AFFIN Group has announced its second quarter and first half earnings with the group recording a Profit Before Tax after zakat of RM345.7 million for 1H which is a decrease of 15.4% as compared to the same period in 2022 of RM408.5 million, attributing mainly to Net Interest Margin (NIM) compression.
For the quarter, its revenue moderated from RM579 million to RM504 million while profit for the period dropped to RM113 million compared to RM157 million the group achieved in the same quarter in the preceding year.
Business segment-wise, the loan and financing portfolios have risen to RM62.5 billion in the first half of 2023 – marking an impressive increase of 12.7% from RM55.4 billion in the same period the previous year. As of 30 June 2023, the Gross Impaired Loan (GIL) ratio for the Group recorded a significant improvement of 1.78% as compared to 2.28% as of 30 June 2022, the lowest in the last 5 years.
The group’s total assets.has crossed RM100 billion. Reporting at RM100.9 billion in 1H2023, is a substantial year-on-year increase of 16.4% from RM86.7 billion in 1H2022.
President & Group Chief Executive Officer of Affin Bank Berhad, Datuk Wan Razly Abdullah said the expansion of our asset base is not just a mark of our present success; it is a promise of our future potential. As NIM returns to normalcy in 2024 and the subsequent years, our larger asset base will be pivotal in ensuring consistent and sustainable earnings.
Affin Islamic Bank Berhad’s PBT recorded a decrease of 10.2% to RM132.8 million due to compression in Net Profit Margin. Non-interest income for the period under review was RM263.6 million, a decrease of RM43.0 million or 14.0% from RM306.6 million registered in the previous corresponding period. The decrease was due to lower net fee and commission income.
As of 30 June 2023, the Group’s total loans, advances and financing grew by 12.7% YoY to RM62.5 billion contributed mainly by the 20.6% growth in the Community Banking segment. Housing Loans grew by 21.6%, whilst Auto Finance loans rose by 14.8%. On the deposits, CASA (Current Account/Savings Account) recorded at RM16.6 billion for the period ended 30 June 2023 and CASA ratio stood at 23.2%.
