Affin confident of prospects for 2013

Affin Holdings Bhd suffered a 9.1 per cent decline in its first quarter net profit at RM150.83 million, versus RM166.03 million same quarter a year ago.

The is mainly due to the lower share of results of its associate AXA Affin General Insurance Bhd at RM500,000 this quarter, against RM19.6 million same quarter last year.

In 2012, there was a one-off write back of RM53.2mil by AAGIB due to a change in the methodology of unearned premium reserve (UPR) computation, the lender said.

"Our results for this quarter have given us a commendable start to the new financial year. We look forward to sustain our growth momentum as we continue into 2013," said chairman Tan Sri Mohd Zahidi Zainuddin.

Mohd Zahidi added that the group is positive on its outlook for the year ahead, backed by the country's continous economic growth.

"We are cautiously optimistic of our prospects for the year ahead. Gross domestic product (GDP) growth for Malaysia which has been projected to be between 5 per cent and 6 per cent for 2013 should bode well for the Affin Group as we look forward to capitalise on burgeoning domestic demand," said Mohd Zahidi.

Although the company registered lower pre-tax profit and net earnings, it did manage to grow its revenue, net interest income and islamic banking income, among others.

Revenue for the quarter rose 2.2 per cent at RM732.8 million, against RM717.3 million. Net interest income gained 2.7 per cent at RM221.5 million while Islamic banking income increased by 7.6 per cent to RM55 million.

During the quarter, its loan to deposit ration rose slightly to 81.3 per cent, from 80.9 per cent as at December 31, 2012.