- Fosters Greater Synergy within AEON Ecosystem and Enhances Customer Benefits
HONG KONG, Apr 3, 2025 - (ACN Newswire) - AEON Credit Service (Asia) Company Limited ("AEON Credit" or the "Group" Stock Code: 00900) today announced its annual results for the year ended 28th February 2025 ("FY2024/2" or the "Reporting Year").
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During the Reporting Year, the Group's revenue increased by 8.4% year-on-year to HK$1,759.3 million, as it implemented various marketing programs to stimulate card spending, which resulted in a steady increase in credit card receivables and personal loan receivables. The revenue growth was also attributable to the 10.4% increase in fees and commissions, due to an increase in both the transaction volume in the credit card acquiring business, as well as the launch of new insurance products of the insurance intermediary business. With improved operating efficiency, the cost-to-income ratio decreased slightly to 46.6% from 46.9% in the year ended 29th February 2024 ("FY2023/24" or the "Previous Year"), and the operating profit before impairment losses and impairment allowances rose 9.1% to HK$881.2 million. Profit after tax increased 2.1% to HK$400.5 million in FY2024/25.
The Board has recommended a final dividend of 25.0 HK cents per share (FY2023/24: 24.0 HK cents per share), bringing the total dividend for FY2024/25 to 49.0 HK cents per share, representing a dividend payout ratio of 51.2%.
In response to the slower-than-expected market recovery, the Group prioritised stable sales and receivables growth in FY2024/25, focusing on building a high-quality portfolio which emphasises income generation, growth and resilience. The Group achieved another year of continued overall sales growth of 10.5% compared with the Previous Year. The total advances and receivables balance maintained its upward trend and recorded an increase of 5.3% as at 28th February 2025 as compared with the balance as at 29th February 2024. Moreover, the Group secured a HK$300 million syndicated sustainability-linked loan during the Reporting Year from a syndicate of nine regional and local banks, further underscoring the Group's unwavering commitment to integrating sustainability into its business operations.
With regard to marketing, the Group utilized targeted marketing campaigns and promotions with various business partners to better promote the competitive edge of its carefully developed products and services to the intended customers. Besides, in order to diversify its branch network and meet customers' growing demand for face-to-face advisory services, the Group continued to revamp and expand its branch network, including the opening of the new Shatin branch in June 2024. In terms of customer experience, the upgraded credit application processing platform facilitated the launch of a virtual credit card function within the "AEON HK" mobile application (the "Mobile App"), enabling immediate credit purchases upon card approval and activation. The Group also continued to prioritize the digitalization of its operations, with measures including enhancement of the call center platform to improve customer interaction responsiveness.
Regarding credit management, the enhanced credit monitoring model, incorporating updated customer credit utilisation indicators, improved credit exposure allocation and facilitated more precise utilisation and monitoring and control of credit risk across customer portfolios. Meanwhile, to further strengthen its technological foundation, the Group has successfully relocated its core data center to Tseung Kwan O, prioritising uptime, fault tolerance, and cost-effectiveness while adhering to internationally recognised green building certification standards. In addition, the Group has completed the revamp of its integrated core operating system platform. These enhancements strengthen the Group's information technology infrastructure for future product launches and system upgrades.
Looking ahead to 2025, anticipating a continued gradual recovery in the domestic consumer market, the Group will promote sales and receivables growth through overseas and online spending, while refining credit assessment and monitoring methods to maintain a sustainable asset quality portfolio and expedite decision making processes.
The Group has been dedicated to innovation and technology, always providing customers with unparalleled user experience. In coming year, the Group plans to develop and implement a new all-in-one bonus point platform to streamline bonus point management process. The new bonus point platform allows customers to manage and accumulate bonus points earned from AEON Cards and other participating merchants seamlessly in one single platform to ensure ease of use.
As a responsible consumer finance service provider in Hong Kong, the Group remains committed to integrating sustainability into its operations and will continue to promote sustainable and digitalised products and services, including upcoming loan products designed to support customers' transition to a low-carbon lifestyle. In addition, as the contactless mobile payment solution matures into mass market deployment in Hong Kong, the Group will further invest in developing virtual card functionalities.
Mr. Wei Aiguo, Managing Director of AEON Credit, said, "Despite a challenging operating environment, we are pleased to have delivered steady growth in FY2024/25, reinforcing a solid foundation for long-term sustainable development. As AEON Credit marks its 35th anniversary, we remain committed to providing exceptional credit card services tailored to evolving customer needs. By offering innovative and customized products, we aim to expand our customer base and capture new opportunities in the growing consumer finance market. Backed by our strong liquidity position and robust balance sheet, the Group is well-positioned to sustain its growth momentum and drive future success."
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 set up in 1987 and listed on the Main Board of The Stock Exchange of Hong Kong Limited in 1995. The Group is principally engaged in the finance business, which includes the issuance of credit cards and the provision of personal loan financing, card payment processing services, insurance intermediary business in Hong Kong and microfinance business in Mainland China.
For more information, please visit the company's website at www.aeon.com.hk.
Source: AEON Credit Service (Asia) Company Limited
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