AEON Credit (00900) 1Q2022 revenue up 9.7% to HK$279.1m


HONG KONG, June 23, 2022 – (ACN Newswire) – – AEON Credit Service (Asia) Company Limited (“AEON Credit” or the “Group”; stock code: 00900) today announced its unaudited results for the three months ended May 31, 2022 (“1Q2022”, or the “reporting period”).

In 1Q2022, Group revenue increased 9.7% year-on-year to HK$279.1 million and operating income before depreciation and impairments was up 16.4% at HK$126.9 million. The Group recorded a profit of HK$82.7 million (1Q2021: HK$97.0 million) and earnings per share of 19.74 Hong Kong cents for the reporting period.

Overall 1Q2022 revenue 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 2021. February 2022. With an increase in Group sales, both as an issuer and acquirer of credit cards and as 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 at HK$233.9 million, driven by the continued rise in debit 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 map”), in May 2022which allows cardholders to enjoy 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 FukayamaChief Executive Officer of AEON Credit, said, “The group is pleased to have achieved positive revenue and operating profit growth in the first quarter of 2022 despite the challenging operating environment amid the fifth wave of the pandemic. The implementation of our strategy to address changing customer spending behavior and appeal to the younger generation has progressed well 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 increase our technology upgrading and digitalization efforts. »

About AEON Credit Service (Asia) Company Limited (Stock code: 00900)

AEON Credit Service (Asia) Company Limiteda subsidiary of AEON Financial Services Co., Ltd. (TSE: 8570) and member of the AEON Groupwas created in 1987 and registered on the Board of Directors The Hong Kong Stock Exchange Limited in 1995. The Group is primarily engaged in the consumer credit business, which includes the issuance of credit cards and the provision of personal loan financing, card payment processing services, insurance agency and brokerage hong kong and microfinance activities in mainland China.

For more information, please visit the company’s website at www.aeon.com.hk.

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© Japan Corporate News, source JCN Press Releases

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