Affin Bank 1Q earnings slip 3% on lower commercial banking, insurance contribution

Affin Bank 1Q earnings slip 3% on lower commercial banking, insurance contribution
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KUALA LUMPUR (May 30): Affin Bank Bhd posted a 3% dip year-on-year in net profit to RM 137.23 million or 6.9 sen per share in the first quarter ended March 31, 2019 (1QFY19), weighed down by its commercial banking and insurance segments.

Revenue also slipped a marginal 0.86% to RM472.52 million, from RM476.62 million in 1QFY18, according to its filing with Bursa Malaysia today.

Looking ahead, it warned that the banking industry is expected to be characterised by moderate loan growth and soft capital markets. 

“The prevailing market conditions, both globally and domestically, will continue to drive volatility and uncertainty in the industry,” the bank said.

The soft economic global outlook is expected to prompt a more cautious approach, with banks focusing on selective asset growth.

Affin said the group is upgrading its capabilities and operating efficiencies, specifically on the digital front, to enrich customer experience.

“The Group will continuously strive to maximise synergistic value and put in place more strategies to drive the next phase of growth and meet the ever-changing business environment and requirements. AFFINBANK’s strategic focus for 2019 will remain on both retail and business banking segments, especially in the SME segment.”

Shares of Affin Bank closed one sen or 0.48% higher to RM2.08 today, valuing it at RM4.13 billion.