Af­fin’s net profit rises 36.4% in third quar­ter

The Sun (Malaysia) - - SUNBIZ -

PE­TAL­ING JAYA: Af­fin Hold­ings Bhd’s net profit grew 36.4% to RM139.65 mil­lion for the third quar­ter ended Sept 30, 2016 against RM102.39 mil­lion in the pre­vi­ous cor­re­spond­ing pe­riod, driven by higher Is­lamic bank­ing in­come and lower al­lowance for im­pair­ment losses on loans, ad­vances and fi­nanc­ing.

Rev­enue was up 9.7% from RM459.79 mil­lion to RM504.4 mil­lion.

The group has pro­posed an in­terim div­i­dend of 3 sen per share.

In a fil­ing with the stock ex­change, Af­fin said its gross im­paired loan ra­tio stood at 2.08% as at Sept 30, in line with the its com­pre­hen­sive credit and risk man­age­ment. Its loan loss cov­er­age ra­tio which in­cludes reg­u­la­tory re­serves was 87.3% as at Sept 30.

The group’s to­tal cap­i­tal ra­tio, com­mon eq­uity tier-1 cap­i­tal ra­tio and tier 1 cap­i­tal ra­tio were healthy and well above reg­u­la­tory re­quire­ments.

Go­ing for­ward, Af­fin said it will ex­plore po­ten­tial busi­ness prospects within the Lem­baga Tabung Angkatan Ten­tera (LTAT) or the Armed Forces Fund Board as well as Boustead Group of Com­pa­nies to cap­i­talise on syn­er­gies and op­por­tu­ni­ties for growth.

The group noted that it will take a cau­tiously op­ti­mistic ap­proach for the in­vest­ment bank­ing seg­ment.

“The group’s di­ver­si­fied sta­ble of busi­nesses com­bined with ro­bust cap­i­tal­i­sa­tion will be tapped on to mit­i­gate the an­tic­i­pated mar­ket volatil­ity,” it said.

Af­fin said its fo­cus will re­main on driv­ing ef­fi­ciency as well as col­lab­o­rat­ing within the group to im­prove the seg­ment’s abil­ity to present a broader range of prod­ucts and ser­vices to its en­larged clien­tele.

The group’s life in­surance seg­ment is ex­pected to main­tain its growth tra­jec­tory by fo­cus­ing on ex­pand­ing con­sumer reach through the ex­pan­sion of dis­tri­bu­tion chan­nels and tai­lored prod­uct de­vel­op­ment.

“The group’s gen­eral in­surance seg­ment will place spe­cial em­pha­sis on cus­tomer cen­tric­ity through var­i­ous trans­for­ma­tion projects and a keen fo­cus on dig­i­tal en­abler,” it added.

Af­fin’s nine-month net profit rose 44.4% from RM271.86 mil­lion to RM392.61 mil­lion. Rev­enue came in at RM1.41 bil­lion, 5.3% higher than RM1.34 bil­lion in the same pe­riod last year.

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