Af­fin net profit up 8% in Q2

The Sun (Malaysia) - - SUNBIZ -

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 810% 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.

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