AFFIN SET TO DRIVE EFFICIENCY SAVINGS
Group will continue to improve with new and sustainable initiatives, with major focus on digitisation
KUALA LUMPUR
AFFIN Holdings Bhd will push forward to drive efficiency savings in its business operations to better serve its enlarged clientele.
The bank is encouraged by improving investment banking market sentiment in the first half of this year.
Affin’s net profit in the second quarter ended June 30 increased 8.01 per cent to RM148.41 million from RM137.40 million in the same period a year ago, due to an increase in other operating income, Islamic banking income and net interest income.
A filing to the stock exchange on Wednesday showed that the bank’s revenue surged 23.40 per cent to RM588.29 million from RM476.72 million in the same period previously.
Affin’s earnings per share for the six months under review increased to 13.82 sen from 13.02 sen for the same period in the previous year.
The bank said it will be focusing on its strategic objectives to strengthen its fee-based income from digital banking, unit trust and credit card to mitigate the impact of margin compression on net interest income.
“We target a loan growth of between eight and 10 per cent for this year and our Islamic division is expected to grow 15 per cent, supported by the implementation of priority Islamic approach and Affinity Transformation Programme initiatives,” it said.
“The major focus will also be on accelerating the digitisation of the business, to enable the bank to effectively compete in the rapidly evolving financial services landscape in addition to the initiatives to enhance its transactional banking capabilities as well as to improve its non-financing income stream,” said the banking group.
The financial services provider is bullish on the group’s diversified businesses on the back of sustainable domestic banking system, healthy credit and liquidity conditions.
The group remains positive on the country’s macroeconomic fundamentals and would continue to build resilience across its business.
“While Malaysia’s macroeconomic fundamentals remain sound, we remain cautiously optimistic of our future prospects and will continue to build product and service capabilities across businesses to better serve clientele,” said the company.
The group’s banking division’s earnings have seen an improving trend and are expected to continue to improving with new and sustainable business model initiatives as well as opportunities for profitable growth undertaken through the Affinity Transformation Programme.
The bank said it would remain optimistic and continue to support its strategic vision in providing excellent banking services to meet customer needs and expectations.