Affin Bank’s 2Q19 earnings jump more than 100%

By SHAZNI ONG / Pic By TMR File

AFFIN Bank Bhd’s earnings for the second quarter ended June 30, 2019 (2Q19), grew 112.85% year-on-year (YoY) to RM156.03 million due to a write-back of credit impairment losses and higher net gain on financial instruments.

The figure was partially offset by lower net interest income, other income, share of result of an associate and net fee and commission income.

Its earnings per share for the period was 7.9 sen, while the quarter revenue rose 0.76% YoY to RM497.93 million.

For the cumulative six months, Affin Bank posted a 36.54% YoY jump in net profit to RM293.26 million while revenue for the period marginally decreased to RM970.44 million versus RM970.79 million recorded a year earlier.

On the prospects for the financial year 2019, Affin Bank noted 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. Caution will prevail in the industry due to the soft economic outlook globally and selective asset growth will be the focus for the banks,” it said in a release yesterday.

The group is upgrading its capabilities and operating efficiencies specifically on the digital front in enriching customer experience.

“In the second half of 2019 (2H19), customers can look forward to more digital offerings with the new AffinPay e-wallet which was launched in June 2019. The new retail Internet banking and mobile Internet banking are also in the pipeline,” the bank stated yesterday.

On the corporate banking side, its new transaction banking system will enable Affin Bank to bring onboard new customers and enhance existing customers’ experience.

Affin Bank said it 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.

In a separate statement, Affin Bank CEO Kamarul Ariffin Mohd Jamil (picture) said the group will continue to deliver stable growth and strong financial performance in 1H19.

“The strong results are a testament to the success of our ongoing 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,” he said.