Friday 29 Mar 2024
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KUALA LUMPUR (Dec 23): AEON Credit Services Bhd said its third quarter net profit jumped 145.5% to RM103.46 million from RM42.15 million a year earlier, on lower financing receivables after allowance for impairment losses.

Earnings per share for the quarter ended Nov 30, 2021 (3QFY22) spiked to 40.53 sen from 16.51 sen, the group’s bourse filing showed.

The sharply higher earnings came despite revenue falling to RM276.47 million from RM401.48 million a year prior.

No dividend was declared for the quarter but the consumer finance group had so far returned 28.5 sen to its shareholders, compared with 9.2 sen last year.

The group said its total transaction and financing volume fell 2.9% to RM1.19 billion, from RM1.22 billion in the same quarter last year, due to the staggered implementation of the National Recovery Plan in October and November .

The gross financing receivables as at Nov 30, 2021 of RM9.61 billion was lower by RM616.67 million compared with the figure on Nov 30, 2020.

The net financing receivables after allowance for impairment loss was RM8.92 billion compared with RM9.29 billion previously.

The non-performing loans ratio on Nov 30, 2021 was 1.75%, compared with 2.88% a year earlier.

“Ratio of total operating expenses against revenue was recorded at 48.3% for the current quarter compared with 73.3% in the corresponding preceding year quarter.

“The decrease in operating expenses was mainly due to lower impairment losses on financing receivables of RM33.09 million compared with RM156.91 million for the corresponding preceding year quarter, partially offset by higher operating expenses,” said AEON Credit.

It added that the funding cost for the current quarter was lower as there were reduced borrowings and lower cost of funds. Its current nominal value of borrowings stood at RM7.52 billion compared with RM7.8 billion previously.

AEON Credit recorded a 27.5% increase in its other income segment at RM50.46 million mainly due to improved bad debt recoveries, insurance commission and interest/profit income from deposits with licensed financial institutions.

On a quarter-on-quarter basis, AEON Credit managed to improve its net profit by 37.1% from RM75.48 million in the immediate preceding quarter, while revenue was marginally better by 0.5% from RM374.48 million due to lower impairment losses.

For the nine months ended Nov 30, 2021, AEON Credit reported a 184.5% surge in net profit to RM342.04 million from RM120.24 million in the same period last year, while revenue inched up 0.6% to RM1.16 billion from RM1.15 billion amid higher interest income and reduced allowance for impairment losses.

AEON Credit expects to be able to achieve an improved financial performance for the full financial year.

Shares of AEON Credit closed 22 sen or 1.68% higher at RM13.30 on Thursday (Dec 23), giving the group a market capitalisation of RM3.4 billion.

Edited ByS Kanagaraju
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