Affin’s net profit rises 36.4% in third quarter

PETALING JAYA: Affin Holdings Bhd’s net profit grew 36.4% to RM139.65 million for the third quarter ended Sept 30, 2016 against RM102.39 million in the previous corresponding period, driven by higher Islamic banking income and lower allowance for impairment losses on loans, advances and financing.

Revenue was up 9.7% from RM459.79 million to RM504.4 million.

The group has proposed an interim dividend of 3 sen per share.

In a filing with the stock exchange, Affin said its gross impaired loan ratio stood at 2.08% as at Sept 30, in line with the its comprehensive credit and risk management. Its loan loss coverage ratio which includes regulatory reserves was 87.3% as at Sept 30.

The group’s total capital ratio, common equity tier-1 capital ratio and tier 1 capital ratio were healthy and well above regulatory requirements.

Going forward, Affin said it will explore potential business prospects within the Lembaga Tabung Angkatan Tentera (LTAT) or the Armed Forces Fund Board as well as Boustead Group of Companies to capitalise on synergies and opportunities for growth.

The group noted that it will take a cautiously optimistic approach for the investment banking segment.

“The group’s diversified stable of businesses combined with robust capitalisation will be tapped on to mitigate the anticipated market volatility,” it said.

Affin said its focus will remain on driving efficiency as well as collaborating within the group to improve the segment’s ability to present a broader range of products and services to its enlarged clientele.

The group’s life insurance segment is expected to maintain its growth trajectory by focusing on expanding consumer reach through the expansion of distribution channels and tailored product development.

“The group’s general insurance segment will place special emphasis on customer centricity through various transformation projects and a keen focus on digital enabler,” it added.

Affin’s nine-month net profit rose 44.4% from RM271.86 million to RM392.61 million. Revenue came in at RM1.41 billion, 5.3% higher than RM1.34 billion in the same period last year.