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Aeon Credit net profit for FY2023 rises to RM417.7mil

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The group says it remains cautiously optimistic that business sentiment will gradually improve to pre-pandemic levels.

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Free Malaysia Today
Aeon Credit Service (M) Bhd’s net profit for the financial year ended Feb 28, 2023 rose to RM417.69 million.

PETALING JAYA:
Aeon Credit Service (M) Bhd’s net profit for the financial year ended Feb 28, 2023 (FY2023) rose to RM417.69 million from RM365.42 million in the previous year.

Revenue increased 7.6% to RM1.64 billion from RM1.52 billion previously.

In a filing with Bursa Malaysia today, Aeon Credit said the total transaction and financing volume for the financial year-to-date grew by 31% to RM6.25 billion against the corresponding preceding year.

It noted that the group recorded a higher pre-tax profit of RM546.98 million for the financial year-to-date versus RM526.82 million in the preceding year-to-date.

“The increase was mainly due to the incremental rise in revenue and bad debt recoveries of RM115.37 million and RM25.3 million, respectively, coupled with the reduction in operating expenses of RM28.08 million.

“However, this was offset by higher impairment losses on financing receivables by RM144.55 million. Loan loss coverage ratio stood at 252% as at Feb 28, 2023 against 289% as at Feb 28, 2022,” it said.

The group announced a final single-tier dividend of 21 sen per share for FY2023.

Moving forward, Aeon Credit said it remained cautiously optimistic that business sentiment will gradually improve to pre-pandemic levels.

Nevertheless, the group said it will continue to closely monitor and assess the inherent credit risks in its financing portfolios, with proactive attention focused on enhancing asset quality, prudent cost management and improving financial and operational efficiencies by leveraging business fundamentals.

“The group remains vigilant and is committed to building its long-term business sustainability and will be continuously enhancing its information technology capabilities to support its growth.

“Barring any unforeseen circumstances, the group expects to be able to maintain its financial performance by putting in place the appropriate measures for the financial year ending Feb 29, 2024,” it added.

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