AFFIN Bank Group reported profit before tax of RM1,324.9 million, an increase of 182.5% for the nine months ended 30 September 2022 (9M2022) as compared to the same period last year (2021). The Group also reported an increase in its net income in 9M2022 which rose by 63.6% or RM2,730.6 million versus RM1,669.0 million in 9M2021.
According to Datuk Wan Razly Abdullah, President & Group Chief Executive Officer of Affin Bank Berhad, contributing to the PBT increase was its Net Interest Income (NII) which rose by RM105.5 million or 16.2% to RM756.1 million compared to 9M2021 as well as Affin Islamic Bank Berhad, a significant contributor to the Group, posted a PBT increase of 62.3% to RM233.9 million due to a more robust financing growth.
Overall, the Group’s loan and financing grew by 16.6% year-on-year (YoY) with its Net Interest Margin (NIM) expanded to 2.01% from 1.95% in 9M2021, as the Group focuses on building its CASA (Current Account/Savings Account) franchise.
The Group continued to show significant improvement in Gross Impaired Loan (GIL) ratio as GIL decreased further to under 2% or exactly 1.91% as compared to 3.14% as at 9M2021 due to strong recovery efforts and tighten underwriting standards. The Group continued to strengthen its reserves evident by its significant increase in Loan Loss Coverage (LLC) and Loan Loss Reserve (LLR) at 112.25% and 150.00%, respectively, thus achieving its AIM22 target ahead of schedule.
“Our financials continue to demonstrate resiliency, stable and consistent growth. With the year coming to a close, I’m pleased to report that the Group has met and even exceeded several of our AIM22 targets. We will now focus our efforts to realise our A25 transformation plan which will see us for the next three years (2023 to 2025) focusing on these three (3) pillars – Unrivalled Customer Service, Digital Leadership, and Responsible Banking with Impact,” said Datuk Wan Razly.
Under the A25 plan, the Group aims to achieve 10% Return on Equity (ROE), drive revenue growth and double its customer base to 2 million by 2025, and it will be doing so by focusing on retail community banking and SME enterprise banking. The Group will also push its digitalisation plan which will see an increase in its information technology capital expenditure to about RM330 million in 2023 from RM316 million this year.
Net interest income (NII) was recorded at RM756.1 million, an increase of RM105.5 million or 16.2% as compared to the previous financial period of RM650.6 million, mainly due to loan growth of 16.6%. AFFIN Islamic Bank Berhad was a significant contributor to the Group as its PBT recorded an increase of 62.3% to RM233.9 million due to financing growth. AFFIN Islamic Bank’s stronger PBT was due to more robust financing growth which grew by 19.1% YoY. AFFIN Islamic Bank Berhad recorded a significant improvement of asset quality of 0.56% in Gross Impaired Financing to 0.84% n 9M2022 as compared to 1.40% in 9M2021.
Non-interest income for the period under review was RM1,470.9 million, an increase of RM842.3 million or 134.0% from RM628.6 million registered in the previous corresponding period. The increase was largely attributed to the one-off gain received following the divestment of Affin Hwang Asset Management Bhd offset by a lower net gain on sales of financial instruments, other income, net fee, and commission income.
