News Column

Affin profit rises 3.3pc to RM650m

February 26, 2014

KUALA LUMPUR: AFFIN Holdings Bhd's net profit rose 3.3 per cent to RM650.02 million in the year ended December 31 2013, from RM628.94 million previously.

This was due to higher interest income and Islamic banking income and lower allowance for loan impairment in line with the improved asset quality, Affin said yesterday.

However, this was partially offset by the reduction in other operating income, lower share of profit in its associate company and higher overhead expenses.

Group revenue rose at a slower pace of 1.9 per cent to RM3.03 billion from RM2.97 billion previously.

"We have accomplished all our KPI (key performance indicators) targets for 2013 despite the challenging economic environment and the stiff competition that we faced.

"We look forward to continued improvement in our earnings in 2014, in tandem with our ongoing efforts and initiatives to grow the business of the group," Affin's group chairman, Tan Sri Mohd Zahidi Zainuddin, said in a statement yesterday.

Affin registered loan growth of 7.9 per cent during the financial year under review, primarily in the segments of business term loans/financing, hire purchase, mortgages and revolving credit.

Its customer deposits expanded by a strong rate of 10.3 per cent while gross loan/deposits from customers ratio stood at 79.1 per cent as at December 31 last year compared with 81.6 per cent as at September 30 2013.

The group registered healthy growth in its consumer segment, hence improving its ratio of consumer to corporate deposits from 24.3 per cent as at September 30 last year to 28.8 per cent as at December 31.

In the fourth quarter alone, Affin group's earnings increased by four per cent to RM166.91 million from RM160.38 million.

Its revenue grew 2.5 per cent to RM775.04 million from RM756.19 million, while earnings per share were 11.17 sen compared with 10.73 sen.

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Source: Business Times (Malaysia)

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