Board & Managements

Dear Shareholders,

In the light of Thailand’s economic resurgence, GDP 1.9% y-y, particularly in unevenly distributed benefits from the sole recovered tourism sector, which accounting of 18% of GDP, we, therefore, have remained our focus on managing credit and financial risks. Despite the persistent challenges posed by household debt, which is likely to cross 91% in 2024, our proactive risk mitigation measures have fortified our financial resilience, evidenced by the steady enhancement in asset quality from the reduction of Expected Credit Loss quarter over quarter. We remain resolute in our commitment to navigating these challenges ensuring the enduring strength and stability of our financial position.

In summary, for the fiscal year 2023 financial results, our loan receivables amounted to 91,305 million baht, with non-performing loan (NPL) ratio has gradually reduced to 5.0% from 5.7% in the previous year, accompanied by the reduction of Expected Credit Loss (ECL). The Company recorded a net profit attributed to owners of the parent at 3,259 million baht, translating to earnings per share at 13.04 baht. Moreover, the Company distributed an interim dividend of 2.55 baht per share on November 2, 2023, and approved final dividend of 2.95 baht per share to be paid on 17 July, 2024, resulting in a total dividend payout ratio equivalent to 42.2% for the fiscal year 2023.

In the coming year, we project a trajectory for our asset quality, and we are poised to concentrate on acquiring new customers with a focus on growing quality loan receivables. This will be achieved through the implementation of diverse marketing strategies, as well as the introduction of newly launched products in the past year. These include innovative offerings such as EV motorcycle hire purchase, solar cell loans, AEON Auto Quick Cash, which is our vehicle title loan and our groundbreaking AEON NextGen Digital Credit Card, which features advanced security solutions for enhanced customer protection. These products have been designed to address shifts in customer behavior, the evolving competitive landscape and the rapid pace of technological advancement.

Furthermore, our sustainability goals align closely with our mission to build a resilient and sustainable retail financial products and services, we can create long-term value for both our stakeholders and the communities we serve. We recognize the critical role that digitalization plays in enhancing operational efficiency, improving customer experiences, and driving sustainable growth via our digitalization strategy which harness the seamless integration of artificial intelligence (AI) aiming to optimize processes, mitigate risks, and deliver secure financial services for our customers.

Additionally, our sustainability objectives are in alignment with those of the AEON group, in Japan. We prioritize reducing our environmental footprint, aiming for Net Zero emissions by 2040. Furthermore, we are committed to minimizing our social impact by actively contributing to communities and societal welfare through initiatives supported by the AEON Thailand Foundation.

Together, we will navigate the challenges and seize the opportunities that lie ahead, positioning our company as one of leaders in retail financial service provider in Thailand and Mekong region. We want to express my gratitude to our stakeholders for their unwavering support.

Thank you for your trust and confidence in our vision as always.