KUALA LUMPUR, April 9 — AEON Credit Service (M) Bhd’s net profit declined to RM292.05 million in the financial year ended Feb 29, 2020 (FY20), from RM354.62 million a year earlier.
The company attributed the weaker net profit to increased impairment losses on financing receivables of RM450.31 million as compared with RM308.37 million in the previous financial year in line with the growth of receivables during the year under review.
The loan loss coverage ratio stood at 346 per cent for FY20 against 331 per cent for FY19.
AEON Credit’s revenue for FY20 increased to RM1.598 billion from RM1.365 billion in FY19.
AEON Credit managing director Yuro Kisaka said the company would continue to remain prudent and cautious moving forward as it takes full consideration of the Covid-19 pandemic and the uncertainties which lie ahead.
He added that AEON Credit would focus on growing quality assets as well as enhancing financing and operational efficiency by leveraging on its business fundamentals based on the scheduled implementation of its business plan.
“Taking consideration of the Covid-19 pandemic affecting business on a global scale, not excluding the essential services industry and the Movement Control Order imposed by the government, business and operations will be affected for most of the year.
“Also, with the implementation of additional measures directed by Bank Negara Malaysia in assisting borrowers and customers who experience financial constraints from the pandemic, the company has taken the necessary measures to face the imminent challenges,” he added.
For FY20, AEON Credit said a final single-tier dividend of 14.00 sen per ordinary share has been recommended by the board to be paid on July 16, 2020.
Total dividend payable for FY20 amounts to 36.25 sen with a payout ratio of 31.5 per cent. — Bernama
