KUALA LUMPUR (Sept 26): AEON Credit Service (M) Bhd’s net profit for the second quarter ended Aug 31, 2023 (2QFY2024) soared 59% to RM120.19 million from RM75.65 million reported in the same period last year, supported by higher transaction and financing volume.

Quarterly revenue surged 18.2% to RM471.73 million compared to RM399.17 million, mainly attributable to stronger loan and financing growth, its Bursa Malaysia filing showed on Tuesday.

Earnings per share rose to 45.10 sen, from 27.66 sen in 2QFY2022.

Meanwhile, the group also declared an interim dividend of 28.50 sen per share, to be paid on Nov 2.

For the six months period ended Aug 31, 2023 (1HFY2024), the group’s net profit declined slightly by 8.03% to RM219.55 million, against RM238.72 million, due to higher impairment losses on financing receivables.

Revenue, on the other hand, increased by 17.05% to RM924.40 million from RM789.74 million, fuelled by higher transaction and financing volume.

On a quarterly basis, AEON Credit’s 2QFY2024 net profit came in 21% higher from RM99.36 million reported in 1QFY2024, while revenue edged slightly higher by 4.2% to RM471.73 million, from RM452.67 million.

Looking ahead, the group said it remains cautious on the outlook for the second half of the financial year (2HFY2024) in view of prevailing economic headwinds, tightening policy rates to curb inflationary pressures, and volatility in the global banking industry and financial markets.

“Nevertheless, the group will continue to closely monitor its asset quality and assess the inherent credit risks in its financing portfolios, adopt prudent cost management, and improve on financial and operational efficiencies by leveraging on its positive business fundamentals.

“To fortify its long-term business sustainability, the group will continuously enhance its information technology capabilities to support its future growth,” it said.

Shares in AEON Credit closed four sen or 0.35% lower to RM11.44 on Tuesday, giving it a market capitalisation of RM2.92 billion.