KUALA LUMPUR (July 10): Aeon Credit Service (M) Bhd's (KL:AEONCR) net profit for its first financial quarter ended May 31, 2024 (1QFY25) rose marginally by 7.1% year-on-year supported by stronger loan and financing growth.

Net profit for 1QFY25 stood at RM106.41 million compared with RM99.36 million in the previous year's corresponding quarter, as revenue rose 15.4% to RM522.26 million from RM452.67 million previously, its filing on the local bourse showed.

Total transaction and financing volume during the quarter was 7.8% higher at RM1.98 billion.

Meanwhile, Aeon Credit managed to reduce its non-performing loans (NPL) to 2.46% as at May 31, 2024 compared with 3.13% a year prior, resulting from "positive actions taken". Besides that, other income during the quarter was recorded at RM67.57 million mainly due to bad debt recoveries.

No dividend was proposed or declared for the quarter.

Moving forward, the group said it maintains a cautious stance due to existing geopolitical tensions, inflationary pressures and ongoing volatility in global financial markets.

Aeon Credit said it places emphasis on growing quality assets and closely monitoring the inherent credit risks in its financing portfolios.

"The Group will continuously enhance its information technology capabilities to improve on operational efficiencies while establishing an ecosystem to be built from the AEON Group of Companies operating in Malaysia to expand on its customer reach," it added.

Shares in Aeon Credit closed two sen or 0.28% higher at RM7.24 on Wednesday, giving it a market capitalisation of RM3.7 billion.