AEON Credit will pay a dividend of 14.25 sen on November 7

PETALING JAYA: Aeon Credit Service (M) Bhd announced a single-tier dividend of 14.25 sen on November 7.

This is despite the non-bank lender reporting a 41% year-on-year (y-o-y) decline in profits to RM71.2 million or earnings per share of 13.94 sen for the second quarter ended Aug 31, 2024 (2 quarter 25).

This is despite revenue growing 15% year-on-year to RM541.4 million on stronger credit and financial growth.

The decline in profit was due to an increase in the operating expense ratio, higher impairment losses on financing receivables and an increase in interest expense for the current quarter due to an increase in debt, along with an increase in receivables.

In a filing with Bursa Malaysia, AEON Credit said its total transaction and financing volume for the current quarter of RM2.2 billion was up 20.6% compared to the same quarter last year.

Meanwhile, the group’s gross finance receivables as at August 31, 2024 of RM13.2 billion were higher by RM1.63 billion compared to August 31 last year.