KUALA LUMPUR (Nov 28): Affin Bank Bhd’s net profit more than tripled to RM144.56 million in the third quarter ended Sept 30, 2018 (3QFY18) from RM39.9 million a year ago, on higher net fee and commission income, net gain on financial instruments, Islamic banking income and other operating income.

This resulted in a higher earnings per share of 7.44 sen for 3QFY18 compared with 2.36 sen for 3QFY17.

Quarterly net income rose 51.3% to RM496.25 million from RM327.95 million a year ago.

The bank also declared an interim dividend of 5 sen per share for the financial year ending Dec 31, 2018 (FY18). Its board of directors has approved that the dividend reinvestment plan be applied to the interim dividend.

For the cumulative nine months ended Sept 30, 2018 (9MFY18), Affin Bank reported a 44.7% increase in net profit to RM359.34 million from RM248.32 million a year ago, while net income rose 43% to RM1.47 billion from RM1.03 billion in 9MFY17.

The improved performance was mainly due to the increase in Islamic banking income of RM64.6 million, net fee and commission income of RM273.4 million, net gain and losses on financial instruments of RM73.1 million and other operating income of RM19.5 million.

These were partially offset by the increase in overhead expenses of 299.7 million, allowance for credit impairment losses of RM3.9 million  and allowance for impairment loss on other assets of RM12.1 million.

Loans growth was 6.9% to RM49.2 billion in 9MFY18.

Affin Bank group chief executive officer Kamarul Ariffin Mohd Jamil said the bank made progress with the implementation of its strategy in a number of areas during the current quarter under review and focused on making it a high performing diversified bank.

“Looking ahead, with a balanced growth strategy we expect our loan growth to accelerate, driven by the combination of a robust pipeline and investments that we have made in proprietary banking technologies and also expanding our commercial platforms,” he said in a statement.

Affin Bank shares closed up 2 sen or 0.87% at RM2.31 today, for a market capitalisation of RM4.49 billion.