AEON Credit (00900) Q1 2022 revenue up 9.7% to HK$279.1 million…

(MENAFN- ACN NewsWire) HONG KONG, June 23, 2022 – (ACN Newswire) – AEON Credit Service (Asia) Company Limited (“AEON Credit” or the “Group”; stock code: 00900) today announced its results not audited for the three months ended May 31, 2022 (“1Q2022”, or the “reporting period”).
For 1Q2022, Group revenue increased 9.7% year-on-year to HK$279.1 million and operating profit before impairment losses and impairment provisions increased 16.4% to HK$126.9 million. The Group recorded profit of HK$82.7 million (1Q2021: HK$97.0 million) and earnings per share of 19.74 HK cents for the reporting period.
Overall 1Q2022 sales increased by 12.3% compared to 1Q2021, with a gross balance of advances and receivables up 4.0% compared to the amount at the end of February 2022. With an increase in sales for the Group, both as an issuer and acquirer of credit cards and an insurance intermediary, the Group recorded a year-on-year increase of HK$7.4 million in fees and commissions, reaching a total of HK$28.9 million. Interest income, meanwhile, increased by HK$15.8 million to HK$233.9 million, due to the continued increase in receivable balances. These, combined with the increase in processing and late fees due to the growing demand for cash advances, led to the robust growth of the Group’s turnover and operating profit. However, the expectation of a slow economic recovery over the reporting period, in stark contrast to the expected rebound in leading economic indicators in 1Q2021, led to a relatively significant increase in impairment losses and impairment provisions in 1Q2022. , which resulted in lower earnings in the reporting period, despite strong revenue growth.
As part of its strategy to respond to the shift in customer spending to the Internet in the new normal and expand its customer base, the Group launched its first-ever cashback credit card, AEON Card Wakuwaku (the “Wakuwaku Card”), in May 2022. , which entitles cardholders to special discounts on online and overseas spending in Japan. Backed by celebrity endorsements to attract a younger generation of customers, it received a favorable response with over 5,000 Wakuwaku cards issued within the first month of its debut.
Following the success of its marketing and branding efforts for the Wakuwaku card, the Group will place even greater emphasis on using digital and traditional marketing channels to promote its credit card and personal loan products and to deploy different marketing programs to enrich customers’ user experience. .
Regarding its technology development efforts, AEON Credit’s card and loan system replacement project is expected to be completed towards the end of the current fiscal year, after which the Group will be in a position to launch new solutions. payment options, flexibility in offering product benefits, and access to even better data analysis tools. With a strong capital position, the Group will continue to dedicate resources to expanding its branch network, delivering better customer experiences, accelerating digitalization and exploring new investment opportunities to develop and diversify its activities.
Mr. Tomoharu Fukayama, Managing Director of AEON Credit, said, “The group is pleased to have achieved positive revenue and operating profit growth in 1Q2022 despite the challenging operating environment amid the fifth wave of the pandemic. The implementation of our strategy to respond to changing customer buying behaviors and attract the younger generation has made good progress with the successful launch of our Wakuwaku card. To meet changing customer needs and seize emerging market opportunities, we will also continue to intensify our marketing and promotions using a variety of channels and intensify our technology upgrading and digitalization efforts.
About AEON Credit Service (Asia) Company Limited (Stock code: 00900)
AEON Credit Service (Asia) Company Limited, a subsidiary of AEON Financial Service Co., Ltd. (TSE: 8570) and a member of the AEON Group, was established in 1987 and listed on the Main Board of the Stock Exchange of Hong Kong Limited in 1995. The Group is primarily engaged in the consumer finance business, which includes issuing credit card business and the provision of personal loan financing, card payment processing services, insurance agency and brokerage business in Hong Kong and microfinance business in mainland China. .
For more information, please visit the company’s website at .

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