6 days ago
- Business
- New Straits Times
Aeon Credit's Q1 net profit falls 27pct on losses from digital bank
KUALA LUMPUR: Aeon Credit Service (M) Bhd's net profit fell by 27.1 per cent to RM77.55 million in the first quarter (1Q) ended May 31, 2025, from RM106.41 million a year ago. This was largely due to a RM15.92 million loss from its associate, Aeon Bank.
The group said in a statement today that Aeon Bank's losses were a result of ongoing investments in product development, IT infrastructure, and operating expenses, which align with its roadmap to deliver differentiated digital banking products.
"These are upfront investments in technology, talent, and marketing to support long-term growth," it said.
However, Aeon Credit's quarterly revenue improved to RM599.92 million from RM522.26 million previously, driven by stronger loan and financing growth.
Earnings per share fell to 15.19 sen from 20.84 sen in 1Q 2025.
Meanwhile, Aeon Credit recorded a 13.9 per cent growth in total transaction and financing volume, reaching RM2.25 billion in 1Q 2026 from RM1.98 billion in 1Q 2025.
The group said this growth was underpinned by its continued strategic expansion into the middle-income segment.
Targeted marketing campaigns have improved both the payment business and personal financing, with growth of 22 per cent and 23 per cent respectively compared to the corresponding quarter last year.
Correspondingly, gross financing receivables rose to RM14.63 billion, an increase of 15.6 per cent year-on-year, driven by the payment business, personal financing, and vehicle financing.
The group's non-performing loans ratio improved to 2.57 per cent, down from 2.64 per cent as of February 2025.
On prospects, Aeon Credit said it continues to adopt a cautious approach in its business operations and remains prudent, focusing on growing quality assets via middle-income segment expansion while closely managing credit risks within its financing portfolios.
The group said it is also strengthening its digital infrastructure to enhance operational efficiency and build a customer-centric ecosystem through the Aeon Living Zone.
Ongoing collaborations within the group aim to deepen customer engagement, expand market reach, and strengthen brand loyalty through a unified digital ecosystem.
"Looking ahead, barring any unforeseen developments, Aeon Credit remains cautiously optimistic about sustaining resilient business performance for the financial year ending Feb 28, 2026.
"The group will continue to prioritise operational efficiency and pursue strategic investments, including in technology, to drive long-term sustainable growth," it said.
