KUALA LUMPUR (Sept 29): AEON Credit Service (M) Bhd (KL:AEONCR) reported a 18% drop in its net profit for the second quarter amid higher impairment losses on financing receivables.

Net profit for the three months ended Aug 31, 2026 (2QFY2027) fell to RM59.30 million from RM72.23 million a year earlier, according to the consumer financing provider's exchange filing on Tuesday. 

However, revenue grew 7.7% year-on-year to RM665.20 million from RM617.88 million, driven by stronger loan and financing growth.

For the first six months of the financial year, net profit increased 3.1% to RM154.47 million from RM149.78 million in the previous year’s corresponding period, as revenue expanded 7.8% to RM1.31 billion from RM1.22 billion.

AEON Credit declared a dividend of 13 sen per share for the quarter, payable on Nov 5.

The group said it remains focused on growing quality financing assets and adopting a cautious business approach given geopolitical tensions, elevated oil prices, inflationary pressures and global financial market volatility.

It added that it will continue to monitor inherent credit risks within its financing portfolio while enhancing its information technology capabilities to improve operational efficiencies.

Looking forward, AEON Credit said it will leverage the broader AEON ecosystem in Malaysia, particularly through its 51%-owned subsidiary AEON360 Sdn Bhd, to strengthen customer loyalty and expand its customer base.

"Barring any unforeseen circumstances, the group expects to be able to sustain its business momentum through the continued implementation of appropriate strategic and operational measures for the financial year ending Feb 28, 2027," it added.

AEON Credit shares were down 16 sen or 2.99% at RM5.19 on Tuesday, giving the group a market capitalisation of RM2.7 billion.