KUALA LUMPUR (June 21): Aeon Credit Service (M) Bhd, which saw stellar earnings in the last financial year ended February 28 2023 (FY2023), adopted a cautious stance for the current year’s earnings outlook against a backdrop of inflationary pressures, high-interest rates and competition from other credit service platforms.

Notably, the consumer finance company, which saw sales returning to pre-pandemic level, recorded its highest profit before tax (PBT) of RM547.0 million to date and a 14.3% jump in profit after tax (PAT) of RM417.7 million for FY2022.  

Chairman Ng Eng Kiat said while it would be tough to maintain its past year's performance, the company expects to maintain a dividend payout of 30% this year.

“Although we don’t have a dividend policy, but historically we have paid a 30% (dividend) payout. So this year we hope to maintain that payout ratio,” Ng told a press conference after the group’s 26th annual general meeting (AGM) on Wednesday (June 21).

This came after its AGM approved a 21 sen per share dividend, bringing a total dividend of 49.5 sen for FY2023, up slightly from the 48.5 sen paid in FY2022. The highest total dividend paid was 63 sen per share in FY2017.

“It (the business) is a very dynamic situation. It changes by the month, by the quarter, and it is not easy for us — we hope to achieve what we have done in the last few years,” Ng said.

Meanwhile, managing director Daisuke Maeda in a statement said that Aeon Credit’s total sales volume of RM6.3 billion had recovered to pre-pandemic levels, as it registered an increase of 31% as compared to RM4.8 billion recorded in FYE2022.  

He added that its financing receivables also grew by 9.9% to RM10.8 billion compared to RM9.86 billion recorded in the last financial year.

Aeon Credit reported a net profit of RM417.69 million for FY2023, up 14.3% from RM365.42 million in FY2022, as revenue grew 7.57% to RM1.64 billion from RM1.52 billion.

Commenting on the group’s loan loss coverage ratio, which declined to 252% as at end-Feb 2023 (as compared to 289% a year ago), Aeon Credit chief financial officer Lee Siew Tee said that the ratio is aligned with its non-performing loans (NPLs).

“One of the reasons for the drop is due to the higher NPL issues. So at this juncture of 252%, it is quite a comfortable ratio we are looking at,” she said at the press conference after the shareholders' meeting.

At the time of writing, its share price rose by four sen or 0.36% to RM11.30, valuing  the company at RM2.88 billion.

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