08-07-2025
Aeon Credit net profit falls 27% to RM77.5mil in 1Q
PETALING JAYA: Aeon Credit Service (M) Bhd maintains a cautious business stance due to ongoing global trade and tariff policy uncertainties, prevailing geopolitical tensions, inflationary pressures and volatility in global financial markets.
For the first quarter ended May 31, 2025 (1Q26), Aeon Credit saw a 27% year-on-year (y-o-y) decline in its net profit to RM77.5mil or earnings per share of 15.19 sen due to higher operating and interest expense, lower other income and higher losses from associate.
Revenue, on the other hand, was up by 15% y-o-y to RM599.92mil, mainly attributable to stronger loan and financing growth.
In 1Q26, the group said non-performing loans (NPL) ratio increased to 2.57% as at May 31, 2025 as compared to 2.46% as at May 31, 2024, and corrective actions have been taken to address the NPL ratio increase.
Loan loss coverage ratio remained healthy at 217% as at May 31, 2025, but was marginally lower than the 222% recorded as at May 31, 2024. The ratio of total operating expenses against revenue for 1Q26 also rose to 68.5% as compared with 63.5% in 1Q25, mainly due to higher impairment losses on financing receivables.
In a filing with Bursa Malaysia, the group said it will continue to remain prudent, placing emphasis on growing quality assets and closely monitoring the inherent credit risks in its financing portfolios.
Nonetheless, barring unforeseen circumstances, the group expects to be able to sustain its business momentum by implementing the appropriate measures for the financial year ending Feb 28, 2026.
