KUALA LUMPUR (Oct 4): Aeon Credit Service (M) Bhd's net profit rose 13% to RM80.64 million in the second financial quarter ended Aug 31, 2018 (2QFY19), from RM71.39 million a year ago, as its total transactions and financing volume grew. 

As a result, earnings per share was higher at 31.03 sen for 2QFY19 compared with 27.30 sen for 2QFY18, its bourse filing today showed. Quarterly revenue grew 7% to RM332.09 million from RM311.32 million a year ago.

The company declared an interim single-tier dividend of 22.25 sen per share, with ex-date and entitlement date set on Oct 16 and Oct 18 respectively. The dividend will be paid on Nov 8. 

For the cumulative six months (1HFY19), Aeon Credit's net profit jumped 22% to RM179.88 million from RM147.20 million a year ago, while revenue grew 7% to RM657.81 million from RM613.60 million in 1HFY18.

Aeon Credit said the achieved better quarterly and six months performances were due to a 27% year-on-year increase in total transactions and financing volume to RM1.30 billion for 2QFY19, and a a 15% y-o-y growth to RM2.40 billion in 1HFY19.

As at Aug 31, 2018, the company's gross financing receivables grew 11.5% from RM7.05 billion a year ago to RM7.86 billion, while net financing receivables after impairment rose to RM7.25 billion from RM6.88 billion previously; non-performing loans (NPL) ratio slid to 2.07% from 2.48% in the same period.

Other operating income was recorded at RM48.32 million for 2QFY19 and RM77.58 million for 1HFY19, mainly comprising recovered bad debts, commission income from the sale of insurance products, and loyalty programme processing fee.

Aeon Credit said there was an increase in the ratio of its total operating expense against its revenue, from 59.3% in 2QFY18 to 63.8% in 2QFY19, due to higher operating expenses.

The company said funding cost for the quarter under review was higher due to the increase in borrowings, where nominal value of borrowings stood at RM5.85 billion, versus RM5.62 billion from a year ago. 

Moving forward, Aeon Credit expects to maintain its financial performance for the financial year ending Feb 28, 2019 (FY19).

Aeon Credit shares closed 16 sen or 1.02% higher at RM15.86 today, giving it a market capitalisation of RM3.97 billion.