Affin net profit up 8% in Q2

PETALING JAYA: Affin Holdings Bhd’s second quarter ended June 30, 2017 net profit was up 8% on higher net income, in particular, a RM52 million jump in other operating income.
The group made a net profit of RM148.4 million for the quarter under review, compared with RM137.4 million for the same quarter in the year 2016.
This was despite impairment losses on loans and advances going up to RM35.9 million, from RM2.2 million for the same quarter in 2016.
This was on a 23% increase in revenue to RM588.3 million for the quarter under review, compared with RM476.7 million for the quarter ended June 30, 2016.
Affin said as at June 30, 2017, Total Capital ratio, Common Equity Tier-1 Capital ratio and Tier 1 Capital ratio of all banking entities within AFFIN remained at healthy levels, well above minimum regulatory requirements. Total Capital Ratio for AFFIN Bank Bhd and AFFIN Hwang Investment Bank Bhd stood at 18.1% and 36.6% respectively.
The group said in a filing with Bursa Malaysia, the bank’s strategic objectives will be focusing on strengthening its fee-based income from digital banking, unit trust and credit card to mitigate the impact of margin compression on net interest income.
The bank is targeting a loan growth of 8-10% for 2017 and its Islamic division is expected to grow by 15%, supported by the implementation of “Priority Islamic” approach and AFFINITY Transformation Program initiatives.
Priority is also placed on increasing deposits to further strengthen the bank’s liquidity and funding profile.
The group made a 6% jump in net profit to RM268.6 million for the six month period ended June 30, 2017, compared with RM253 million for the same period in 2016.
Revenue for the period was also higher at RM1.1 billion for the six month period ended June 30, 2017, compared with RM903.6 million for the same period in 2016.
The group’s share price was up two sen to close at RM2.55 today. It has a market capitalisation of RM4.95 billion.