Aeon Financial Shares Slump as Southeast Asia Loan-Loss Provision Dragged First-Half Profit
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 kosaku.narioka@wsj.com
(END) Dow Jones Newswires
October 10, 2023 22:42 ET (02:42 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
What History Tells Us About the Fed’s Next Move
-
What’s Happening In the Markets This Week
-
Alphabet’s New Dividend: What Investors Need to Know
-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
Going Into Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?
-
What’s the Difference Between the CPI and PCE Indexes?
-
5 Stocks to Buy That We Still Like After They’ve Run Up
-
Markets Brief: Stocks Are Starting to Look Cheap Again
-
AbbVie Earnings: Next-Generation Immunology Drugs Help Offset Humira Biosimilar Pressure
-
Exxon Earnings: Ignore Earnings Shortfall as Long-Term Growth and Improvement on Track
-
American Airlines Earnings: We See Costs Overshadowing Market Share This Year
-
Snap Earnings: Advertising Growth and Snapchat+ Drive Monetization
-
STMicro Earnings: We Still See an Attractive Margin of Safety Despite a Poor First-Half Forecast
-
Alphabet Shares Surge on Strong Earnings, Dividend Surprise
-
Microsoft Earnings: Firm Beats Forecasts on Strong AI and Cloud Demand
-
PG&E Earnings: Near-Term Regulatory Certainty Supports Industry-Leading Earnings Growth