AEONTS fee-based income performs well in H1 of fiscal
AEON Thana Sinsap (Thailand), a consumer-finance provider, plans to expand fee-based income from its insurance-broker and debt-collection services after both businesses showed good prospects during the first half of this fiscal year.
In the first half ending August 20, AEONTS recorded income from non-lending businesses of Bt951 million, representing 11 per cent of total revenues.
Other income included that from its subsidiaries, such as commission income of Bt236 million from AEON Insurance Service (Thailand) Co and collection-service income of Bt84 million from ACS Servicing (Thailand) Co, the company reported to the Stock Exchange of Thailand yesterday.
AEONTS reported net profit of Bt1.25 billion for the first half of this fiscal year, declining slightly from Bt1.26 billion in the same period last year. However, its net in the second quarter improved from the first thanks to the growth of fee income and lending business in neighbouring countries.
In the second quarter, AEONTS’ net profit was Bt731.308 million, up from Bt523 million in the first quarter.
In the first half of fiscal year 2015, AEONTS had total revenue of Bt8.73 billion, up by 2 per cent from the same period last year.
The company has active billings of Bt3.46 million per month with 2.26 million active customers, 33 per cent of them in Bangkok.
In the period, credit cards accounted for 47 per cent of total turnover, with income of Bt3.22 billion, increasing by 9 per cent year on year. For the second quarter, credit-card income rose by 9 per cent year on year to Bt1.64 billion, attributed to privileges and campaigns aimed at AEON cardholders such as joint sale promotions with a leading brand and cash-back rewards.
The company granted personal loans for mobile phones, information-technology products and electrical appliances via more than 16,800 dealers, for revenue of Bt4.34 billion, increasing by 2 per cent year on year.
For the second quarter, loan-related income amounted to Bt2.2 billion, up by 1 per cent year on year and 5 per cent quarter on quarter thanks to the growth of revolving loans and interest income from AEON Microfinance (Myanmar) and AEON Microfinance (Cambodia).
AEONTS offers instalment loans for motorcycles, electrical appliances and mobile phone in Thailand and Cambodia. In the second quarter of this fiscal year, revenues from these services were Bt107 million, up by 6 per cent year on year. The main contribution was from Cambodia at Bt91 million, increasing by 31 per cent from last year.
The company says its overseas subsidiaries will continue to grow. It has continued launching promotions with motorcycle manufacturers and suppliers such as Honda and Kawasaki as well as increasing distribution channels for motorcycle sales through its branches, according to the company report.
Thanks to its impressive performance in the first half, the company announced an interim dividend payment at the rate of Bt1.60 per share, totalling Bt400 million or a 31.88-per-cent pay-out ratio. AEONTS will pay the dividend on October 21.
