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Aeon Credit earnings up 23.5% in the third quarter

PETALING JAYA: Aeon Credit Service (M) Bhd’s earnings rose 23.5% year-on-year (y-o-y) in the third quarter ended Nov 30 on the back of higher total transaction and financing volume.

The consumer financing provider told the stock exchange yesterday that its net profit in the three-month period was up to RM87.14mil, compared to RM70.55mil in the same quarter a year earlier.

Revenue increased 11.57% y-o-y to RM348.5mil.

“The funding cost for the current quarter was higher as compared to the preceding corresponding quarter mainly due to higher borrowings in line with the growth of receivables.

Aeon Credit did not declare any dividend for the quarter in review. Earnings per share was at 33.35 sen.

For the first nine months of financial year 2019, the company’s bottom line showed improvement as it increased by almost 23% y-o-y to RM267.01mil.

This was driven by a stronger top line in the nine-month period, with revenue rising 8.7% y-o-y to RM1.01bil. A year earlier, Aeon Credit had recorded RM925.95mil in the same period.

Commenting on its prospects for the current financial year, Aeon Credit expects its performance to be sustained.

“The Malaysian economy posted a gross domestic product growth of 4.4% in the third quarter of 2018, while the annual economic growth forecast for 2018 is at 4.7% by the World Bank. Domestic demand will be the key driver for growth and household spending is likely to be supported by growth in income and employment.

“The company expects to be able to maintain its financial performance for the financial year ending Feb 28 based on the scheduled implementation of its business plan,” it said.

Source: TheStar