Wednesday 24 Apr 2024
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KUALA LUMPUR (May 31): Affin Bank Bhd's net profit rose 56.8% to RM141.47 million in the first quarter ended March 31, 2018 (1QFY18) from RM90.23 million a year ago, mainly due to the increase in net fee and commission income, net gain on financial instruments, Islamic banking income and net interest income of RM92.6 million, RM28.5 million, RM21.5 million and RM12.5 million respectively.

The improved quarterly earnings were also due to a write-back of credit impairment losses of RM15.7 million compared with a charge of RM6.7 million in 1QFY17, partially offset by higher overhead expenses.

This resulted in higher earnings per share of 7.3 sen for 1QFY18 compared with 5.3 sen for 1QFY17.

Quarterly operating income also jumped 48% to RM476.62 million from RM322.03 million a year ago.

For the remaining period of financial year ending Dec 31, 2018 (FY18), Affin Bank expects competition and challenges for retail market and fixed deposits will stir up due to the changes in the financial environment, financial reforms not only from the existing players but also from the non-financial services competitors.

"The bank will continue to leverage on the group's strengths to further develop its business and improve its market position. The bank is expected to maintain its market position by focusing on opportunities in the retail, small and medium enterprises (SMEs) and corporate, as well as transactional banking segment.

"The bank will also continue to accelerate its digital banking solutions and further improve its innovativeness in offering financial solutions for better customer experience," it added.

On investment banking, Affin Bank said it remains positive on the industry outlook for 2018 and will continue to build resilience across its businesses, and drive efficiency savings in its business operations, with collaborative efforts across the larger Affin banking group to better serve its clientele base.

Market conditions in the general insurance market, meanwhile, are still expected to be challenging in 2018 as impact of motor and fire detariffication will be felt more profoundly. "AXA Affin General Insurance Bhd will focus on selective growth and harness benefits from transformation projects undertaken, while continuing its journey to be a customer centric insurer," said the group.

Affin Bank shares gained one sen to close at RM2.46 today, giving it a market capitalisation of RM4.78 billion.

 

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