AEON Credit Service (M) Bhd, Malaysia’s leading consumer financing provider, has its strong asset quality and business recovery activities to thank for in enabling the company’s financial year ended Feb 28, 2022 (FYE2/2022) to end on a positive note.
As shared by the company’s chairman Ng Eng Kiat at its 25th annual general meeting (AGM) yesterday (June 29), the past two years have shown that its financial performance can be vulnerable to external forces that caused major disruptions to business operations and supply chain flows.
“In response, the company has taken the necessary action to re-shape our business portfolio, improving on cost efficiencies and enhancing our technological abilities in order to continue serving our customers during the pandemic,” he pointed out.
Despite the challenging market condition, AEON Credit Service’s overall performance for FYE2/2022 ended on a positive note.
Its total transaction and financing volume achieved 12.8% of growth at RM4.8 bil, driven by revenge consumption after economic reopening and proactive marketing and promotions activities.
In fact, AEON Credit’s net profit hit a record of RM365.4 mil with 56.2% improvement, attributed to lower impairment loss and prudent cost management. The company’s cost to income ratio stood at 49.7%, 10.3% lower compare to last year.
For its FYE2/2022, the company’s board has recommended the payment of a final single-tier dividend of 15 sen/share and a special single-tier dividend of 5 sen/share in conjunction with its 25th Anniversary to be paid on July 21.
Meanwhile, managing director Daisuke Maeda said AEON Credit will continue to position itself as the most preferred non-bank financial services provider in Malaysia.
“I believe that we are positioned to grow our business further through our digital transformation and infrastructure,” he noted.
“We will continue to deliver our best for our customers by ensuring sustainable growth for the company while also creating value for the community that we serve as well as giving back to all our loyal shareholders.”
Aiming to become a comprehensive retail finance company that offers great customer experience and provide valuable services through the AEON Group platform, the company will embed sustainability elements into its business model to promote strong ESG (environmental, social and governance) practice, added Maeda.
At the close of yesterday’s (June 29) trading, AEON Credit was unchanged at RM13.58 with 38,400 shares traded, thus valuing the company at RM3.47 bil. – June 30, 2022
