KUALA LUMPUR (Sept 28): AEON Credit Service (M) Bhd saw its net profit jump 45.7% to RM75.48 million for its second financial quarter ended Aug 31, 2021 (2QFY22) from RM51.81 million a year ago on lower operating and interest expenses.

Earnings per share came in higher at 27.59 sen for 2QFY22 compared with 18.31 sen a year ago.

Its operating expenses for the quarter fell to RM225.76 million in 2QFY22 from RM236.65 million in 2QFY21, mainly due to lower impairment losses on financing receivables of RM92.27 million compared with RM112.01 million. Funding cost was also lower mainly due to reduced borrowings and lower cost of funds.

The nominal value of borrowings stood at RM7.88 billion as at Aug 31, 2021 from RM8.06 billion as at Aug 31, 2020.

Quarterly revenue rose marginally by 2.89% to RM374.48 million in 2QFY22 from RM363.97 million a year ago.

The group has declared an interim dividend of 28.5 sen for the financial year ending Feb 28, 2022 (FY22), payable on Nov 3.

On a quarter-on-quarter basis, AEON Credit's net profit, however, fell 53.7% from RM163.09 million in 1QFY22, while revenue dropped 8.9% from RM410.97 million.

It blamed the weaker earnings mainly due to revenue contraction and lower other income resulting from the various lockdown measures imposed by the government, which had impeded the business operations of the company and its merchants nationwide.

In addition, the lower earnings were also due to higher impairment losses of RM92.23 million recorded in the current quarter from RM23.25 million for 1QFY22.

For the first half of FY22 (1HFY22), its cumulative net profit saw a whopping 205.5% increase to RM238.58 million, from RM78.09 million a year ago, on higher revenue and lower allowance for impairment losses by RM170.86 million. Revenue rose 4.19% year-on-year (y-o-y) to RM785.44 million from RM753.85 million in 1HFY21.

AEON Credit expects to be able to maintain its financial performance for FY22.

Shares in AEON Credit fell 12 sen or 1% to settle at RM11.88 on Tuesday, giving it a market capitalisation of RM3.03 billion.