Affin Bank posts lower 4Q profit, declares 7 sen dividend per share

KUALA LUMPUR (Feb 27): Affin Bank Bhd achieved net profit of RM131.7 million for the fourth financial quarter ended Dec 31 (4QFY19) down 13.3% from RM151.9 million a year ago.

The banking group’s quarterly revenue, however, was higher at RM487.04 million for 4QFY19 against RM453.55 million a year ago. Earnings per share for the bank dropped to 6.15 sen from 7.4 sen in the previous corresponding quarter.

Affin Bank declared a final dividend of seven sen per share in respect of the financial year ending Dec 31, 2019 (FY19).

For FY19, Affin Bank’s annual net profit was also lower at RM516 million compared with RM527.4 million the year before.

Earnings per share for FY19 was 24.59 sen versus 25.89 sen in FY18.

Revenue was marginally higher at RM1.93 billion compared with RM1.92 billion in FY18. Its net profit dropped a slight 2.2% to RM516 million from RM527.4 million a year ago.

The banking group recorded a profit before tax after zakat of RM677 million for FY19, an increase of RM2 million or 0.3% compared with RM675 million in the previous financial year, mainly driven by higher net realised gain on financial instruments and Islamic banking income of RM141.1 million and RM12.5 million respectively, offset by reduction in net interest income and other income totaling RM142.4 million.

Affin Bank also registered a lower allowance for impairment losses by RM15.4 million for the financial year under review.

The banking group’s net assets per share grew 5.4% to RM4.70 as at Dec 31 2019, compared with RM4.46 as at end-2018 while its shareholders equity rose to RM9.3 billion from RM8.7 billion a year ago.

“We are encouraged by the group’s overall performance for the financial year ended 31 December 2019, despite the challenging environment.

“Our growth is driven by our AFFINITY Programme which has made significant progress to date. Much of our focus this year has been on investing in our people and technology, including our digitalisation plans as well, which we consider significant milestones in our quest to get closer to our customers and enhance the customer experience,” said Affin Bank’s chairman Datuk Agil Natt.