Elk-Desa set on driving down impaired loans

PETALING JAYA: Elk-Desa Resources Bhd will continue to sustain a growth trajectory by expanding its hire-purchase receivables with a growth target in the lower to mid teens, according to chief financial officer Teoh Seng Hee.

In its first quarter ended June 30, 2024 for financial year 2025, the non-bank lender’s earnings slipped 4% year-on-year (y-o-y) to RM8.14mil or an earnings per share of 1.79 sen.

Revenue, however, grew 17% y-o-y to RM45.88mil due to an increase in its impairment allowance and other expenses, and higher contribution from both its hire-purchase and furniture segments.

Elk-Desa’s hire purchase receivables as at June 30, 2024 stood at RM668.34mil, a 16% improvement against the previous year’s RM574.47mil.

In its filing with Bursa Malaysia, Elk-Desa noted it will pay special attention to drive down its impaired loans ratio.