Affin Bank’s 3Q net profit plunges 50% to RM72.5m

By S BIRRUNTHA / Pic By TMR

AFFIN Bank Bhd’s net profit for the third quarter ended Sept 30, 2019 (3Q19), fell 50% year-on-year (YoY) to RM72.49 million from RM144.56 million recorded a year ago due to net allowance on credit impairment losses.

Its revenue for the quarter has also dropped 4% to RM474.26 million from RM496.25 million registered in the same corresponding period.

The bank’s earnings per share for the quarter dipped 51% from 7.44 sen to 3.65 sen.

However, for the nine months period (9M19), Affin Bank’s net profit increased 2% to RM365.66 million from RM359.34 million in the same period a year ago.

“Our continued earnings growth for the nine-month period under review are testament of the initiatives and steps we have taken to deliver good results despite the challenging external environment,” CEO Kamarul Ariffin Mohd Jamil (picture) said in a media statement.

In an exchange filing yesterday, the bank said the quarter’s slower growth is a result of the slowdown in domestic demand, due to sharper decline in total investment and slower growth in private consumption.

For the first nine months this year, the group’s total loans, advances and financing shrunk by 4.8% to RM46.6 billion due to rebalancing of portfolios.

“Caution will prevail in the industry due to the soft economic outlook globally and selective asset growth will be the focus for the banks,” the bank said in a statement yesterday.

“The banking industry is expected to continue characterised by moderate loan growth and soft capital markets,” it added.

Currently, Affin Bank is upgrading its capabilities and operating efficiencies specifically on digital front in enriching customer experience, by introducing e-wallet services and retail internet banking.

The bank said its strategic focus for the 4Q19 will remain on both retail and business banking segments, especially in the small and medium enterprise.