Aeon Credit earnings up 5% in Q3

PETALING JAYA: Aeon Credit Service (M) Bhd net profit for the third quarter ended Nov 30, 2017 rose 5.2% to RM70.55 million from RM67.05 million a year ago, on higher interest income, profit revenue and finance.
Its revenue jumped 11.4% to RM312.35 million compared with RM280.35 million in the previous year’s corresponding quarter.
Ratio of total operating expense against revenue was recorded at 60.9% for the current quarter as compared to 59.5% in the quarter ended Nov 30, 2016. The increase was due to increase in operating expenses.
For the nine months period, net profit increased 17.7% to RM217.75 million from RM184.97 million a year ago, while revenue grew 14.2% to RM925.95 million compared with RM811.11 million in the previous year’s period.
Total transaction and financing volume in the third quarter and nine months recorded RM955 million and RM3.08 billion respectively as compared with the previous corresponding period ended Nov 30, 2016.
The financing receivables as at Nov 30, 2017 was RM7.03 billion, representing an increase of 13.2% from RM6.21 billion as at Nov 30, 2016. Non-performing loans ratio was 2.48% as at Nov 30, 2017 compared to 2.33% as at Nov 30, 2016.
Other operating income was recorded at RM29.49 million and RM87.537 million for the current quarter and nine months respectively, mainly comprising bad debts recovered, commission income from sale of insurance products and loyalty programme processing fees.
The company expects to be able to maintain its financial performance for the year ending Feb 28, 2018 based on the scheduled implementation of its business plan.
Aeon Credit closed up 1.92% to RM13.80 today with 118,900 shares done.