AEON Credit Records a Solid Start to FY2026/27 as First Quarter Net Profit Jumps 24.4%

HONG KONG, Jun 25, 2026 – (ACN Newswire) – AEON Credit Service (Asia) Company Limited (“AEON Credit” or the “Group”; Stock Code: 00900) today announced its results for the three months ended 31st May 2026 (“1QFY2026/27” or the “Reporting Period”).

During the Reporting Period, the Group’s revenue increased 7.7% to HK$476.2 million, compared with HK$442.2 million in the first quarter of the previous year (“1QFY2025/26” or the “Previous Period”). Interest income rose 9.1% to HK$407.0 million, while interest expenses decreased 12.8% to HK$27.0 million as the average funding cost improved to 3.2% from 3.8% in the Previous Period, reflecting the Group’s effective funding strategy and diversified borrowing portfolio. Net interest income grew 11.1% to HK$380.0 million.

Operating profit before impairment losses and impairment allowances rose 11.4% to HK$255.9 million, with the operating expense-to-operating income ratio improving to 43.3% from 44.6% in the Previous Period. Achieving an improvement in impairment losses and allowances of HK$4.6 million to HK$99.6 million in the Reporting Period, the Group’s profit after tax increased by 24.4% to HK$136.0 million (1QFY2025/26: HK$109.3 million), with earnings per share increasing to 32.47 HK cents for the Reporting Period (1QFY2025/26: 26.11 HK cents).

Amidst an improving yet still challenging market environment, the Group refined its credit assessment scoring mechanism and made timely adjustments to credit exposure across selected business segments, enabling more granular risk differentiation and enhanced risk detection to strengthen the overall soundness of its credit portfolio. To address the needs of specific consumer groups, the Group also pursued product innovation, including the launch of renovation loans and personal loans for property owners in May 2026, further diversifying its customer base and reinforcing its competitive position in the personal loan market. Supported by targeted marketing initiatives focusing on overseas travel and domestic consumption, together with effective telemarketing and credit card promotional campaigns, the Group’s overall sales recorded steady growth of approximately 12.9% over the Previous Period. The gross advances and receivables balance remained at a similar level as at 28th February 2026, while asset quality continued to improve, with the percentage of doubtful (stage 2) and loss (stage 3) receivables to gross advances and receivables decreasing to 3.7% as at 31st May 2026 from 3.9% as at 28th February 2026.

Looking ahead, the Group’s strategic focus for the remainder of 2026 will be on accelerating digital transformation and deepening ecosystem synergies to drive sustainable growth. A key driver will be the integration of artificial intelligence (AI) and advanced data analytics across all business functions to enhance customer experience, data-driven credit assessment, risk management and compliance. The Group aims to reduce electronic Know-Your-Customer (eKYC) processing times and streamline application and approval processes to deliver a smoother and more personalised customer journey, while embedding digital communication tools such as WhatsApp across various customer interfaces to improve engagement effectiveness and efficiency.

The full implementation of a unified bonus point program is a central pillar of the Group’s growth plan. By integrating the loyalty rewards of participating merchant partners under a common platform, the Group aims to deepen customer engagement and enhance cross-selling opportunities across its business segments. AEON Stores (Hong Kong) Co., Limited is expected to become the first merchant partner to join the program, further strengthening the overall value proposition of the AEON Ecosystem and creating a more seamless and self-reinforcing “AEON EcoZone” for customers.

The Group remains committed to incorporating sustainability into its decision-making, risk management and day-to-day business practices. This is recognized in the recent  “Best Sustainability-Linked Loan – Non-Bank Financial Institution in Hong Kong” award received at “The Asset Triple A Sustainable Finance Awards 2026” for its HK$300 million syndicated sustainability-linked loan, as well as its inclusion in the S&P Global Sustainability Yearbook (China Edition) 2026, reflecting the Group’s capabilities in green finance and sustainable development.

Mr. Wei Aiguo, Managing Director of AEON Credit, said, “We are pleased to deliver another quarter of strong profit growth, underpinned by improving operating efficiency, a lower funding cost and disciplined credit risk management. Moving forward in a dynamic macroeconomic environment, we will be focused on accelerating our digital transformation and deepening the synergies within the AEON Ecosystem. With our strong liquidity, robust balance sheet and proven management capabilities, we are confident in maintaining our growth trajectory and delivering long-term value to our stakeholders.”

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, registered as a Hong Kong limited company in 1990, 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 credit card issuance, personal loan financing, card payment processing services and insurance intermediary business in Hong Kong, and microfinance business in the Chinese Mainland.

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

Topic: Press release summary