Affin posts stellar PBT results in 1Q16

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KUALA LUMPUR:  Affin Holdings Bhd’s profit before tax and zakat (PBT) for the first quarter ended March 31, 2016 (1Q16) surged by more than threefold to RM152.73 million from RM48.55 million recorded in the same period last year.

Revenue, however, slipped to RM426.92 million form RM428.67 million previously.

“The improved performance was mainly due to lower allowance for loan impairment of RM125.7 million, higher share of profits in associate of RM6.7 million as well as the increase in net interest income and Islamic banking income totalling RM9.9 million.

“These were partially offset by the reduction in other operating income of RM11.7 million, higher finance cost and higher overhead expenses of RM3.6 million and RM2.1 million respectively,” the investment holding company said in a filing to Bursa Malaysia yesterday.

In a separate statement, Affin Holdings said it delivered an annualised loan growth rate of three per cent during 1Q16, mainly in the segments of syndicated term loans, business term loans, housing loans and hire purchase loans.

The ratio of loans to deposits from customers was stable at 88.4 per cent as at end-March.

Consumer deposits to total deposits ratio was 26.7 per cent for the quarter under review.

Affin Holdings also said the key contributor to the stellar results was Affin Bank Bhd Group, which registered a PBT of RM123.1 million for 1Q16, compared to RM23.3 million in the same quarter in 2015.

“This achievement was as a result of lower allowance for loan impairment, higher loan recoveries as well as higher Islamic banking income and net interest income,” it said.

However, Affin Hwang Investment Bank Bhd’s PBT declined to RM24.5 million in 1Q16 from RM33.5 million previously.

Going forward, Affin Holdings said the Group would explore potential business prospects in Malaysia’s armed forces fund Lembaga Tabung Angkatan Tentera (LTAT) or Boustead Group of Companies.

“(This is) in order to capitalise on the synergies that we will be able to achieve through these collaborations,” Affin Holdings added. — Bernama