By Kosaku Narioka
Aeon Financial Service shares fell sharply after the financial company’s first-half net profit more than halved due partly to higher loan-loss provision in its businesses in Thailand and Malaysia.
The shares were recently 5.9% lower at 1,210.0 yen on Wednesday morning after falling as much as 6.7% earlier.
Aeon Financial Service said Tuesday after the market closed that its net profit dropped 60% from a year earlier to 7.24 billion yen ($48.7 million) for the six months ended Aug. 31. First-half revenue grew 7.2% to Y237.555 billion.
The financial services unit of Japanese retail giant Aeon Co. said loan-loss provision increased in Thailand and Malaysia, as inflation put pressure on household finance. Also, investment in mobile payment service Aeon Pay weighed on earnings at home, it said.
Aeon Financial Service kept its earnings forecasts for the fiscal year ending February 2024. It continues to expect revenue will increase 6.2% to Y480.00 billion and net profit will drop 12% to Y27.00 billion.
Write to Kosaku Narioka at [email protected]
Read the full article here
