Affin Bank sees 26% drop in 1Q net profit despite revenue increase

AFFIN Bank Bhd reported a 26% year-on-year decline in net profit for the first quarter ended March 31, 2024 (1Q24), with net profit standing at RM110.21 million compared to RM148.98 million a year earlier

Despite this, , its bourse filing revealed that . revenue increased to RM504.54 million from RM494.29 million in the comparative period.

During the quarter, net interest income (NII) rose by 9.2% quarter-on-quarter (q-o-q) to RM193.7 million, while non-interest income dropped 9.5% q-o-q to RM142.5 million.

Operating expenses decreased slightly to RM378.9 million from RM400.4 million in the preceding quarter, resulting in a cost-to-income ratio increase from 71.57% to 75.11%.

Notably, total loans, advances, and financing in 1Q24 grew by 11.2% year-on-year to RM68 billion, with Casa deposits at RM17.9 billion and group customer deposits increasing by 8.9% to RM71.8 billion.

Affin Group president and CEO, Datuk Wan Razly Abdullah, expressed caution due to geopolitical uncertainties and weak trade demand, emphasising the group’s focus on expanding its CASA franchise and high-margin businesses while optimising costs under the AFFIN Axelerate 2028 (AX28) plan.

He also mentioned the bank’s anticipation of developments regarding shareholding changes involving Lembaga Tabung Angkatan Tentera (LTAT) and Boustead Holdings Bhd, and the state government of Sarawak. — TMR