AEON Credit Service (M) Berhad (“AEON Credit” or the “Group”) today announced that it has posted a 16.4% growth in revenue with RM486.51 million in third quarter ended 30 November 2023 (“Q3FYE24”), compared to RM417.84 million of the preceding year corresponding quarter ended 30 November 2022 (“Q3FYE23”), driven by stronger loan and financing growth.

This was underpinned by a 17.8% increase in total transaction and financing volume to RM1.82
billion in Q3FYE24 as compared to RM1.55 billion in Q3FYE23. For the quarter under review,
AEON Credit registered a profit before tax (“PBT”) of RM111.43 million compared to RM101.58
million recorded in the preceding year’s corresponding quarter on the back of higher revenue
achieved.

The Group also recorded a profit after tax (“PAT”) of RM85.55 million in Q3FYE24 as compared
to RM83.63 million in Q3FYE23.

For the nine-months period ended 30 November 2023 (“9MFYE24”), AEON Credit’s transaction
and financing volume was higher by 17.2% at RM5.4 billion as compared to RM4.6 billion recorded in 9MFYE23. While the gross financing receivables increased by RM1.31 billion or 12.4%
in 9MFYE24 to RM11.90 billion as compared to RM10.60 billion in 9MFYE23. The Non-Performing
Loans (“NPL”) ratio stood at 2.73% as of 30 November 2023.

Profit before tax (“PBT”) for 9MFYE24 registered a decrease of 3.5% to RM402.58 million compared to RM417.17 million of the corresponding period of the previous year mainly attributable
to increase of impairment losses on financial receivables of RM455.93 million was recorded in
9MFYE24 as compared to RM330.63 million in 9MFYE23 mainly due to higher reversal of general
provision coupled with lower financing receivables recorded in 9MFYE23.

Prospect
Malaysia’s economy continues to improve, achieving a 3.3% growth in Gross Domestic Product
(GDP) during the third quarter of 2023, surpassing the 2.9% recorded in the preceding quarter.
This encouraging momentum is primarily credited to the resilient domestic consumption
demand of the country.

Amid a globally challenging landscape, Bank Negara Malaysia projects a continued expansion for
the Malaysian economy, forecasting a growth rate of approximately 4.0% in 2023, underpinned
by domestic demand, favourable labour market conditions, a surge in tourism activities, and the
ongoing progress of key infrastructure projects.

For the remaining of its fiscal year, the Group will remain vigilant through proactively monitoring
its asset quality, prudently managing its credit risks in its financing portfolios and its operational
cost in tandem with its balanced approach in revenue growth.

In pursuit of the Group’s long-term growth sustainability and its firm commitment in delivering
value to its shareholders and stakeholders, the Group shall remain steadfast in its strategic
pursuit of future proofing its business through its on-going digitalisation initiatives of its
operation and processes to improve its efficiency, productivity and enhance customers’ experience. The Group had launched the digital onboarding for instant conditional approval backed by
e-KYC solutions and scoring models to acquire good score customers strategically. The introduction of e-signature for personal financing has also enabled end-to-end digital onboarding, where
the turnaround time has been improved and leading to an increase in online application.

Besides that, the Group is leveraging on the AI-based credit scoring service to optimise and enhance application process to improve the approval ratio as well as adopting a risk-based collection approach that focus on high-risk customers to improve the productivity and collection performance.

Barring any unforeseen circumstances, the Group expects to maintain its financial performance
throughout the remainder of the financial year ending 29 February 2024.