Affin pre-tax profit down in Q1

Affin Holdings  recorded a 20.9 per cent lower pre-tax profit of RM140.3 million for the first quarter ending March 31 against RM177.3 million from last year.

In a statement, the group said the increase in net interest income and Islamic banking income was not sufficient to cushion the increase in both overhead expenses and allowance for loan impairment, as well as, the reduction in other operating income.

Revenue grew almost 20 per cent to RM621.7 million compared with RM520 million recorded, previously.

"It has been a commendable start to the new financial year following a strong performance from the group in 2010.

"The group is determined to stay focused to improve our profits from various business entities and we are optimistic of the prospects for the year," Chairman Tan Sri Mohd Zahidi Zainuddin said.

For the quarter under review, the group achieved a strong loans growth at an annualised rate of 11.1 per cent while deposits expanded by an annualised rate of 20.4 per cent compared with end-December 2010.

The group also said its loan-to-deposit ratio was stable at 80.3 per cent, as at March 31, 2011, compared with 82.1 per cent, as at Dec 31, 2010.

The full story is available at Bernama.com.

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Tags: pre-tax profit, net interest income, Islamic banking