Affin Bank’s 3Q earnings soar on higher income and lower costs

The higher profit was driven by improved net interest income, Islamic Banking income, net fee and commission income


AFFIN Bank Bhd posted a strong net profit of RM133.2 million in the third quarter ended Sept 30, 2021 (3Q21), from RM48.72 million in the corresponding quarter last year on the back of improved income, lower operating expenses and allowance for impairment losses.

The 173% year-on-year (YoY) jump in earnings for the quarter comes despite revenue for the period falling slightly by 0.78% to RM552.49 million from RM556.85 million in the 3Q20, the bank’s exchange filing on Friday revealed.

Affin Bank stated the higher profit in the quarter was driven by improved net interest income, Islamic Banking income, net fee and commission income while lower operating expenses and allowance for impairment losses helped offset lower gain on sales of financial instruments.

Earnings per share (EPS) for the quarter stood at 6.32 sen.

Affin Bank added its net interest income for the quarter increased by 20.5% to RM232.4 million from RM192.8 million.

Its non-interest income was however down 25.9% YoY to RM185.8 million.

“This was due to lower net gain on sales of financial instruments of RM72.2 million, offset by higher net fee and commission income of RM10.6 million,” stated Affin Bank.

The bank did not declare any dividend for the current quarter.

Affin Bank president and CEO Datuk Wan Razly Abdullah Wan Ali (picture) said that the group will continue with digital applications to provide better services to its customers.

“In line with the rapid development in the digital banking landscape, the bank will continue to boost its digital banking solutions and further improve its services by offering innovative financial solutions for better customer experience,” Wan Razly Abdullah said in a statement accompanying the group’s financial result.

He noted that Affin Bank will also continue its metamorphosis journey of the Affinity in Motion or AIM22 Transformation Programme anchored on five key elements of value creation, to increase productivity and build a strong foundation focusing on digital transformation, cost optimisation and enhanced asset quality.

“The bank will also remain focused in its pursuits for operational excellence, whilst maintaining strong governance, compliance and risk culture,” he added.

The banking group is anticipating a stronger loan growth for the 4Q together with an improvement in its fee income as customers start to increase their business and banking activities.

For the nine-month period ended Sept 30, 2021 (9M21), Affin Bank’s net profit stood at RM320.09 million or EPS of 15.19 sen compared to RM239.69 million or EPS of 11.66 sen in the previous year’s corresponding period.

Net income for the 9M21 period increased to RM1.67 billion from RM1.64 billion in 9M20.

Affin Bank’s shares rose 1.2% or two sen to RM1.68 last Friday, valuing the group at RM3.57 billion.