AEON Financial Service grew revenue by 11.9% in the six months to August 31, 2026, but operating profit fell 11.0%. Operating revenue reached ¥311.2bn and operating profit ¥25.2bn, according to its interim results. Ordinary profit was ¥26.0bn, also down 11.0%.
What the company blames
The company attributes the squeeze to two items: higher financial costs, such as deposit interest, after domestic policy rates rose, and one-time costs tied to renewing its core credit card system. The renewal was completed in June 2026 and the system is running stably, the company says. Financial expenses were ¥40.3bn, against ¥27.7bn a year earlier. The results do not say how large the system-renewal costs were, so the split between the two causes is not disclosed.
At Aeon Bank, deposit balances were ¥5.42tn, ¥48.5bn lower than at the start of the period, and the company describes deposit competition as intensifying.
Domestic profit falls, overseas holds
Domestic segments carried the decline. Domestic revenue rose 9.6% to ¥181.3bn, but segment operating profit fell 36.9% to ¥6.0bn. Retail profit dropped 35.2% and solutions profit 48.4%. The company says retail revenue benefited from a higher shopping revolving fee rate and larger loan interest, while bank deposit interest weighed on profit. In solutions, it names the card-system renewal costs.
Overseas revenue rose 14.2% to ¥131.0bn and segment profit edged up 2.2% to ¥19.2bn. Within that, the Mekong region fell 18.3%, which the company ties partly to higher credit-related costs in Cambodia, while China-region and Malay-region profits rose 20.3% and 14.0%.
| Segment | Revenue | Revenue change | Operating profit | Profit change |
|---|---|---|---|---|
| Domestic retail | ¥134.7bn | +9.9% | ¥3.1bn | -35.2% |
| Domestic solutions | ¥102.7bn | +7.7% | ¥3.3bn | -48.4% |
| Domestic total | ¥181.3bn | +9.6% | ¥6.0bn | -36.9% |
| Overseas: China region | ¥20.0bn | +16.4% | ¥6.4bn | +20.3% |
| Overseas: Mekong region | ¥51.7bn | +4.8% | ¥6.5bn | -18.3% |
| Overseas: Malay region | ¥59.4bn | +23.0% | ¥6.3bn | +14.0% |
| Overseas total | ¥131.0bn | +14.2% | ¥19.2bn | +2.2% |
Net profit and comprehensive income diverge
Profit attributable to owners of the parent rose 14.9% to ¥10.1bn. The prior-year period included a ¥9.5bn loss on the sale of subsidiary shares and a ¥2.8bn impairment charge; this period's impairment was ¥0.5bn and no subsidiary-share loss was listed.
Comprehensive income, which also counts unrealised movements, was a loss of ¥8.3bn, against a ¥9.5bn gain a year earlier. Other comprehensive income included a ¥42.8bn fall in valuation differences on securities, partly offset by a ¥20.4bn gain on deferred hedges. Net assets fell to ¥606.7bn, ¥18.5bn lower than at the previous year-end.
Guidance unchanged
The company left its full-year forecast as announced on April 8, 2026: operating revenue of ¥600.0bn, operating profit of ¥45.0bn (down 25.8%) and net profit of ¥15.0bn (down 28.9%). The interim dividend is ¥25 a share, with a ¥28 year-end payout forecast.