KUALA LUMPUR (Nov 6): AEON Credit Service (M) Bhd (KL:AEONCR) said it will inject RM125 million into 50%-owned AEON Bank (M) Bhd to strengthen the digital bank’s capital base and support future growth.

The additional subscription will preserve AEON Credit’s 50% equity stake as joint venture partner AEON Financial Service Co Ltd will undertake a matching subscription to maintain the existing shareholding ratio, the company said on Thursday.

Upon completion, AEON Bank’s issued shares will rise from 550 million to 800 million. AEON Credit’s holdings will increase from 275 million to 400 million shares through the subscription of 125 million new shares at RM1 each. In total, both parties will inject RM250 million into the digital bank.

AEON Credit said the cash injection will be funded through internally-generated funds and will not have a material impact on its net assets, gearing, or earnings for the financial year ending Feb 28, 2026 (FY2026).

As at end-August, AEON Credit reported total loan receivables of RM14.29 billion. The non-bank financial institutions held profitability ratios of 9.7% and 9.9% in the past two financial years.

The company said the capital injection is intended to support AEON Bank’s business expansion, strengthen its financial position and ensure compliance with Bank Negara Malaysia’s minimum capital requirements.

It added that the proposed subscription does not require shareholder approval but remains subject to clearance from BNM.

The exercise is expected to be completed by January 2026, pending regulatory approval.

AEON Credit shares were up two sen or 0.4% at RM5.28 on Thursday, valuing the company at RM2.7 billion. Year to date, the stock has declined by 15.7%.