KUALA LUMPUR: Aeon Credit Service (M) Bhd’s net profit dropped to RM292.05 Million in the year ended February 29, 2020 (FY20) from RM354.62 million a year ago.
In an exchange filing today, Aeon Credit said this dragged by higher impairment losses.
Its FY20 revenue rose 14.3 per cent to RM1.60 billion from RM1.40 billion on the back of higher total transaction and financing volume.
For the fourth-quarter (Q4FY20), Aeon Credit’s net profit grew 0.9 per cent to RM88.39 million from RM87.61 million, while revenue increased 14.9 per cent to RM413.28 million from RM359.54 million.
In a separate statement, the company said its total transaction and financing volume in Q4FY20 increased 17.5 per cent to RM1.646 billion year-on-year (YoY).
Its gross financing receivables in Q4FY20 increased RM1.702 billion to RM10.395 billion from RM8.692 billion recorded in the same period a year ago.
As at February 29, 2020, Aeon Credit’s non-performing loans ratio stood at 1.92 per cent compared to 2.04 per cent a year ago, under continuous prudent approach on asset quality strategies.
The company declared a final single-tier dividend 14 sen per share for FY20, payable on July 16.
Aeon Credit managing director Yuro Kisaka said domestic demand would likely continue to be key driver, as household spending might be supported by the government in driving the economic demand.
“Nevertheless, downside risks are expected to continue to dominate the trade outlook for the country given the unfavourable economic conditions from the Covid-19 pandemic.
“Taking consideration of the pandemic affecting business in a global scale, not excluding the essential services industry and Movement Control Order imposed by the government, business and operations will be affected for most part of the year,” he said in a statement today.
He added that the company had taken necessary measures to face the imminent challenges following the implementation of additional measures by Bank Negara Malaysia to help borrowers and customers who experience financial constraints from the pandemic.
“Moving forward, taking full consideration of the Covid-19 pandemic and the uncertainties which lies ahead, we will continue to remain prudent and cautious, placing emphasis on growing quality assets as well as enhancing financing and operational efficiency by leveraging on its business fundamentals based on the scheduled implementation of our business plan,” he added.
