This is despite Q1 revenue falling 6.53% to RM494.29 million from RM528.82 million in the same period last year.

The bank attributed the stronger earnings to its Islamic banking business which grew 3.5% in the quarter.

No dividend was declared for the quarter.

“Affin group continues to see its business growing at 14.3%, as reflected in its loans and financing portfolios reaching RM61.2 billion (Q1 FY2023) from RM53.5 billion (Q1 FY2022),” it said in a statement released today.

Total assets grew 12.7% year-on-year (y-o-y) to RM94.1 billion in Q1 FY2023 from RM83.5 billion a year ago.

The growth in loans and financing was mainly due to the 22.4% improvement in the community banking segment of which housing loans grew 23.3%, whilst auto finance loans increased 16.8%.

The bank’s net interest income came in at RM233.6 million, an increase of 2% y-o-y compared to RM229 million in Q1 FY2022, mainly due to a higher asset base.

Meanwhile, non-interest income for the quarter fell 29.4% to RM106.6 million from RM150.9 million in the same period last year.

As at March 31, 2023, the gross impaired loans (GIL) ratio for the group fell to 1.96% from 2.43% in Q1 FY2022 due to stronger recovery efforts.

On deposits, CASA (current account/savings account) balances stood at RM14.7 billion for the first quarter, contributing to a CASA ratio of 22.33%. The group’s customer deposits increased by 5.8% y-o-y to RM65.9 billion as at Mar 31, 2023.

“Local banking systems are expected to remain resilient, supported by strong governance and prudent risk management practices, despite recent banking stress in some advanced economies” CEO Wan Razly Abdullah said in a statement.

Affin’s share price closed 0.5% or 1 sen lower to RM2, giving Malaysia’s second-smallest commercial bank a valuation of RM4.55 billion.