AEON Credit 3Q earnings increase to RM85.5mil

PETALING JAYA: AEON Credit Service (M) Bhd intends to improve its efficiency, productivity and enhance customers’ experience through its ongoing digitalisation initiatives across its operation and processes.

For its third quarter ended Nov 30, 2023 of financial year 2024 (3Q24), the local non-bank financial services provider’s net profit rose by 2% year-on-year (y-o-y) to RM85.5mil, or an earnings per share of 16.75 sen. Revenue grew by 16% y-o-y to RM486.5mil due to stronger loan and financing growth.

In a statement, AEON Credit said this was on the back of a 17.8% increase in total transaction and financing volume to RM1.82bil in 3Q24 as compared to RM1.55bil in 3Q23.

For the nine-month period ended Nov 30, 2023 (9M24), AEON Credit’s transaction and financing volume was higher by 17.2% at RM5.4bil as compared to the RM4.6bil recorded in 9M23.

The group’s gross financing receivables increased by RM1.31bil or 12.4% in 9M24 to RM11.90bil as compared to RM10.60bil in 9M23. The non-performing loan ratio stood at 2.73% as of Nov 30, 2023.

Going forward, AEON Credit said it will remain vigilant by proactively monitoring its asset quality, prudently managing its credit risks in its financing portfolios and its operational cost in tandem with its balanced approach in revenue growth.

Moreover, AEON Credit said it had launched the digital onboarding for instant conditional approval backed by e-KYC solutions and scoring models to acquire good score customers strategically.

The group noted the introduction of e-signature for personal financing had also enabled end-to-end digital onboarding, where the turnaround time has been improved and leading to an increase in online application.

Additionally, in order to improve the approval ratio, AEON Credit said it will be leveraging the artificial intelligence-based credit scoring service to optimise and enhance the application process.

The group will also adopt a risk-based collection approach that focuses on high-risk customers to improve the productivity and collection performance.