Affin's net profit up 4% in Q1

PETALING JAYA: Affin Holdings Bhd reported a 4% increase in net profit to RM120.18 million for the first quarter (Q1) ended March 31, 2017 from RM115.57 million in last year's corresponding quarter, driven by improved operating income, Islamic banking income and net interest income totalling RM82.7 million.
Revenue expanded 19.4% from RM426.92 million to RM509.6 million.
For the period under review, there was an allowance for loan impairment loss of RM5.8 million against a write-back of RM1.6 million in the previous year.
Affin Bank Bhd was the key contributor to the group's overall results, achieving a profit before tax of RM125.3 million in Q1 2017 compared with RM123.1 million in Q1 2016.
Going forward, Affin told Bursa Malaysia on Friday its commercial banking business will place an emphasis on growing its fee-based income, specifically from its digital banking, unit trust and credit card segments.
"We are focused on our strategic plan to strengthen our Islamic financing portfolio, in order for it to contribute to 40% of the overall group by 2020. In terms of loans, household and SME loans will be key drivers for the business, with targeted growth of 6% to 7%."
Affin's investment banking business is expected to benefit from improved market sentiment, especially as economic activity is projected to improve in 2017.