KUALA LUMPUR (April 8): Aeon Credit Service (M) Bhd's net profit rose 24.7% to RM118.92 million for its fourth quarter ended Feb 29, 2024 (4QFY2024), up from RM95.34 million a year ago, on the back of higher revenue. Earnings per share rose to 22.32 sen from 17.67 sen.

Revenue increased 15.9% to RM501.58 million from RM432.66 million in 4QFY2023, mainly attributable to stronger loan and financing growth, according to the group’s exchange filing on Monday.

Notably, the group's non-performing loans ratio reduced to 2.57% as at Feb 29, compared with 2.89% a year earlier, the group said, citing "positive actions taken."

Aeon Credit declared a final dividend of 14 sen to be paid on July 25, bringing the total dividend payout to 42.5 sen for FY2024, versus 49.5 sen in FY2023.

For the full year, net profit saw a flat growth of 1.5% to RM424.02 million from RM417.69 million in FY2023, as the group incurred higher operating expenses mainly due to higher impairment losses, coupled with an increase in interest expenses.

Full-year revenue increased 16.6% to RM1.91 billion from RM1.64 billion previously.

Moving forward, Aeon Credit said it remains cautious about its outlook due to rising geopolitical tensions, inflationary pressures and prevailing volatility in the global financial markets.

"Nevertheless, the group will continue to remain prudent and cautious, placing emphasis on growing quality assets and closely monitoring the inherent credit risks in its financing portfolios," it said.

Additionally, Aeon Credit plans to enhance its information technology capabilities for operational efficiency and expand its customer reach through the Aeon Living Zone ecosystem. With appropriate measures in place, the group expects to maintain its business momentum for FY2025.

Shares in Aeon Credit settled six sen or 0.92% higher at RM6.61, giving the group a market capitalisation of RM3.38 billion.