AEON Credit Service (M) Bhd increased its net profit by 45.7 percent to RM75.48 million in the second fiscal quarter ended August 31, 2021 (2QFY22) from RM51.81 million a year ago, owing to lower operating and interest expenditures.
Earnings per share increased to 27.59 sen in 2QFY22 from 18.31 sen a year ago.
Operating expenses decreased to RM225.76 million in 2QFY22 from RM236.65 million in 2QFY21, owing mostly to reduced impairment losses on financing receivables of RM92.27 million versus RM112.01 million. Funding costs were also lower, owing to fewer borrowings and a lower cost of capital.
Borrowings were at RM7.88 billion in nominal terms as of Aug 31, 2021, down from RM8.06 billion in nominal terms as of Aug 31, 2020.
Quarterly revenue increased 2.89 percent year on year to RM374.48 million in 2QFY22 from RM363.97 million a year ago.
The group issued a 28.5 sen interim dividend for the fiscal year ending February 28, 2022 (FY22), payable on November 3.
On a quarterly basis, however, AEON Credit’s net profit plummeted 53.7 percent to RM163.09 million from RM163.09 million in 1QFY22, while revenue declined 8.9 percent to RM410.97 million.
It attributed the decreased profitability to revenue contraction and lower other income as a result of the government’s numerous lockdown measures, which hampered the company’s and merchants’ business operations nationally.
Additionally, the reduced earnings were attributable to increased impairment losses of RM92.23 million in the current quarter, up from RM23.25 million in the preceding quarter.
For the first half of FY22 (1HFY22), its cumulative net profit increased by a whopping 205.5 percent to RM238.58 million from RM78.09 million a year ago, owing to higher sales and a RM170.86 million decrease in provision for impairment losses. Revenue increased 4.19 percent year on year (y-o-y) to RM785.44 million from RM753.85 million in the preceding fiscal year.
AEON Credit anticipates maintaining its financial performance in FY22.
AEON Credit’s shares slid 12 sen or 1% to RM11.88 on Tuesday, giving the company a market value of RM3.03 billion.
Published by Zack Baharum