Kuala lumpur: AEON Credit Service (M) Bhd's net profit for the first quarter ended May 31, 2026, for the financial year 2027 (1QFY2027) rose to RM95.16 million from RM77.54 million in 1QFY2026.

According to BERNAMA News Agency, the financial services provider reported in a filing with Bursa Malaysia that its revenue increased by 7.9 per cent to RM647.56 million from RM599.92 million previously. This growth is mainly attributable to stronger loan and financing activities.

The company's non-performing loans (NPL) ratio saw a slight increase to 2.60 per cent from 2.57 per cent in 1QFY2026. This rise is primarily due to cost-of-living pressures impacting certain customer segments, particularly younger and lower-income groups. AEON Credit has implemented corrective actions to address this increase in the NPL ratio.

Despite these challenges, its loan loss coverage ratio remained robust at 195 per cent as of May 31, 2026, compared to 217 per cent the previous year. In light of Bank Negara Malaysia's projection that the Malaysian economy will grow between 4.0-5.0 per cent in 2026, AEON Credit plans to adopt a cautious and prudent business approach.

The company is taking into account the heightened geopolitical tensions in West Asia, disruptions in global supply chains, persistent inflationary pressures from elevated global oil prices, and ongoing volatility in global financial markets. AEON Credit remains focused on growing quality financing assets and monitoring credit risks while enhancing its information technology capabilities to improve operational efficiencies.

Additionally, AEON Credit aims to strengthen customer loyalty and expand its customer base by leveraging the broader AEON ecosystem in Malaysia through its 51 per cent subsidiary, AEON360 Sdn Bhd. The group anticipates sustaining its business momentum through strategic and operational measures for FY2027, ending February 28, 2027, barring any unforeseen circumstances.