Aeon Credit Service Q3 net profit up 25.66%

PETALING JAYA: Aeon Credit Service (M) Bhd's net profit for the third quarter ended Nov 30, 2016 rose 25.66% to RM67.05 million from RM53.36 million a year ago while revenue rose 14.06% to RM280.35 million from RM245.78 million a year ago.
In a filing with Bursa Malaysia yesterday, the company said its total transaction and financing volume during the quarter rose 12.58% to RM1.037 billion.
"The financing receivables as at Nov 30, 2016 was RM6.213 billion, representing an increase of 20.66% from RM5.149 billion as at Nov 30, 2015. Non-performing loans ratio was 2.33% as at Nov 30, 2016 compared with 2.68% as at Nov 30, 2015," it said.
During the quarter, other operating income stood at RM28.416 million, comprising mainly bad debts recovered, commission income from sale of insurance products and AEON Big loyalty programme processing fees.
Ratio of total operating expense against revenue was recorded at 59.52% for the quarter compared with 63.30% a year ago. The decrease was mainly attributable to higher growth in interest income and lower allowance for impairment losses on receivables.
For the nine months ended Nov 30, 2016, net profit rose 15.54% to RM184.97 million from RM160.09 million a year ago while revenue rose 14.74% to RM811.11 million from RM706.94 million a year ago.
Total transaction and financing volume during the period increased by 13.73% to RM3.023 billion from a year ago while other operating income for the period stood at RM81.002 million.
Moving forward, the company expects to maintain its current financial performance for the financial year ending Feb 28, 2017 despite challenges in the economy.