Aeon Credit gets edge from 24pc jump in sales

Net profit for Aeon Credit Service (Asia) (0900) increased by 2.57 percent year on year in the first half to HK$176.77 million, fueled by a 24.2 percent jump in its overall sales.

Revenue for the financial services company reached HK$571.73 million, an 11.8 percent growth compared with the same period last year.

In its three major segments, credit card revenue rose by 10.3 percent year on year to HK$447.14 million, and that was bettered by the personal loans segment, which soared by 20.7 percent to HK$110.95 million, but insurance revenue fell by 3.5 percent to HK$13.65 million.

Deputy managing director Derek Lai Yuk-kwong said that the rising one-month Hong Kong interbank offered rate had a minor impact on the businesses of the company as most of them are related to credit cards and as interest rates are fixed.

Lai also said that the SAR administration's easing of its quarantine policy can boost the local economy as more travelers will come, driving an increase in local economic activities and encouraging more locals to take trips, which can fuel consumption and credit card use.

The company declared an interim dividend of 22 HK cents per share, representing a dividend payout ratio of 52.1 percent.

Aeon's news came as Sitoy Group (1023) swung back to a net profit of HK$111.63 million in the first half from a net loss of HK$150.25 million a year ago, mainly due to the retail business benefiting from livestream sales, especially in Hong Kong and the mainland markets.

The company declared a special dividend of two HK cents.