The group said the FY2022 net profit attributable to shareholders was RM36.5 million, which is 41% lower than the RM62.0 million announced earlier in the unaudited quarterly report.

The variance was due to the reduction in the share of results of an associate by RM25.5 million to RM256.4 million, Boustead said in a filing with Bursa Malaysia today.

“The change in the share of results of an associate was due to an additional provision on expected credit losses (ECL) made by Affin Bank Bhd, our 20.93% associate,” the group said.

Following its announcement of the Q4 FY2022 results, Affin made an additional ECL provision of RM173.0 million, Boustead explained.

Accordingly, Affin’s audited net profit now stood at RM1.179 billion, as reflected in their audited financial statements, which were announced on April 26, 2023, it said.

“The additional provision of ECL was done in accordance with the MFRS 110 – (which pertain to) events after the reporting period – and in consultation with Bank Negara Malaysia and their external auditor.

“For the avoidance of doubt, this additional provision had not been accounted for in Affin’s unaudited Q4 2022 results, and hence were not incorporated in our Q4 result announced on Feb 28, 2023,” Boustead said.

As a result of this additional provision, Boustead said, it had to account for its 20.93% share of after-tax impact in the audited account for FY2022 amounting to RM25.5 million.