KUALA LUMPUR: Aeon Credit Service (M) Bhd has announced an interim dividend of 28.5 sen a share, after net profit jumped almost 59 per cent for the second quarter ended August 31, 2023 to RM120.2 million.
Total transaction and financing volume in the quarter of RM1.8 billion was higher by 11.0 per cent as compared with the preceding year's corresponding quarter.
Revenue for the quarter was 18 per cent higher at RM471.7 million, compared with RM399.2 million for the quarter ended August 31, 2022, on stronger loan and financing growth.
The ex-date for the interim dividend of 28.50 sen per share for the financial year ending February 29, 2024 is on October 12, 2023. The dividend will be paid out on November 2, 2023.
"The group remains cautious on the outlook for the second half of the financial year in view of prevailing economic headwinds, tightening policy rates to curb inflationary pressures and volatility in the global banking industry and financial markets.
"Nevertheless, the group will continue to closely monitor its asset quality and assess the inherent credit risks in its financing portfolios, adopt prudent cost management and improve on financial and operational efficiencies by leveraging on its positive business fundamentals," Aeon Credit said in its filing with Bursa Malaysia Securities.
To fortify its long-term business sustainability, the group will continuously enhance its information technology capabilities to support its future growth.
Net profit for the six month period ended August 31, 2023 however was eight per cent lower due to the higher impairment losses on financing receivables by RM85.9 million.
Aeon Credit reported a net profit of RM219.6 million for the period, compared with RM238.7 million for the same period in 2022.
Revenue was 17 per cent higher at RM924.4 million for the first six months of financial year 2023.
The company's loan loss coverage ratio fell to 219 per cent as at August 31, 2023 as compared to 276 per cent as at August 31, 2022.
The net financing receivables after allowance for impairment loss was RM10.8 billion as at August 31, 2023, compared with RM9.547 billion as at August 31, 2022.
Non performing loans ratio was 2.98 per cent as at August 31, 2023 as compared with 2.91 per cent as at August 31, 2022.
The company's share price closed four sen lower to RM11.44 today.
