KUALA LUMPUR, June 25 — Aeon Credit Service (M) Bhd’s net profit fell to RM26.28 million in its first quarter ended May 31, 2020 (Q1 2021) from RM84.60 million recorded in the corresponding quarter last year.
However, revenue was higher at RM385.27 million versus RM378.59 million previously, it said in a filing to Bursa Malaysia today.
The company said its pre-tax profit was lower at RM37.09 million from RM112.67 million previously due to higher allowance for impairment loss and lower income resulting from the movement control order (MCO), which had caused major disruptions to its operations nationwide.
It also attributed the downtrend to higher impairment losses of RM174.37 million.
Aeon Credit said its total transaction and financing volume decreased 50.9 per cent to RM778.57 million in Q1 2021.
Meanwhile, gross financing receivables during the quarter increased to RM10.52 billion compared to RM9.14 billion previously.
In a statement, managing director Yuro Kisaka said 2020 is expected to be an unprecedented year of challenge and uncertainty, as the Covid-19 pandemic had significantly impacted economic activities globally.
“Within the first half of 2020, unstable business conditions paired with the MCO had caused some business sectors to come to a halt.
“Despite this, we at Aeon Credit took proactive measures to protect our customers and employees by ceasing customer-facing and other frontline operations across our entire branch network while maintaining critical business operations during the MCO,” he said.
Kisaka said Aeon Credit also took the opportunity to execute its digitalisation initiatives, which increases efficiency and reduces cost.
He said the company intends to expand its core businesses to create new business opportunities to support the customer lifecycle.
“Lastly, we will be changing the company’s current system to ensure we have a seamless end-to-end business system,” he added. — Bernama
