PETALING JAYA: Affin Bank Bhd’s net profit dived 49.9% to RM72.4 million for its third quarter ended Sept 30, 2019 from RM144.56 million reported in the same quarter of the previous year, mainly due to allowance for credit impairment losses of RM43.11 million.
Its revenue declined 4.4% to RM474.26 million from RM496.25 million.
For the nine-month period, Affin reported a net profit of RM365.66 million, a 1.8% increase from RM359.34 million in the same period a year ago, while revenue was down 1.5% to RM1.44 billion from RM1.47 billion.
The bank told Bursa Malaysia that during the period, its net interest income decreased RM81.9 million, in line with the reduction in financial investments at FVOCI of RM4.8 billion and loans, advances and financing portfolio of RM2.4 billion.
It posted a higher non-interest income of RM588.5 million, a 11.3% increase due to higher net gain on financial instruments of RM106.3 million. The fee-based income, however, reduced by RM28 million to RM320.9 million mainly due to the weaker market environment, particularly in the asset management and stockbroking businesses.
For the first nine months of 2019, the group’s total loans, advances and financing shrunk 4.8% to RM46.6 billion due to rebalancing of portfolios.
As at Sept 30, 2019, its gross impaired loan (GIL) was at 3.42%. It said the two accounts affecting the GIL ratio are from the real estate and oil & gas sectors. Affin expects to resolve one of those accounts by Q1 2020.
Going forward, Affin group CEO Kamarul Ariffin Mohd Jamil said the group will continue to deliver innovative financial solutions to the customers.
source https://www.thesundaily.my/business/affin-bank-earnings-halve-in-q3-on-allowance-for-impairment-losses-GM1680228
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