AEON Credit records steady performance in first half of FYE2027

PATAMI rises 3.1% YoY to RM154.47 million as revenue and financing volume continue to grow

KUALA LUMPUR, 30 SEPTEMBER 2026 – AEON Credit Service (M) Berhad (AEON Credit) reported a steady performance for the six-month financial period ended 31 August 2026 (6MFYE27), with Profit After Tax and Minority Interest (PATAMI)increasing by 3.1% year-on-year (YoY) to RM154.47 million, compared to RM149.78 million in the corresponding period last year.

The increase in PATAMI was primarily driven by higher revenue attributed to stronger loan and financing growth, partially offset by higher impairment losses on financing receivables. Revenue grew by 7.8% from RM1.22 billion to RM1.31 billion, while Profit Before Tax (PBT)increased by 1.7% from RM212.08 million to RM215.74 million. The Group’s transaction and financing volume for 6MFYE27 grew by 6.6% YoY to RM4.90 billion.

For the second quarter ended 31 August 2026 (Q2FYE27), the Group’s transaction and financing volume grew by 8.4% YoY to RM2.54 billion, while revenue increased by 7.7% to RM665.20 million from RM617.88 million in the corresponding quarter of the preceding year, mainly attributable to stronger loan and financing growth.

Gross financing receivables expanded to RM16.53 billion as at 31 August 2026, an increase of RM1.38 billion compared with the corresponding period of the preceding year, while net financing receivables, after allowance for impairment loss, rose to RM15.69 billion from RM14.29 billion.

AEON Credit

The Non-Performing Loans (NPL) ratio stood at 2.55%, compared to 2.49% a year earlier, mainly due to cost-of-living pressures affecting certain customer segments, particularly younger and lower-income groups. AEON Credit has taken measures to address the increase, while the loan loss coverage ratio stood at 199%, compared to 228%, a year earlier.

Other income for the quarter was recorded at RM57.16 million, mainly attributable to bad debt recoveries. The ratio of total operating expenses to revenue stood at 72.5%, compared to 70.0% in the corresponding quarter of the preceding year, mainly attributable an increase of RM30.12 million in impairment losses on financing receivables.

Finance costs for the quarter were higher, mainly due to increased borrowings in line with the Group’s receivables growth, with the nominal value of borrowings standing at RM12.77 billion as at 31 August 2026, compared to RM11.53 billion a year ago. The Group also equity-accounted for its proportionate share of losses in AEON Bank amounting to RM21.70 million during the quarter, compared to RM18.50 million in the corresponding quarter of the preceding year.

PBT for Q2FYE27 was recorded at RM84.86 million, a decrease of 17.6% compared to RM103.05 million corresponding quarter of the preceding year.

PROSPECTS

Malaysia’s Gross Domestic Product (GDP) recorded growth of 6.0% in the second quarter of 2026, compared to 5.4% in the preceding quarter, supported by resilient domestic consumption and sustained export performance. Bank Negara Malaysia (BNM) has projected the Malaysian economy to grow between 4.0% and 5.0% in 2026, underpinned by continued domestic demand and investment activities, notwithstanding external headwinds and ongoing global uncertainties.

Against this backdrop, the Group continues to adopt a cautious and prudent business approach, remaining focused on growing quality financing assets and closely monitoring inherent credit risks within its financing portfolio. The Group will also continue enhancing its information technology capabilities to improve operational efficiencies and maintain disciplined cost management.

In addition, the Group will leverage the broader AEON ecosystem in Malaysia, particularly through its 51% subsidiary, AEON360 Sdn. Bhd., to strengthen customer loyalty, expand its customer base and enhance the overall customer experience.

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 28 February 2027.

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