In FY2022, the Group's revenue increased by 17.3% year-on-year to
The solid increase in revenue in FY2022 was mainly attributable to the launch of the Group's first ever cashback credit card, AEON Card Wakuwaku (the "Wakuwaku Card"), supported by successful mass promotion and brand building activities, which resulted in a significant increase in both credit card and personal loan sales, and thus interest income. The Group achieved an overall sales growth of 32.7% year-on-year, with the total advances and receivables balance at
The Group implemented a number of initiatives in a timely manner to achieve healthy growth in both sales and receivables and to maintain a quality portfolio during the Reporting Year, as consumer spending rebounded remarkably in
Separately, for fee business, the Group has significantly increased the scale of its card acquiring business and continued to take on new merchants with relatively sizable transaction volumes and/or with multi-distribution networks. Moreover, the Group entered into a new distribution partnership agreement in the second quarter to expand its offline and online insurance sales channels, allowing the Company's customers to access and purchase a wide range of insurance products more conveniently.
To accelerate its digital transformation, the Group's new card and loan system project, net-member and mobile application systems, and data lake project were successfully launched in early
On the sustainability front, the Group secured a sustainability-linked loan framework and entered into agreements for sustainability-linked loans (the "Loans") in the third quarter, with a total carrying amount of
Looking ahead, with the regulatory changes in the interest rate cap and the threshold of extortionate rate under the Money Lenders Ordinance, the Group is presented with opportunities to leverage its strong capital base to pursue business expansion and to acquire asset portfolios from competitors in the coming year.
In response to the evolving consumer finance behaviour in the wake of the Pandemic, the Group will continue to offer enhanced digital experiences and create more "value" for online purchases by offering cash rebates. It will also revamp its branch network to meet the needs of customers who seek face-to-face advisory services. Following the completion of upgrades to the card and loan systems and the launch of new mobile applications and a net-member platform; new services and rewards, including mobile wallets and virtual card solutions, will be continuously offered in the coming year to manage market changes and new customer needs.
As both the US Federal Funds Rate and the Hong Kong Prime Rate are expected to remain high in 2023/24, the Group will expand its other sources of revenue, namely fee income, to help mitigate the impact on net interest income from a declining interest spread. For the card acquiring business, the Group will upgrade its acquiring system platform and work with other payment solution providers to extend the merchant network and to add in new services. Regarding the insurance agency business, the Group will expand its direct sales team and explore new insurance products to meet the needs of its customers.
In terms of technology development, with the completion of the card and loan system replacement project, the Group can promote new product benefits by enhancing digital marketing and providing premium user experiences or new payment solutions to its customers. Moreover, the effectiveness of the Group's marketing, credit assessment and credit management activities are expected to improve with the support of data analytics tools.
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