KUALA LUMPUR, Affin Bank Bhd posted a firmer net profit of RM117.95 million for the second quarter (Q2) ended June 30, 2021 from RM67.4 million recorded in the same period last year.
In a filing with Bursa Malaysia today, it said revenue also improved to RM578.90 million versus RM462.46 million previously.
For the six-month period ended June 30, 2021, the group recorded a higher profit before tax after zakat (PBT) of RM282.2 million compared with RM267.9 million recorded in the same period of the previous year.
The higher PBT of 5.3 per cent year-on-year (y-o-y) was attributed largely to 26.4 per cent higher net interest income and 7.8 per cent higher income from Islamic banking business.
However six-month net profit was RM186.9 million compared to RM190.97 million for the same period previously.
“The result is expected given the tough operating environments under the Movement Control Order (MCO) conditions.
“We continue to invest in the digitalisation of our business to build a stronger and sustainable business for the long term,” it said.
Net interest income (NII) increased by RM87.4 million or 26.4 per cent to RM418.1 million compared to the same period of the previous year of RM330.7 million attributed to lower interest expense as the bank continued to focus on current account savings account (CASA) which recorded a growth of 24.1 per cent year-on-year.
This core earnings have replaced volatile treasury one-off earnings which has strengthened the bank’s earnings capacity.
NII has improved due to significant reduction in cost of funds from 3.23 per cent in the first half (H1) 2020 to 2.05 per cent in H1 2021.
Operating expenses showed an increase of RM22.2 million or 3.4 per cent to RM681.0 million compared to RM658.7 million a year ago.
The higher operating expenses were contributed by higher personnel expenses of RM37.2 million, offset by lower establishment expenses and general and administration expenses of RM8.9 million and RM7.2 million respectively.
Allowances for impairment losses showed a slight increase of RM3.4 million to RM175.3 million y-o-y.
On prospects for the financial year 2021, the bank said it remained committed to help customers who have been impacted by the COVID-19 pandemic and will continue to offer Financial Assistance and Instalment Relief (FAIR) programme to all customers who require such assistance.
President and group chief executive officer Datuk Wan Razly Abdullah Wan Ali said the bank also launched its New Repayment Assistance (NRA) 2.0 programme on July 7, 2021 which aims to provide financial relief to all customers during this difficult time.
Besides, it would continue to build sustainable profit through the implementation of the Affinity in Motion (AIM 22) Transformation Programme, its metamorphosis plan anchored on five key elements of value creation; technology, services, innovation, rewards and people and culture.
Source: BERNAMA News Agency