Aeon Credit Service (asia) Co., Ltd. · HKEX:900
Aeon Credit Service (asia) — H1 FY2024/25 Earnings Presentation
22 slides from Aeon Credit Service (asia)'s earnings presentation, Sep 26, 2024
Slide 1: AEON Credit Service (Asia) FY2024/25 Interim Results
AEON Credit Service (Asia) Co., Ltd. Stock Code : 0900 FY2024/25 Interim Results 26 September 2024
Slide 2: Disclaimer Glossary
Disclaimer Glossary • This document has been prepared by AEON 1H FY20/21 First half of FY2020/21 Credit Service (Asia) Co., Ltd. (“AEON Credit” 2H FY20/21 Second half of FY2020/21 or the “Company”) solely for use at the 1H FY21/22 First half of FY2021/22 presentation to analysts and fund managers. 2
Slide 3: Agenda
Agenda 1 Major Achievements & Financial Performance 2 First Half Year Financial Results 3 Operational Review and Business Strategies 4 Q&A Session 3
Slide 4: Major Achievements & Financial Performance
Major Achievements & Financial Performance
Slide 5: Financial Performance
Financial Performance 1H FY23/24 1H FY24/25 Items < 31.8.2023> <31.8.2024> HoH % Sales HoH % + 25 % + 11 % <Gross advances & receivables> HK$ 6,440m HK$ 7,225m + 12% Revenue HK$ 783m HK$ 860m + 10% Profit after tax HK$ 191m HK$ 170m - 11% Cost-to-income ratio 48.0% 47.0% - 1% 5
Slide 6: Five Years Performance Trend
Five Years Performance Trend Sales Trend 3% 11% Unit: HK$ Billion HoH HoH 6.6 6.8 7.1 6.4 4.7 5.2 4.2 Sustained 3.4 3.9 1H FY20/21 2H FY20/21 1H FY21/22 2H FY21/22 1H FY22/23 2H FY22/23 1H FY23/24 2H FY23/24 1H FY24/25 Growth Momentum Sales Gross Advances & Receivables, Revenue, Profit After tax Gro
Slide 7: Segment Information
Segment Information Credit Personal Items Insurance Consolidated Hong Kong PRC Consolidated cards loans 1H FY24/25 Revenue 669M 176M 15M HK$ 860M 842M 18M HK$ 860M Segment results 212M (14M) 6M HK$ 204M 201M 3M HK$ 204M Unallocated expenses (HK$ 1M) (HK$ 1M) Profit before tax HK$ 203M HK$ 203M 1H FY
Slide 8: Interim Dividend
Interim Dividend Unit: HK Cents 59.0% Payout ratio for 1H FY24/25 59.0% 53.8% 51.2% Core 49.3% Payout Dividend Policy : Annual dividend payout ratio of not less than 30% of Ratio the net profit attributable to shareholders of the Company for the financial year 24 22 22 Dividend Total for 1H FY24/25
Slide 9: Financial Results in 1H FY24/25
Financial Results in 1H FY24/25
Slide 10: Highlights of Consolidated Statement of Profit or Loss
Highlights of Consolidated Statement of Profit or Loss Profit Analysis Waterfall Chart Unit: HK$ Million 3 0 0 Financial Highlights 28 75 147 Net interest income (HoH) +HK$59m Operating income (HoH) 191 +HK$72m 177 Operating profit (HoH) +HK$45m 1H Net interest Fees and Handling and Operating 1H Imp
Slide 11: Gross Advances & Receivables Achieve Record High for Third Consecutive Year
Gross Advances & Receivables Achieve Record High for Third Consecutive Year, with Interest Income Maintaining Upward Trend Gross advances & receivables Highlights Unit: HK$ Million 9000 8000 6,961 7,225 ▪ Gross advances and receivables continued to reach 7000 5,836 6,440 173 198 211 1,675 record hig
Slide 12: Sustained Sales Growth Momentum Boosts Overall Revenue
Sustained Sales Growth Momentum Boosts Overall Revenue Unit: HK$ Million 1200 Highlights 1000 ▪ Continued the growth in interest income 840 860 783 64 64 ▪ Fee revenue from credit card issuing business continued 800 63 66 62 to grow steadily as sales increased. However, it was offset by the cost of
Slide 13: Increase in Interest Expense Contained Despite Higher Borrowing and US Policy Rates
Increase in Interest Expense Contained Despite Higher Borrowing and US Policy Rates Bank Borrowings/Borrowings from Immediate Holding Company 8.0%Average funding cost/3-month HIBOR Unit: HK$ Million Unit: % 4,500 6.0% 3,171 4.4% 4.7% 3,500 2,978 4.2% 2,571 3.8% 2,108 4.0% 4.3% 2,500 2.5% 2.6% 2.7% 3
Slide 14: Digitalization Increases Operational Efficiency and Minimizes Increase in Operating Expenses
Digitalization Increases Operational Efficiency and Minimizes Increase in Operating Expenses Operating Expenses Cost-to-Income ratio Unit: HK$ Million Unit: % 378 55.7% 57.5% 56.5% 51.3% 48.0% 45.9% 47.0% 362 351 51 323 324 303 54 61 1H FY21/22 2H FY21/22 1H FY22/23 2H FY22/23 1H FY23/24 2H FY23/24
Slide 15: High Interest Rate and Depressed Investment Environment Lead to Increase in Impairment Losses
High Interest Rate and Continued Depressed Investment Environment Lead to Increase in Impairment Losses and Allowances Movement of impairment losses and impairment allowances Credit impaired (Stage 2 & 3) advances and receivables to Unit: HK$ Million gross advances and receivables 300 Unit: % 250 22
Slide 16: Strong Capital Base and Stable Funding Source to Support Growth
Strong Capital Base and Stable Funding Source to Support Growth in Volatile Business Environment Maturity Profile of Bank Borrowings and Borrowings Liquidity Risk Unit: HK$ Million from Immediate Holding Company More than 3 More than 1 Maturity profile Within 3 months but year but Unit: HK$ Million
Slide 17: Operational Review & Business Strategies
Operational Review & Business Strategies
Slide 18: Operational Review for 1H FY24/25
Operational Review for 1H FY24/25 ▪ Opened Shatin branch with a new location in the center of New Territories to diversify branch network Extension of branch network ▪ Additional consultation counters with more privacy to enhance customer experience and meet customers’ growing demand for face-to-fac
Slide 19: Business Strategies in 2H FY24/25
Business Strategies in 2H FY24/25 1 Development of New Contactless Mobile Payment Solutions – Virtual card 2 Enhance Convenient and Premium Payment Experience – New card design 3 Accelerate Back-office Digitalization – Call center platform and core application system upgrade 4 Strengthen Foundation
Slide 20: Sustainability Highlights in 1H 24/25
Sustainability Highlights in 1H 24/25 March April May ❖ HKU “AEON Scholarship” Ceremony ❖ HKUST “AEON Credit Service (Asia) Scholarship” ❖ Volunteering for Sowers Action “Healthy Children Happy Get-together Family” Outing Activity ❖ Participated in WWF HK “Earth Hour 2024” ❖ Friends of the Earth Tre
Slide 21: Thank You!
Thank You!
Slide 22: Q&A Session
Q&A Session
AEON Credit Service (Asia) — H1 FY2024/25 Earnings Presentation on 6ix