KUALA LUMPUR: Affin Holdings Bhd
saw its earnings surge 284% to RM115.56mil in the first quarter ended March 31, 2016, boosted by lower allowance for loan impairment and higher loan recoveries.
The banking group announced on Tuesday the earnings performance was much improved from the RM30.08mil a year ago also due to higher share of profit in associate as well as the increase in both net interest income and Islamic banking income.
Its profit before tax and zakat (PBT) was up 213% to RM152.9mil compared with RM48.8mil a year ago. Revenue dipped 0.4% to RM426.92mil from RM428.67mil. Its earnings per share were 5.95 sen versus 1.55 sen.
During the Q1, 2016, there was a write-back of RM1.57mil compared with impairment losses on loans, advances and financing totaling RM124.12mil a year ago.
“The group’s annualised after tax return on equity (ROE) and after tax return on assets (ROA) for the quarter under review were 5.5% and 0.7% respectively,” it said.
Affin Holdings said the group’s key contributor, Affin Bank Bhd group posted profit before tax (PBT) of RM123.1mil, up 428% from RM23.3mil a year ago.
“This achievement was as a result of lower allowance for loan impairment, higher loan recoveries as well as higher Islamic banking income and net interest income,” it said.
Affin Islamic Bank Bhd recorded an improved PBT of RM 25.5mil versus RM23.5mil a year ago.
Affin Hwang Investment Bank Bhd group reported a PBT of RM24.5mil, down from RM33.5mil a year ago when it benefited from higher realised investment gains. The PBT was before the amortisation of identifiable intangible assets of RM3.5mil (1Q2015: RM9.5mil arising from fair value adjustment on held-to-maturity securities) as a result of the acquisition of HwangDBS Investment Bank Bhd.
Affin Hwang Investment Bank Bhd (Affin Hwang IB) group reported a PBT of RM24.5mil for the first quarter of 2016 – down from RM33.5mil a year ago when it benefited from higher realised investment gains.
The jointly controlled entity, AXA AFFIN Life Insurance Bhd posted higher pre-tax loss of RM11.6mil versus the RM2.5miln pre-tax loss recorded in 2015, mainly attributable to higher reserves for future policyholders’ liabilities as a result of lower Malaysian Government Securities yield, increased overhead expenses as well as claims incurred.
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