AEON Credit controls NPLs, targets 8 percent loan growth

AEON Credit Service (M) Berhad is targeting loan growth of around 8% for the fiscal year 2027. This strategic move aims to balance the risks associated with an increase in non-performing loans (NPLs), as the company navigates current economic pressures.

The projection is influenced by concerns over customer repayment capabilities, which are being impacted by ongoing inflation and global geopolitical uncertainties. These factors create a challenging environment for borrowers and, consequently, for lenders.

Despite recording a 11.4% growth in receivables in the fiscal year 2026, AEON Credit anticipates a more conservative outlook for the upcoming financial year. The company's Chairman, Ng Eng Kiat, stated that the proposed loan growth aims to manage potential risks effectively.

This cautious approach reflects a broader economic sentiment where businesses are reassessing growth strategies in light of economic volatility. AEON Credit's focus on managing NPLs while pursuing moderate growth signals a strategy centered on financial stability and risk mitigation.

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AEON Credit is targeting loan growth of around eight percent for fiscal year 2027 to balance the risk of increasing non-performing loans (NPLs).