Letter to Shareholders
I would like to express my sincere gratitude to all ACOM stakeholders for your continuous patronage to the Group.
The competitive structure of domestic personal card loan market remained to involve different players among bank and nonbank categories. The portion represented by banks remained in negative growth as banks continued voluntary measures.
Nonbank sector, on the other hand, saw steady decrease in the requests for interest repayment. However, we need to keep a close eye on its future trend due to its high susceptibility to the impacts of changes in the external environment.
In such an environment, the Company Group has strived to expand its shares in the market for personal card loans under its management vision of “strive to become the leading company in personal loan market which provides prime satisfaction to the utmost number of customers and win their trust in return.”
As of September 30, 2019, receivables outstanding of loan and credit card business saw smooth increase by 4.0% year-on-year to 906.5 billion yen owing to increases in loans receivable and installment receivables. Likewise, guaranteed receivables of guarantee business saw smooth increase by 1.4% year-on-year to 1,223.9 billion yen. Meanwhile, receivables outstanding of overseas financial business decreased due to exclusion of consolidated subsidiary, PT. Bank Nusantara Parahyangan, Tbk., following sales of all holding shares of the said company. Nonetheless, overall consolidated receivables outstanding increased by 1.1% year-on-year to 2,327.7 billion yen.
As for the requests for interest repayment, number of requests is in steady decreasing trend. However, recent rate of decrease is slowing down.
With regard to business performance, consolidated operating revenue increased by 1.4% year-on-year to 139.2 billion yen while consolidated operating expenses decreased by 1.0% year-on-year to 88.4 billion yen. Thus, the Company Group recorded following results: operating profit of 50.8 billion yen, ordinary profit of 50.1 billion yen, and profit attributable to owners of parent of 45.0 billion yen.
As mentioned above, the Company Group is making smooth progress toward targets set under medium-term management plan.
Under current circumstances, we decided to pay 2 yen for interim dividend as initially planned. We expect year-end dividend of 2 yen, total of 4 yen in annual, for the year ending March 2020.
We will endeavor to meet stakeholders’ expectations, maximize corporate value through sustainable growth, and become a corporate group that contributes to society as we keep close cooperation with MUFG Group.
I humbly ask for your ongoing support as we embrace the challenges for the future.