Affin Group posts RM494.7 mln profit before tax, achieving 10pct growth amid strategic expansion

By DayakDaily Team

KUCHING, Nov 22: Affin Group reported a profit before tax (PBT) after zakat of RM494.7 million for the nine months ending Sept 30, 2024 (9M2024), reflecting a 10 per cent increase from RM449.7 million in the same period last year (9M2023).

Total assets grew to RM112.1 billion, up 9.7 per cent from RM102.1 billion in the previous year, indicating continued business growth.

President and Group chief executive officer of Affin Bank Berhad Datuk Wan Razly Abdullah attributed the Group’s positive performance to its transformative journey, characterised by agile execution and a strong balance sheet.

He emphasised that this puts the Group on track for sustainable growth despite macroeconomic and geopolitical challenges.

“Our results for this quarter highlight the progress we are making towards its AX28 Plan strategic pillars—Unrivalled Customer Service, Digital Leadership, and Responsible Banking With Impact.

“The launch of our exclusive private banking segment, Affin Diventium, on Sept 3, 2024, further diversifies our business model and caters to the sophisticated needs of Very-High-Net-Worth Individuals. This strategic move will contribute to Affin Group’s business momentum,” he said in a media release today.

Net interest income (NII) for the period stood at RM600.7 million, a slight decrease of RM4.9 million or 0.8 per cent compared to RM605.6 million in the previous financial period.

Affin Islamic Bank Berhad reported a PBT of RM202.7 million, marking a 7.3 per cent decline due to higher operating expenses.

Non-interest income increased to RM513.3 million, up RM63.7 million or 14.2 per cent from RM449.6 million in the previous corresponding period.

The Group’s Gross Impaired Loan (GIL) ratio improved to 1.74 per cent from 1.84 per cent in 9M2023. The Loan Loss Coverage (LLC) ratio stood at 101.19 per cent, while the Loan Loss Reserve (LLR) ratio was at 123.74 per cent, both well above the 100 per cent threshold.

Operating expenses increased to RM1,202.6 million in 9M2024 from RM1,020.7 million in the prior year. The Cost-to-Income ratio for the period rose to 74.6 per cent, up from 68.1 per cent in 9M2023.

Total loans, advances, and financing grew by 9.9 per cent year-on-year (YoY) to RM70.6 billion, driven by a 12.0 per cent increase in the Community Banking segment. The Corporate Banking and Enterprise Banking segments also grew by 6.5 per cent and 4.7 per cent, respectively. Housing loans increased by 10.4 per cent, while Auto Finance loans grew by 7.6 per cent.

On the deposit side, the Group’s customer deposits rose by 3.3 per cent YoY to RM74.0 billion. The Current Account/Savings Account (CASA) balance stood at RM19.9 billion, with a CASA ratio of 26.86 per cent as of Sept 30, 2024.

The Group’s capital position remains strong, with a Total Capital ratio of 17.22 per cent, Tier 1 capital ratio of 14.68 per cent, and Common Equity Tier 1 (CET1) capital ratio of 13.27 per cent. The Liquidity Coverage Ratio (LCR) remains healthy at 159.89 per cent, well above the regulatory requirement of 100 per cent. — DayakDaily

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