Affin Bank Bhd to spearhead growth of Affinbank Group
Kuala Lumpur: Affin Bank Bhd (AffinBank) will be spearheading the growth of the Affinbank Group, following the recent corporate exercise which saw the bank becoming the new group holding company.
In a statement on Tuesday, AffinBank said its net income rose by 17.8 per cent to RM1.56 billion for the financial year ended Dec 31, 2017 (FY17) from RM1.32 billion in FY16, but its profit before zakat and taxation decreased by 8.1 per cent to RM554.1 million from RM602.8 million previously.
"The bank continues to rebalance its book via booking in loans/financing with higher yields and exiting those with thin margin.
"Additionally, the group will continue to grow its fee income through its investment banking, asset management and stock broking business," it said.
The completion of the group's restructuring exercise on Oct 16, 2017 and Affin Holding's subsequent transfer of its listing status to AffinBank on Feb 2, 2018, saw the bank becoming the new group holding company to Affin Islamic Bank Bhd, Affin Hwang Investment Bank Bhd, AFFIN Moneybrokers Sdn Bhd and AXA AFFIN Life Insurance Bhd while AXA AFFIN General Insurance Bhd became its associate company.
Group Chief Executive Officer Kamarul Ariffin Mohd Jamil said as the economy and industry continued to evolve, it was crucial for the bank to have the right strategy - focusing on efficiency, productivity and adaptability to thrive and differentiate itself.
"Our new corporate structure will enhance the group synergy and drive us into the next phase of growth," he said.
Meanwhile, the group said it was in the second phase of its AFFINITY Programme, which aimed to improve earnings and operating efficiencies.
The initiative focused on building digital banking capabilities with enhanced analytics for better customer engagement, expanding targeted growth segments, enhancing productivity through automation and emphasising customer experience.
"We have made significant progress in terms of loan stock, net interest/ profit margin, capital, fee and interest/ profit income, turnaround time and customer experience initiatives," it said.