from 2QFY14’s RM162.87 million.

The group also declared an interim single-tier dividend of 27.40 sen per share, which will be paid on Oct 21.

The group said while the total transaction and financing volume of RM868 million in 2QFY15 was comparable year-on-year, its other operating income of RM12.06 million was 31.8% higher from last year.

“This is mainly contributed by an increase in bad debts recovered, and AEON Big loyalty programme’s processing fee,” Aeon Credit said in the filing.

“Ratio of total operating expenses against revenue was recorded at 59.6% in 2QFY15 compared to 55.9% in previous corresponding period, due mainly to higher impairment loss provision on financing receivables,” it added.

Meanwhile, its financing receivables as at August 2014 stood at RM4.12 billion, which was 35% higher compared with the same period last year. The non-performing loan ratio increased 1.01% to 2.65%.

As for the six months ended Aug 20, 2014 (6MFY15), Aeon Credit’s net profit stood at RM103.71 million or 72.02 sen per share, representing a 22.77% increase from 6MFY14’s RM84.48 million or 58.67 sen per share.

For the first half year period, revenue was RM410.22 million, up 33.73% from last year’s RM306.74 million; total transaction and financing volume was RM1.71 billion, which Aeon Credit said had grown by 3.4% from 6MFY14.

On its prospects for the remainder of FY15, Aeon Credit expects to be able to maintain its performance based on its business plan.

Aeon Credit's stock fell 28 sen or 1.67% to close at an intraday low of RM16.48 today, giving it a market capitalisation of RM2.37 billion.