This article first appeared in The Edge Financial Daily on June 1, 2018

KUALA LUMPUR: Affin Bank Bhd’s net profit rose 56.8% to RM141.47 million in the first financial 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 was 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 a 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 2018 ending Dec 31 (FY18), Affin Bank expects competition and challenges for the 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 will also continue to accelerate its digital banking solutions and further improve its [innovation] in offering financial solutions for better customer experience,” it added.