KUALA LUMPUR (July 4): AEON Credit Service (M) Bhd's net profit for the first quarter ended May 31, 2022 (1QFY23) was little changed at RM163.07 million, versus RM163.09 million a year ago, despite weaker revenue, thanks to higher bad debt recoveries.

In a filing with Bursa Malaysia, the non-bank lender reported that revenue dropped 5% year-on-year to RM390.57 million, from RM410.97 million last year, mainly attributable to the decrease in average financing receivables.

Quarterly earnings per share stood at 63.88 sen, from 63.87 sen in 1QFY22.

It also recorded a higher ratio of total operating expenses against revenue of 40% from 38.6% a year ago, amid higher impairment loss on financing receivables offset by lower other operating expenses.

In its latest quarter, AEON Credit's non-performing loan (NPL) ratio stood at 2.53%, up from 1.75% in 1QFY22 but lower from 2.66% in 4QFY22. Loan loss coverage ratio stood at 281%, down from 289% a quarter ago.

Moving forward, AEON Credit said it will continue to monitor and assess inherent credit risks in its financing portfolios.

It will focus on enhancing asset quality, prudent cost management and improvement in financial and operational efficiencies, while also enhancing its information technology capabilities to drive the digitalisation of its operations.

Shares of AEON Credit closed 28 sen or 2.01% lower at RM13.62, giving it a market capitalisation of RM3.48 billion.