By NG MIN SHEN / Graphic By TMR
AFFIN Bank Bhd’s net profit jumped more than threefold to RM144.56 million in the third quarter ended Sept 30, 2018 (3Q18), from RM39.9 million recorded a year ago, mainly on higher income from its commercial banking segment comprising Affin Bank and Affin Islamic Bank Bhd.
Revenue for the quarter was 51.3% higher at RM496.25 million compared to RM327.95 million registered a year earlier, the group told Bursa Malaysia yesterday.
For the nine months ended Sept 30, 2018 (9M18), the banking group’s net profit increased 44.7% to RM359.34 million from RM248.32 million achieved last year, while revenue rose 42.7% to RM1.47 billion from RM1.03 billion previously.
“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,” it said.
These were partially offset by the increase in overhead expenses, allowance for credit impairment losses and allowance for impairment loss on other assets of RM299.7 million, RM3.9 million and RM12.1 million respectively.
The group’s share of profit in associates was also higher by RM38.5 million for the period under review.
The bank’s interest income rose to RM1.8 billion from RM1.7 billion on loans growth during 9M18.
Loans, advances and financing expanded 6.9% to RM49.2 billion as at end-September 2018, while total deposits jumped 9.7% to RM55.9 billion.Total assets rose 8% to RM75.6 billion as at end-September 2018.
Affin Bank’s higher earnings before tax for 3Q18 and 9M18 were attributed to stronger non-interest income and lower overhead expenses, with the latter being due to lower personnel and establishment costs net of higher marketing expenses.
Affin Islamic Bank’s increased profit before tax (PBT) for 3Q18 and 9M18 were mainly underpinned by higher operating income in line with financing growth of 20.2%.
AXA Affin General Insurance Bhd — the group’s general insurance arm — reported higher PBT for 9M18, supported by higher gains on sale of investment and stable underwriting results.
Meanwhile, Affin Bank group CEO Kamarul Ariffin Mohd Jamil said the bank is “particularly very pleased” with its results for 3Q18.
“Looking ahead with a balanced growth strategy, we expect our loans growth to accelerate, driven by a robust pipeline and investments that we have made in proprietary banking technologies and also expanding our commercial platforms,” he said.
Going forward, the bank said its focus will be on the retail, small and medium enterprise, and corporate banking segments amid slow economic activity, volatile oil prices, global trade tensions and concern on the status of national debt.
Affin Bank declared a single interim dividend of five sen per share for the financial year ending Dec 31, 2018.