KUALA LUMPUR (Aug 27): Affin Bank Bhd’s net profit more than doubled to RM156.03 million in the second quarter ended June 30, 2019 (2QFY19) from RM73.31 million a year ago. The improved quarterly earnings were mainly due to the write-back of credit impairment losses.

Affin Bank reported a write-back of credit impairment losses of RM26.27 million in the quarter under review compared with the provision of RM91.87 million in the previous corresponding period. The bank also attributed the better earnings to higher net gains on financial instruments which stood at RM83.87 million compared with RM33.85 million in 2QFY18.

Its earnings per share were at 7.9 sen from 3.8 sen a year ago.

Quarterly revenue growth was nearly flat at RM497.93 million, compared with RM494.18 million in 2QFY18, according to a filing with Bursa today.

The bank’s net income increased 0.76% to RM497.93 million from RM494.18 million in the previous year.

Its net interest income, however, fell 11.2% to RM186.99 million in 2QFY19 from RM210.51 million in the same period last year.

For the cumulative six months ended June 30, 2019, the bank saw its net profit grow 36.55% to RM293.26 million from RM214.77 million a year ago, while revenue was flat at RM970.44 million, against RM970.8 million last year.

The bank’s net interest income slid almost 12% to RM375.67 million, from RM426.32 million a year ago.

On prospects, Affin Bank said the banking industry is expected to be characterised by moderate loan growth and soft capital markets in 2019.

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

Moving ahead, Affin Bank said the group is upgrading its capabilities and operating efficiencies specifically on digital front in enriching 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,” said the bank.

Affin Bank noted that its strategic focus for the current year will remain on both retail and business banking segments, especially in the small and medium enterprise (SME) segment.

In a separate statement today, its group chief executive officer Kamarul Ariffin Mohd Jamil said, “The strong results are testament to the success of our on-going corporate strategy and the achievements to transform the bank to further diversify its products and digitalisation of its business.”

“Our current earnings are reflective of our resilience to remain focused on our key business areas, with the emphasis on organic growth. Besides being the one-stop financial services provider and given the heightened competition in the banking and financial sector, we are all out looking for business opportunities,” he added.

Shares of Affin Bank were down one sen or 0.5% to close at RM1.99 today, valuing the bank at RM3.95 billion. The counter, over the past 12 months, has fallen some 20% from RM2.49.