KUALA LUMPUR (Nov 24): Affin Holdings Bhd saw its net profit for the third quarter ended Sept 30, 2014 (3QFY14) declined 16.6% to RM144.3 million against RM172.97 million last year.

Revenue however expanded 22.65% to RM937.17 million from RM764.04 million in 3QFY13. Earnings per share (EPS) shrank to 7.36 sen from 11.57 sen in the previous corresponding quarter.

Despite lower net profit, Affin has declared an interim single-tier dividend of 15 sen per share for the financial year ending Dec 31, 2014.

For the cumulative nine months ended Sept 30 (9MFY14), Affin's net profit was down 16.8% to RM402.1 million from RM483.11 million. Revenue for the period climbed 13% to RM2.6 billion from RM2.3 billion in 9MFY13.

EPS for the cumulative period stood at 24.18 sen while net assets per share as at Sept 30, 2014 was RM4.14.

In a statement issued in late evening, Affin said its annualised after tax return on equity (ROE) and after tax return on assets (ROA) were 7.3% and 0.9% respectively for the nine-month period.

Affin's annualised loan growth of 7.7% for the nine month period under review was principally in the segments of bills receivables, business term loans and financing, revolving credit, housing loans and financing and margin financing.

"The group's gross loan and deposits from customers (LD) ratio was maintained at 80.7% as at Sept 30, 2014 while the ratio of consumer deposits to total deposits stood at 30%," it said.

On its asset quality, the gross impaired loan ratio for Affin remained unchanged at 1.91% as at Sept 30, while the net impaired loan ratio stood at 0.83%, an improvement of 3 basis points compared to 0.86% as at June 30, 2014.

In line with Bank Negara Malaysia's (BNM) Capital Adequacy Framework, Affin said the Common Equity Tier-1 ratio, Tier-1 Capital ratio and Total Capital ratio for all banking entities within the group remained healthy as at Sept 30, 2014.

Commenting on its ley operating units' financial performance, it said Affin Bank Berhad (ABB) group saw its profit before (PBT) expanded by 23.3% to RM160.6 million from RM130.3 million in 3QFY13.

For the 9MFY14, ABB registered a lower PBT of RM466.2 million as a result of margin compression due to competition on the loans and deposits.

However, the group's investment banking segment now operating under its new brand name, Affin Hwang Capital, reported a PBT of RM84.1 million for the period ended Sept 30, 2014 which includes the acquired businesses of AFFIN Hwang Investment Bank Berhad.

"Post merger integration processes are on track and the synergistic values to-date of approximately RM10 million is ahead of the targeted timeline," it said.

On its Affin Moneybrokers Sdn Bhd, this segment recorded a PBT of RM1.7 million for the cumulative nine months while its PBT for the third quarter was RM0.7 million.

AXA Affin Life Insurance Berhad, a jointly controlled entity of Affin, meanwhile reported a PBT of RM5.3 million for the 9MFY14.

"The company achieved a substantially higher PBT of RM7.9 million for the current quarter under review compared to the pre-tax loss of RM0.9 million registered in 2QFY14," it said.

AXA Affin General Insurance Berhad, a 34.5% associate of the group recorded a 68% higher PBT of RM77.3 million against RM46 million last year.

"PBT for the third quarter of 2014 was RM27.7 million," it added.

Going forward, Affin said all its business segments will be leveraging on synergistic growth to boost the group's position as a major player in the nation as well as the region in line with the group's aim of providing dedicated one stop financial solutions to a wide spectrum of clients.

"The commercial banking segment is optimistic that it will be able to maintain its earnings momentum for the rest of 2014 with a focus on SMEs and contract financing as well as exploring untapped avenues in the retail market while also leveraging on synergies within the LTAT and Boustead Group," it said.

The investment banking segment, according to Affin is set to create a stronghold for the group in the investment banking space with the completion of merger of its investment banking, stockbroking and asset management businesses in addition to the collaboration with Daiwa Securities Group Inc of Japan.

"The insurance segment is expected to register a moderate growth, amidst an increasingly challenging and competitive environment as it focuses on customer centricity, cost management as well as adapting to the constant changes in the digital world which will allow it to reap benefits in the near future," it added.

Affin share price dropped two sen or 0.65% to RM3.05 with 627,400 shares traded. The financial group’s market capitalisation is at RM5.98 billion.