Aeon Credit's 4Q net profit climbs 28.66% on lower operating expenses

Aeon Credit's 4Q net profit climbs 28.66% on lower operating expenses
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KUALA LUMPUR (April 8): Aeon Credit Service (M) Bhd’s net profit for the fourth quarter ended Feb 28, 2021, rose 28.66% to RM113.72 million from RM88.39 million a year ago, despite lower revenue, as it recorded lower operating expenses.

Quarterly revenue slipped 1.68% to RM406.35 million from RM413.28 million, Aeon Credit's bourse filing today showed, due to lower transactions and financing volume amid the Movement Control Order (MCO). The group proposed a final dividend of 20 sen for the latest quarter, which will be paid on July 15.  

The group said its ratio of total operating expenses against revenue was recorded at 53.1% for the current quarter versus 60.4% in the preceding year corresponding quarter. “The decrease in operating expenses was mainly due to lower impairment losses on financing receivables of RM65.13 million compared with RM87.81 million for the preceding year's corresponding quarter,” it said.

For the full FY21, however, the group’s net profit was down 19.89% to RM233.96 million from RM292.05 million a year earlier, mainly due to lower annual revenue and a higher allowance of RM58.11 million for impairment losses, occasioned by the effects of Covid-19 pandemic. Annual revenue slid 2.32% to RM1.56 billion from RM1.6 billion as its fee income came in RM36.51 million lower in line with weaker transaction and financing volume.

Going forward, the group expects to be able to maintain its financial performance in FY22.

“The company will continue to closely monitor and assess the inherent credit risks in its financing portfolio, with proactive attention focused on enhancement of asset quality, prudent cost management and improvement on financial and operational efficiencies by leveraging on its positive business fundamentals.

“The company is committed in its business sustainability agenda and will be continuously investing in information technology to drive its digitalisation initiative,” it added.

Aeon Credit shares closed 10 sen or 0.81% higher at RM12.40 today, valuing the group at RM3.17 billion.

Tan Choe Choe