KUALA LUMPUR, Nov 28 — Affin Bank Bhd’s net profit fell to RM72.40 million in the third quarter (Q3) ended September 30, 2019, from RM144.56 million a year earlier mainly due to lower net interest income, net fee and commission income as well as a write-back on credit impairment losses.
Revenue declined to RM474.26 million from RM496.25 million previously, the group said in a filing with Bursa Malaysia today.
The group’s net interest income eased by 14.6 per cent year-on-year (y-o-y) to RM180.63 million in Q3 2019, dragging net interest income for the nine-month financial period down by 12.8 per cent or RM81.87 million y-o-y to RM556.0 million.
The bank attributed the weaker year-to-date net interest income to the reduction in financial investments at fair value through other comprehensive income (FVOCI) of RM4.8 billion and in loans, advances and financing portfolio of RM2.4 billion.
On its prospects, Affin Bank said the banking industry was expected to continue characterised by moderate loan growth and soft capital markets.
“The prevailing market conditions, both globally and domestically will continue to drive volatility and uncertainty in the industry. Caution will prevail in the industry due to the soft economic outlook globally and selective asset growth will be the focus for the banks,” it said. — Bernama