• Pre-Zakat & Tax profit recorded is RM554.1 million
• Net income improved by 17.8% to RM1,560.5 million
• Other Operating Income up by 69.0% to RM370.9 million 
• Deposits from Customer rose 6.9% to RM50.9 billion
• Net loans, Advances & Financing increased by 7.0% to RM45.7 billion

KUALA LUMPUR – Affin Bank Berhad ("AFFINBANK" or "the Bank") is leading the growth of AFFINBANK Group after its recent corporate exercise which entailed the transfer of the listing status of AFFIN Holdings Berhad, along with its entire equity interests in its subsidiaries, joint venture and associate.

The restructuring exercise which was completed on 16 October 2017 and subsequently led to the transfer of listing status on 2 February 2018 saw AFFINBANK officially became the new bank holding company to Affin Islamic Bank Berhad ("AFFIN ISLAMIC"), Affin Hwang Investment Bank Berhad, AFFIN Moneybrokers Sdn Bhd, AXA AFFIN Life Insurance Berhad, while AXA AFFIN General Insurance Berhad is an associate company to AFFINBANK.

AFFINBANK's net income rose 17.8% to RM1,560.5 million for financial year ended 31 December 2017 from RM1,324.4 million in previous year. The Bank continues to rebalance its book via booking in loans/financing with higher yields and at the same time exiting those with thin margin. Earnings per share (EPS) for 2017 was 24.0 sen as compared to 27.5 sen the year before.

AFFINBANK recorded Profit Before Zakat and taxation ("PBZT") of RM554.1 million for financial year ended 31 December 2017 compared to RM602.8 million in the previous year. The 8.1% decrease was mainly due to higher overhead expenses and higher impairment allowance on loan/financing.

As part of organizational renewal and rejuvenation strategy, the Bank had during the year carried out a voluntary separation scheme whereby a total 327 staff were released. The total cost incurred was approximately RM46.5million.

The Management will continue to identify and recruit new talents to fill some of the critical areas. This building of workforce capacity is regarded as a crucial and necessary investment to ensure sustainability and competitiveness of the Group.

Several initiatives under its consumer banking business during the year included the launch of AFFINBANK and AFFIN ISLAMIC Visa Debit Card, a multifunctional card that combine the features and benefits of an ATM and a Debit card, and AFFIN Rewards, a loyalty programme that rewards customers with points.

The Bank received many international and domestic awards, including the prestigious Asian Banker's Liquidity Risk Technology Implementation of the Year and JomPAY National Biller Acquisition (Mid-sized Acquirers) Award.

"As the dynamics of the economy and industry continue to evolve, it is crucial that we put in place the right strategies focused on efficiency, productivity and adaptability to thrive and differentiate ourselves. Our new corporate structure will enhance the Group synergy and drive us into the next phase of growth," said En. Kamarul Ariffin Mohd Jamil, Group Chief Executive Officer, AFFINBANK.

AFFINBANK and AFFIN ISLAMIC are now in the second phase of the AFFINITY Programme ("AFFINITY"), which started in 2016. AFFINITY was created to improve earnings and operating efficiencies. The focus is on building digital banking capabilities with enhanced analytics for better customer engagement, expanding targeted growth segments, enhancing productivity through automation and emphasizing customer experience. To-date, significant progress has been made namely in terms of loan stock, net interest/ profit margin, capital, fee and interest/ profit income, turnaround time and customer experience initiatives.

Moving forward, AFFINBANK is striving for a loan/ financing portfolio mix of 50:50 between Consumer and Business segments.

Affin Islamic Bank Berhad ("AFFIN ISLAMIC")

With the launch of AFFIN ISLAMIC's Priority Islamic Policy ("PIP") in 2016, AFFIN ISLAMIC deposit portfolio continued to grow by 35.2%, along with its total gross financing standing at RM15.5 billion, despite intense competition for deposits during the year.

On the back of 29.0% financing and 35.2% deposit growth respectively, AFFIN ISLAMIC ended the year with total assets of RM20.0 billion, an expansion by RM4.7 billion from RM15.3 billion the previous financial year.

Though total income grew by 23.1% to record RM339.1 million compared to RM275.4 million in 2016, AFFIN ISLAMIC registered a 17.3% drop in profit before zakat and taxation ("PBZT") to RM121.0 million in 2017.

AFFIN ISLAMIC's priorities in 2018 will continue to be in line with the AFFINITY initiatives that promote profitable growth and operating efficiencies. The Bank is aiming to enhance its Islamic financing portfolio to 40.0% from Group portfolio by the year 2020 as per Bank Negara Malaysia's 10-year Financial Sector Blueprint.

AFFIN Hwang Capital ("AHC")

AHC recorded a higher net income of RM566.5 million for the current financial year ended 31 December 2017 compared to RM418.8 million in the previous financial year. This was achieved across all income lines with significant improvements in fee, brokerage and investment income.

Pre-tax profit increased 40.3% to RM183.8 million in 2017 compared to RM131.0 million achieved in previous year. Correspondingly, profit attributable to equity holders increased from RM85.7 million in 2016 to RM122.9 million in 2017. Earnings per share increased to 15.75 sen against 10.99 sen the previous year, and return on equity was higher at 8.7% against 6.8% previously.

AHC remained well capitalised with shareholder's funds of RM1.6 billion (2016: RM1.5 billion). Total Capital Ratio remained healthy at 35.4% with Tier 1 Capital ratio of 35.1% as at 31 December 2017.

In 2017, AHC was awarded the prestigious Best Securities House in Malaysia by Asiamoney. It accorded international recognition for AHC's overall achievements in the Capital Markets space, and highlighted smart origination bankers, market beating coverage, reliable research and the ability to execute in difficult markets as some of its key strengths.

AXA AFFIN Life Insurance Berhad ("AXA AFFIN Life Insurance")

In 2017, AXA AFFIN Life Insurance key objective was selective growth via a multi-distribution, multi-partnership strategy to expand reach of customers amidst the changing insurance landscape.

In helping customers of the bank to manage risk and achieve their financial goals, AFFIN Maximiser, a high protection single premium plan with flexible investment options that also facilitates legacy planning was introduced. This had contributed to almost doubling of protection and health gross premiums, increase in new business margin and a solid 27.0% growth in gross premium for 2017.

For the year, AXA AFFIN Life Insurance achieved 93.0% growth in health and protection gross premium, 27.0% growth in gross premium and a 3 points improvement in new business margin. Management expenses were efficiently managed with only 4.0% growth. The pre-tax loss of RM26.1 million was higher in 2017 as compared to RM20.2 million in 2016, mainly due to yield curve movement.

AXA AFFIN General Insurance Berhad ("AXA AFFIN General insurance")

AXA AFFIN General Insurance closed FY2017 with a gross written premium ("GWP") of RM1.4 billion, registering profit before tax of RM144.3 million. In light of the de-tariff environment, the Company maintained selective and sustainable growth strategy with the key objective of enhancing customer-centricity, technical and data excellence as well as attaining operational efficiency.

The Company's transformation journey embarking on process automation, deployment of robotics and system enhancement continued to progress as planned. Key milestone of the journey includes introducing AXA FlexiDrive—the first telematics motor insurance product in the Malaysian market and successful roll out of SmartClaims (Phase 1).

The achievements in 2017 are a reflection of the dedication, support and commitment from the team, agents, distributors and business partners and, most importantly, trust placed by the Company's valued customers.

AFFIN Moneybrokers Sdn Bhd ("AFFIN Moneybrokers")

AFFIN Moneybrokers's net brokerage income for year 2017 was RM10.9 million which is higher by 1.5% as compared to year 2016. From the overall brokerage income of RM10.9 million, the Foreign Exchange desk contributed RM1.3 million or 13.7% higher than 2016. The Forward/Deposits desk contributed RM5.7 million or 9.7% higher than 2016. Derivatives and Islamic desk contributed RM2.9 million which was lower by 26.8% and RM1.0 million or 20.6% higher than previous year respectively. The net profit for the financial year was RM0.2 million, a decrease of RM0.9 million or 81.8% in comparison with year 2016 of RM1.1 million.

-END-

For media enquiries, kindly contact:-

Raja Emylia Raja Lope Ahmad   
Head, Corporate Communications
Affin Bank Berhad

Direct Line   : +6 03 2055 9428
Fax no.         : +6 03 2020 1144
Email        : head.corpcomm@affinbank.com.my        

Darlene Liew
Senior Executive, Corporate Communications
Affin Bank Berhad

Direct Line   : +6 03 2055 9034
Fax no.         : +6 03 2020 1144
Email        :  darleneliew@affinbank.com.my        

Mengenai AFFINBANK

The AFFINBANK Group is a financial services conglomerate. The AFFINBANK Group's activities focus on commercial, Islamic and investment banking services, money broking, asset management and underwriting of life and general insurance business.

AFFINBANK Group provides a suite of financial products and services that is catered to both retail and corporate customers. The target business segments are categorized under key business units such as Consumer Banking, SME & Commercial Business Banking, Corporate & Public Sector Business Banking and Treasury.

Our tagline of "Banking Without Barriers" signifies the removal of boundaries within the processes of the Bank as well as it's attitude in servicing its customers. The latter means reaching out to the customers, improving relationships with them, making each one of them feel privileged and enhancing a new approach to banking and changing the face of conventional banking.

AFFINBANK Group also provides Islamic banking products and services via its Islamic banking subsidiary Affin Islamic Bank Berhad (AFFIN ISLAMIC). AFFIN ISLAMIC commenced operations on 1st April 2006 as a full-fledged Islamic bank, and offers a complete range of Islamic Banking products and services for individuals and corporates which are in compliance with Shariah principles and laws.

As at 31 December 2017, AFFINBANK has a network of 107 branches in Malaysia. For more information, log on to www.affinbank.com.my or visit any of the AFFINBANK or AFFIN ISLAMIC branches nationwide.