AEON Credit Service’s profit up 31.3% to US$13.9m in Q1

Earnings per share is 26.11 HK cents.

AEON Credit Service (Asia) Company Limited reported a revenue of $56.33m (HK$442.2m) in the three-month period ended 31 May 2025, a 3.7% year-on-year (YoY) increase.

Higher revenue was primarily driven by higher interest income, which resulted in steady growth in revolving credit card and personal loan receivables balances, the lending company said in a press release.

Profit after tax rose by 31.3% YoY to $13.92m (HK$109.3m).

Earnings per share is 26.11 HK cents for Q1 FY2024/25, higher than the 19.88 HK cents announced for the same period in the previous year.

Operating profit before impairment losses and impairment allowances rose 8.7% to HK$229.7m. Cost-to-income ratio fell to 44.6%, from 47.3% a year earlier.

AEON Credit said that it strengthened its credit assessment model to control credit expsorue for higher-risk advances and receivables.

It also highlighted its “targeted marketing and digital advertising campaigns”, which it said stimulated spending and sustained sales growth momentum for credit cards.

This mitigated the drop in personal loan sales, it added.

Looking ahead, AEON Credit expects its “AEON HK” mobile app to serve as its primary channel for new customer acquisition of credit card and personal loan services.

The group also shared that it is developing a new rewards platform for its customers in Hong Kong for more convenient premium point and e-coupon redemptions.

(US$1 = HK$7.85; as of 30 June 2025, Google, from Morningstar)