Business

Published: Monday November 23, 2009 MYT 12:48:00 PM

Asian Finance Bank makes maiden profit


KUALA LUMPUR: Asian Finance Bank Bhd records its maiden profit before tax of RM4.41 million for the nine months ended September 30, 2009 compared to a loss of RM10.92 million for the same period last year.

Asian Finance Bank Chief Executive Officer Datuk Mohamed Azahari Kamil said the significant turnaround in performance was premised on a year-on-year growth of 232 per cent in its financing assets from RM185.1 million as at Sept 30, 2008 to RM614.5 million as at Sept 30, 2009.

Backed by a strong Risk Weighted Capital Ratio of 42.49 per cent as at Sept 30, 2009, Asian Finance Bank, according to Azahari, is poised to chart further growth in its funded assets before the financial year-end as well as in the year 2010 as it already achieved a total of RM1 billion in approved and accepted applications todate.

Total assets as at Sept 2009 amounted to RM1.4 billion out of which RM614 million accounts for funded assets.

For the first three quarters in the financial year, its profit before tax performance has been trending upwards, from a loss of RM2.57 million in the first quarter to a profit of RM2.57 million in the second quarter and subsequently a RM4.41 million profit in the third quarter.

"This was supported by significant increase in its income from financing assets which grew at the rate around 50 per cent quarter-on-quarter over the past three quarters, i.e. RM4.06 million for Q1, RM6.29 million for Q2 and RM9.41 million for Q3.

"For the financial year ending Dec 30, 2009, we are looking at a profit of RM8 million to RM10 million," he told a media briefing on Asian Finance Bank financial results.

In terms of asset quality, Asian Finance Bank, he noted, has been able to maintain a zero per cent net non-performing financing ratio as at Sept 30, 2009 as it adopts an early tracking approach on all its financing customers with quality asset funding.

Asian Finance Bank's direction, he emphasised, will focus further on its asset growth, focusing on government-linked companies' projects in the Middle East and to enhance its fee based income through its investment banking and asset management division.

"As a regional outfit based in Kuala Lumpur, the expansion plans will include opening of new branches and exploring expansion in Indonesia, Brunei and South Korea," he said.

Cross-border deals currently constitute 22 per cent of Asian Finance Bank's financing portfolio while 45 per cent of its investment portfolio represents exposure to the Middle East market.

"We will also be having a signing ceremony this week in Singapore on our first acquisition of a chemical tanker under the Safeena Islamic Fund," he said.

Asian Finance Bank and Amanah Raya Investment Bank Ltd will be participating in the equity of the Safeena Islamic Fund for the asset injection.

Asian Finance Bank Bhd, a full-fledged Islamic Bank, was incorporated on Nov 28, 2005 and is backed by a consortium of shareholders from leading Middle East financial institutions (owned 70 per cent by Qatar Islamic Bank, a Global Islamic Bank, 20 per cent by RUSD Investment Bank, Saudi Arabia, and 10 per cent by Financial Assets Bahrain). - Bernama

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