Latest news with #AeonBank
New Straits Times
08-07-2025
- Business
- New Straits Times
Aeon Credit's Q1 net profit falls 27pct on losses from digital bank
KUALA LUMPUR: Aeon Credit Service (M) Bhd's net profit fell by 27.1 per cent to RM77.55 million in the first quarter (1Q) ended May 31, 2025, from RM106.41 million a year ago. This was largely due to a RM15.92 million loss from its associate, Aeon Bank. The group said in a statement today that Aeon Bank's losses were a result of ongoing investments in product development, IT infrastructure, and operating expenses, which align with its roadmap to deliver differentiated digital banking products. "These are upfront investments in technology, talent, and marketing to support long-term growth," it said. However, Aeon Credit's quarterly revenue improved to RM599.92 million from RM522.26 million previously, driven by stronger loan and financing growth. Earnings per share fell to 15.19 sen from 20.84 sen in 1Q 2025. Meanwhile, Aeon Credit recorded a 13.9 per cent growth in total transaction and financing volume, reaching RM2.25 billion in 1Q 2026 from RM1.98 billion in 1Q 2025. The group said this growth was underpinned by its continued strategic expansion into the middle-income segment. Targeted marketing campaigns have improved both the payment business and personal financing, with growth of 22 per cent and 23 per cent respectively compared to the corresponding quarter last year. Correspondingly, gross financing receivables rose to RM14.63 billion, an increase of 15.6 per cent year-on-year, driven by the payment business, personal financing, and vehicle financing. The group's non-performing loans ratio improved to 2.57 per cent, down from 2.64 per cent as of February 2025. On prospects, Aeon Credit said it continues to adopt a cautious approach in its business operations and remains prudent, focusing on growing quality assets via middle-income segment expansion while closely managing credit risks within its financing portfolios. The group said it is also strengthening its digital infrastructure to enhance operational efficiency and build a customer-centric ecosystem through the Aeon Living Zone. Ongoing collaborations within the group aim to deepen customer engagement, expand market reach, and strengthen brand loyalty through a unified digital ecosystem. "Looking ahead, barring any unforeseen developments, Aeon Credit remains cautiously optimistic about sustaining resilient business performance for the financial year ending Feb 28, 2026. "The group will continue to prioritise operational efficiency and pursue strategic investments, including in technology, to drive long-term sustainable growth," it said.
New Straits Times
03-07-2025
- Business
- New Straits Times
Analyst cuts Aeon Credit forecasts on digital bank losses
KUALA LUMPUR: CIMB Securities has lowered its earnings forecasts for Aeon Credit Service (M) Bhd for financial years 2026 to 2028, citing anticipated losses from its digital banking associate, Aeon Bank. Aeon Credit, which holds a 50 per cent stake in Aeon Bank, expects to incur losses of between RM80 million and RM90 million from the digital venture due to continued expansion and product development costs. In a note, CIMB Securities projected Aeon Bank to post losses of RM85 million in financial year 2026 (FY26), RM60 million in FY27 and RM35 million in FY28. "We forecast continued losses in FY28, reflecting a more cautious stance amid a weak macro backdrop, prolonged gestation period for digital platform profitability, and sustained tech-related cost pressures," the firm said. As a result of its 50 per cent stake, Aeon Credit will book half of Aeon Bank's losses into its own earnings over the forecast period. CIMB Securities also factored in a 25-basis point cut in the overnight policy rate (OPR), but noted that the impact on earnings would be minimal. This is because Aeon Credit's lending rates and funding costs are largely fixed, with about 65 per cent of its funding sourced from Japanese banks at stable rates. The research house expects Aeon Credit to report a net profit of RM96.8 million for the first quarter of FY26, representing a 26.1 per cent quarter-on-quarter drop and a nine per cent decline year-on-year. The company is scheduled to release its results on July 8. CIMB Securities maintained its "hold" recommendation on the stock, but revised its target price slightly lower from RM5.80 to RM5.70.
New Straits Times
25-06-2025
- Business
- New Straits Times
Aeon Credit shareholders give nod to final dividend, RM146.8mil in total payout
KUALA LUMPUR: Aeon Credit Service (M) Bhd has received it shareholders' approval to pay a final single-tier dividend of 14.50 sen per share. This brings the total dividend to 28.75 sen per share, amounting to RM146.8 million for financial year ended Feb 28, 2025 (FY25) and representing a payout ratio of 39.6 per cent. Aeon Credit's revenue increased 15.1 per cent year-on-year to RM2.2 billion in FY25, supported by strong growth across all key products. The company said it maintained operational efficiency with a cost-to-income ratio, excluding impairment losses, of 28.2 per cent, supported by ongoing digital transformation and process optimisation efforts. "Profit from operation before accounting for the losses recorded from associate company, Aeon Bank remained stable at RM581.84 million, consistent with the previous year's performance." The group's net profit stood at RM370.6 million after equity accounted losses of RM68.33 million from Aeon Bank. Total transaction volume grew 15.3 per cent to RM8.41 billion, while gross receivables reached RM14 billion, exceeding its 10 per cent annual growth target. This was driven by robust performance in automobile financing, personal financing and payment business. Aeon Credit managing director Daisuke Maeda said now that Aeon Bank is operational, the company is entering a new era of ecosystem-led expansion, enabling it to better serve the evolving needs of customers. To support its growth, Aeon Credit has automated its credit assessment process. The upgraded loan origination system enabled 41 per cent of applications to be processed automatically, with 19 per cent approved instantly via AI-driven credit scoring. The rollout of a new collection system improved collection response times, boosting collection productivity by 22 per cent and achieving a 97.57 per cent collection ratio for billing accounts not past due. The company said the risk-based collection strategy supported by an AI-driven scoring model, further enhanced collection performance and productivity. Under the Aeon Living Zone vision, Aeon Credit continues to foster synergies through collaboration initiatives across the Aeon ecosystem. The expansion of Aeon Wallet functionalities, embedding onboarding capabilities for financing, retail, insurance and banking products aims to create a centralised hub for both financial services and lifestyle needs. This is further supported by revamp of the tiered Aeon loyalty programme to broaden market reach and unlock new growth opportunities. "These initiatives position us well to unlock long-term value for our customers and stakeholders. "We remain focused on leveraging our ecosystem to deliver innovative, responsible, and customer-centric financial solutions," Maeda said.
