by RAHIMI YUNUS
Affin Bank Bhd’s net income grew 18.3% to RM2.26 billion for the financial year ended Dec 31, 2020 (FY20), from RM1.91 billion last year, mainly attributed to higher non-interest income particularly from gains on financial instruments.
The group, however, saw net profit declined by 52% to RM230.3 million for FY20 as compared to RM487.8 million last year, mainly due to Covid-19-related losses.
The group said the bottom lines were affected by higher allowances for credit losses, particularly Covid-19-related pre-emptive provisioning, higher operating expenses and a one-off modification loss relating to Covid-19 relief measures of approximately RM80 million.
In the fourth quarter of FY20, Affin reported a net loss of RM9.36 million against a net profit of RM122.1 million a year ago.
Revenue for the quarter increased by 28.6% to RM620.8 million from RM482.66 million in the same period in 2019.
“2020 has been a tough year for the bank in terms of the financial impact and provisioning that we had to endure because of asset quality issues arising from the Covid-19 economic slowdown.
“However, we have intensified our efforts to help our customers during this difficult period through the moratorium and different financial relief packages with the government’s support,” president and group CEO Datuk Wan Razly Abdullah Wan Ali said in a statement yesterday.
He said the company is optimistic that the government’s rollout of the vaccine programme will accelerate Malaysia’s economic recovery in the coming months.