KUALA LUMPUR: Seeing investment banking segment has benefited from the overall improved market sentiments in the first half of 2017, Affin Holdings Bhd will push forward to drive efficiency savings in its business operations via collaborative efforts to better serve its enlarged clientele.
The financial services provider is also bullish on the group’s diversified business to benefit from the overall improved market sentiments on the back of sustainable domestic banking system and healthy credit as well as liquidity conditions.
In addition, the group remains positive on the country’s macroeconomic fundamentals and would continue to build resilience across its business.
"While Malaysia’s macroeconomic fundamentals remain sound, we remain cautiously optimistic of our future prospects and will continue to build product and service capabilities across its businesses to better serve its clientele," the company said in a statement.
The group’s banking division’s earnings has seen an improving trend and is expected to continue to improve with the new and sustainable business model initiatives as well as opportunities for profitable growth undertaken through the Affinity Transformation Programme.
Affin’s net profit in the second quarter (Q2) ended June 30, 2017 increased 8.01 per cent to RM148.41 million from RM137.40 million in the same period a year ago, due to the increase in other operating income, Islamic banking income and net interest income.
Exchange filing on Wednesday showed the bank’s revenue surged 23.40 per cent to RM588.29 million from RM476.72 million in the same period previously.
Affin’s earnings per share (EPS) for the six months under review increased to 13.82 sen from 13.02 sen for the same period in the previous year.
Moving forward, the bank said it will be focusing on its strategic objectives to strengthen its fee-based income from digital banking, unit trust and credit card to mitigate the impact of margin compression on net interest income.
“We also targets a loan growth between 8 per cent and 10 per cent for 2017 and our Islamic division is expected to grow by 15 per cent, supported by the implementation of priority Islamic approach and Affinity Transformation Programme initiatives,” it said.
The bank noted that it would remain optimistic for the year 2017, and continue to support its strategic vision in providing excellent banking services to meet its customer needs and expectations.
“The major focus will also be on accelerating the digitisation of the business to enable the bank to effectively compete in the rapidly evolving financial services landscape in addition to the initiatives to enhance its transactional banking capabilities as well as to improve its non-financing income stream,” it said.