Highlight Affin’s 2Q net profit falls 30% y-o-y to RM112 million

by **Cals** Sat 16 Aug 2014, 00:37

Highlight Affin’s 2Q net profit falls 30% y-o-y to RM112 million
Business & Markets 2014
Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com
Friday, 15 August 2014 18:48

KUALA LUMPUR (Aug 15): Affin Holdings Bhd’s net profit for the second quarter ended June 30 fell 30% to RM111.99 million, from RM159.31 million a year ago, despite posting a higher revenue.

Revenue rose 19% to RM904.46 million from RM757.12 million.

For the six months period to June 30, net profit declined to RM254.72 million from RM310.14 million, while revenue rose to RM1.67 billion from RM1.49 billion.

In a filing with Bursa Malaysia, the group said its profit before tax and zakat (PBT) fell to RM162.0 million for the second quarter, from RM218.8 million a year before.

Affin said the lower PBT was mainly due to higher allowance for loan impairment of RM41.5 million, lower loan recovery of RM11.7 million as well as higher overhead expenses of RM19.0 million.

The group said its commercial banking, investment banking and other business segments had reported lower PBT for the quarter, while its insurance segment had widened its pre-tax loss.

Going forward, Affin said it will be focusing on optimising its balance sheet through the deployment of its enlarged capital base while also managing its margins and operating costs.

“The proposed rights issue to raise gross proceeds to partly finance the acquisition of the Hwang-DBS businesses was completed on July 10, 2014, with the listing of and quotation for 448.4 million rights shares.

“The merger integration process between AIBB and Hwang IB will soon conclude with the unveiling of an exciting new brand to reflect the joint heritage of both AIBB and Hwang IB as it works towards its vision of becoming a leading independent bank-backed investment banking group in Malaysia,” Affin said.