Consumer finance firm Aeon Credit Service (Asia) has blamed tough economic prospects and a high level of personal bankruptcies for its sharp fall in net profit last year.
It is the first time Aeon has failed to record a growth in profit since listing in Hong Kong in September 1995.
The firm, a subsidiary of Aeon Credit Japan, yesterday unveiled a net profit of HK$117.3 million, down 44.4 per cent from HK$211 million in 2001.
It also announced a final dividend of eight HK cents per share, bringing the full-year payout to 13 HK cents.
The drop in profit was fuelled by a 71.4 per cent increase in charges for bad and doubtful debts to HK$403.4 million from HK$235.4 million. Provisions on February 20 were up 58.6 per cent at HK$235.9 million, against HK$148.7 million previously.
'We have taken various measures to tackle the increase in bankruptcy cases, including changing our card recruitment policy,' managing director Masanori Kosaka said.