Business

Saturday August 18, 2012

Affin Q2 net profit up on rise in income


PETALING JAYA: Affin Holdings Bhd saw its net profit for the second quarter ended June 30, 2012, grow 4.9% to RM140.83mil from the previous corresponding period after reporting an increase in income.

The second-smallest banking group in the country said its revenue for the period under review grew 13.4% year-on-year to RM735.67mil. Earnings per share (EPS) were higher at 9.42 sen for the quarter, compared with 8.98 sen a year ago.

No dividend was declared for the period in review.

Affin chairman Tan Sri Mohd Zahidi Zainuddin, who was obviously pleased with the group’s results, said in a statement: “We hope to continue delivering strong results and maintaining our earnings momentum in the second half of 2012.”

For the first half, the group’s net profit stood at RM306.85mil, which was a significant 27.7% higher than the RM240.25mil it achieved for the previous corresponding period.

The company pointed out in a statement that its first-half net profit improvement was achieved on the back of an improved turnover of RM1.46bil, compared with the revenue of RM1.27bil that it achieved a year ago.

It claimed that the improvement in the overall asset quality of the group had also resulted in lower allowance for impairment for the first half.

Affin’s EPS for the first half stood at 20.53 sen, which represented an increase of 4.45 sen from 16.08 sen in the first half of FY11. Its net assets per share were RM3.94 as at the end of June 2012, compared with RM3.74 as at Dec 31, 2011.

Based on its performance year to date, Affin said it would be on track to achieve its full-year key performance indicators as announced earlier for FY12.

Affin’s return on equity up to the first half stood at 5.3%, compared with its target of 9.6%. Its return on assets, on the other hand, was at 0.6%, compared with its full-year target of 1%.

Affin’s gross impaired loan ratio for the first half was 2.5%, which was near its annual target of 2.7%, while its first-half EPS at 20.53 sen made its annual target of 38.3 sen seemed achievable.

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