Banking group. Affin recorded a Profit Before Tax of RM1.549 billion an increase of 120.2% for the financial year ended 2022 as compared to the last financial year. The Group also recorded an increase in its net income which rose by 47.1% or RM1.056 billion to RM3.29 billion versus RM2.24 billion in FY2021. The Return on Equity (ROE) has also improved to 12.6% in FY2022 as compared to 5.4% in FY2021.
President & Group Chief Executive Officer of Affin Bank Berhad, YBhg. Datuk Wan Razly Abdullah said, “The improvement in PBT was supported by an increase in Group Net Interest Income (NII) which rose by 13.9% or RM124.5 million to RM1,023.4 million compared to FY2021 and an increase of 39.3% to RM346.0 million in the PBT of Affin Islamic Bank Berhad. The strong growth in Group PBT was also contributed by the gains from our divestment of Affin Hwang Asset Management Berhad (AHAM).
Overall, the Group’s loan and financing portfolios grew by 15.4% year-on-year (YoY) with its Net Interest Margin (NIM) expanded to 2.01% from 1.97% in FY2021, as the Group focuses on growing its CASA (Current Account/Savings Account) franchise. AFFIN Group continued to show significant improvement in Gross Impaired Loan (GIL) ratio as GIL decreased to 1.97%, as compared to 2.54% as at FY2021 due to strong recovery efforts and lighter underwriting standards. The Group continued to strengthen its reserves as evident by the increase in Loan Loss Coverage (LLC) and Loan Loss Reserve (LLR) at 109.0% and 150.0% respectively, as compared to LLC of 72.5% and LLR of 130.2% in FY2021.
In view of the stellar performance, the Board has proposed a final dividend of RM176.7 million or 7.77 sen per share for FY2022 bringing the total dividend to 30.39 sen per share after the special and interim dividend of 22.62 sen that was paid to shareholders on 29 December 2022. This represents a total dividend payout of RM677.1 million or 53.3% of the Group’s net profit for FY2022.
