Affin Bank Bhd’s net profit for the second quarter ended 30 June 2023 (2Q 2023) was lower at RM113.23 million against RM146.91 million in the same period a year ago.
Its revenue also eased to RM504.86 million in 2Q from RM579.19 million previously, it said in a filing with Bursa Malaysia. Meanwhile, for the first half of 2023 (1H 2023), the bank’s net profit also slipped to RM262.205 million compared with RM289.59 million in the same period a year earlier, mainly due to net interest margin (NIM) compression.
Net interest income (NII) recorded RM436.2 million, a decrease of RM51.9 million or 10.6 per cent compared to the previous financial period of RM488.1 million, mainly due to the higher cost of funds in 1H 2023.
“Operating expenses decreased slightly to RM646.4 million for the period ended 30 June 2023, compared to RM690.8 million in the previous year,” it said.
“Affin group has witnessed consistent growth, which is illustrated by our loan and financing portfolios that have risen to RM62.5 billion in 1H 2023, marking an impressive increase of 12.7 per cent from RM55.4 billion in the same period the previous year,” it said.
As of 30 June, it said the gross impaired loan (GIL) ratio for the group recorded a significant improvement of 1.78 per cent as compared to 2.28 per cent as of 30 June 2022, the lowest in the last five years. The liquidity coverage ratio remains healthy at 203 per cent in 1H 2023, well above the regulatory requirement of 100 per cent.
“We are proud to announce that our total assets have crossed RM100 billion, reporting at RM100.9 billion in 1H 2023 is a substantial year-on-year increase of 16.4 per cent from RM86.7 billion in 1H 2022,” it said.
President and group chief executive officer Datuk Wan Razly Abdullah said the bank’s larger asset base will be pivotal in ensuring consistent and sustainable earnings as NIM returns to normalcy in 2024 and the subsequent years.
“Come September 2023, our customers will experience a significant upgrade with the introduction of our market-leading Retail Mobile Banking App to realise our vision of being a front-runner in digital innovations in our industry,” it said.
