The bank's revenue fell to RM486.19mil from RM566.71mil in the comparative quarter.
KUALA LUMPUR: Affin Bank Bhd says challenging conditions in 2023 caused the overall industry to face margin compression, which impacted net interest income.
“Net interest margin (NIM) compression has continued to impact revenue, but the group has shown resilience by building stronger and deeper foundations for current accounts and savings accounts (Casa), loan growth, gross impaired loans, loan loss coverage, and customer acquisitions that will catapult us into the future,” said president and group chief executive office Datuk Wan Razly Abdullah in a statement.
In the fourth quarter ended Dec 31, 2023, Affin Bank registered a net profit of RM39.54mil, more than double the net profit of RM16.56mil in the year-ago quarter, mainly owing to lower allowances for impairment losses and higher interest income.
The group’s earnings per share rose to 1.62 sen from 0.4 sen previously.
Revenue, meanwhile, dropped to RM486.19mil from RM566.71mil in the comparative quarter.
The bank’s board of directors proposed a final dividend of 5.76 sen per share, representing a total dividend payout of about RM135.3mil or 33.6% of the group’s net profit for FY23.
Over the full financial year, the group’s net profit was RM402.19mil compared with RM1.18bil in FY22 while revenue was RM1.99bil compared with RM3.3bil in the previous year.
According to Affin, non-interest income in FY23 was RM607.3mil, a 76.6% increase over the previous corresponding period, excluding the proceeds from the disposal of the asset management business.
Net interest income, however, was RM782.9mil, or 23.5% lower year-on-year (y-o-y) due to net interest margin compression.
The group said total loans, advances and financing grew 12.3% y-o-y to RM66.66bil contributed mainly by the 17.1% growth in the community-banking segment.
On deposits, the group’s Casa was RM18.9bil while the Casa ratio stood at 26.7%.
The group said customer deposits increased 9% y-o-y to RM70.8bil as of Dec 31, 2023.
