NON-bank financial services provider AEON Credit Service (M) Bhd has posted a 15.4% surge in revenue for its 1Q FY5/2024 ended May 31, 2024 to RM522.26 mil from RM452.67 mil in the same period a year ago driven by robust growth in loans and financing.
AEON Credit’s transaction and financing volume during the period under review rose by 7.8% to RM1.98 bil from RM1.83 bil recorded in 1Q FYE5/2024 driven by increased demand in payment business and vehicle financing due to strong market demand and effective strategic marketing campaigns.
As such, both the group’s pre-tax and net profits came in at RM144.83 mil and RM106.41 mil respectively for the 1Q FY5/2024 period, marking an increase of 9.8% and 7.1% year-on-year (yoy) respectively from the previous financial period.
The growth was driven by strong revenue expansion which was partially offset by higher impairment losses on financing receivables and operating expenses.
Prospects
Moving forward, AEON Credit said it will remain vigilant in view of external headwinds, including existing geopolitical tensions, inflationary pressures and ongoing volatility in the global financial markets.
“The group will also continue to be prudent regarding operational costs management while maintaining its focus on managing credit risks within its financial portfolios,” revealed AEON Credit in a media statement.
To meet the evolving customer demands and as it continues to enhance seamless customer experiences, AEON Credit has further unveiled its upgraded version of AEON Wallet today (July 10) with features upgrade to be rolled out in phases.
The AEON Wallet app aims to promote digital financing applications and allow customers to digitally register their membership with a proprietary wallet account that includes a point collection feature.
In its quest to penetrate middle-income group customers and improve customer quality, AEON Credit said plans are afoot to launch its first two integrated branch operations with premium lounge at Setia City Mall and IOI City Mall respectively.
“These branches are designed to provide seamless access to exclusive services within a welcoming environment for our esteemed customers,” revealed the group. “Furthermore, the grand launch of our associate company, AEON Bank (M) Bhd, on May 26 aims to strengthen the group’s financial inclusivity.”
These initiatives are geared towards supporting the development of AEON Living Zone, an ecosystem built within AEON Group to provide comprehensive lifestyle and financial services solutions to the community which is in line with the group’s purpose in bringing finance closer to everyone.
At the close of today’s trading AEON Credit was up 2 sen or 0.28% to RM7.24 with 251,000 shares traded, thus valuing the company at RM3.7 bil. – July 10, 2024
