KUALA LUMPUR (June 23): AEON Credit Service (M) Bhd (KL:AEONCR) expects loan growth to ease amid geopolitical uncertainties and inflationary pressures.
Financing growth will likely come in at 8% in the financial year ending Feb 28, 2027 (FY2027), chief financial officer Lee Siew Tee said at a briefing after the company’s annual general meeting on Tuesday. The target reflects the company’s more cautious and prudent stance, she noted.
“This approach actually takes into consideration the moderations in the consumer spending patterns as well as the potential shift in terms of customers' repayment behaviour, which requires us to be more disciplined in terms of our credit assessment and risk approach,” Lee said.
Net financing receivables at the company that also issues credit cards and provides car loans expanded by about 12% to RM14.92 billion in FY2026 from a year earlier.
The US and Iran signed a 14-point interim agreement last week, extending a fragile ceasefire announced in April by another 60 days to negotiate a final truce.
The recent easing of tensions in the Middle East would not alter the company’s outlook, its chairman Ng Eng Kiat said, as AEON Credit remains wary of lingering economic pressures.
NPL to stay below 3%
On asset quality, AEON Credit expects bad loans to remain below 3% of total loans in FY2027. Non-performing loans stood at 2.61% as at end-February 2026.
The company is keeping a close watch on inflation trends and their potential impact on lower-income households and younger consumers, chief executive officer Daisuke Maeda said at the same news conference.
“Our business is very sensitive to the world economy, even local economy, because of our customer base” Ng said, adding that the company aims to maintain its financial performance in FY2027.
For FY2026, AEON Credit posted a net profit of RM385.88 million, up 4.1% from RM370.61 million a year earlier, while revenue rose 12.3% to RM2.47 billion.