KUALA LUMPUR: Affin Bank Bhd’s net profit surged 112.85 per cent to RM156.03 million in the second quarter ended June 30, 2019, from the RM73.31 million in the same period last year.
Revenue improved to RM497.93 million from RM494.18 million previously, the financial services conglomerate said in a filing with Bursa Malaysia today.
The improved performance in bottom line was mainly due to write-back of credit impairment losses of RM36.1 million as compared to allowance of RM76.2 million on June 30, 2018, and higher net gain on financial instruments of RM88.3 million.
These were partially offset by lower net interest income, other income, share of result of an associate and net fee and commission income of RM50.9 million, RM13.6 million, RM18.7 million and RM22.9 million respectively.
In a separate statement, group chief executive officer Kamarul Ariffin Mohd Jamil said the strong results were a testament to the success of the bank’s on-going corporate strategy and the achievements to transform the bank to further diversify its products and digitalisation of its business.
“Our current earnings are reflective of our resilience to remain focused on our key business areas, with the emphasis on organic growth.
“Besides being the one-stop financial services provider, and given the heightened competition in the banking and financial sector, we are all out looking for business opportunities,” he said.
He said the group was upgrading its capabilities and operating efficiencies specifically on digital front in enriching customer experience.
“In the second half of 2019, customers can look forward to more digital offerings with the new AFFIN Pay@E-Wallet and Visa Signature credit card which was launched in July 2019.
“The new retail Internet banking and mobile Internet banking are also in the pipeline. On the corporate banking side, the new transaction banking system will enable the bank to onboard new customers and enhance existing customers’ experience,” he added.
Meanwhile, on the small and medium enterprises (SME) front, the bank said the new SME colony was also in progress and it was working with renowned fintech partners to realise the initiative.
“Affin Bank ‘s strategic focus for 2019 will remain on both retail and business banking segments, especially in the SME segment,” it added.