Affin Bank's 2Q net profit rises to RM143.49mil
KUALA LUMPUR: With 2025 bearing all the components of a "VUCA year", Affin Bank Bhd president and group CEO Datuk Wan Zazly Abdullah attributes the group's first-half performance to the effectiveness of its growth strategy under the Axelerate 2028 (AX28) Plan.
"2025 continues to be a VUCA year — marked by volatility, uncertainty, complexity, and ambiguity. Success will depend on timing, execution, and strategic agility," he said in his review of the group's latest result.
In the second quarter ended June 30, 2025 (2QFY25), Affin posted a net profit of RM143.49mil, up from RM118.58mil in the year-ago quarter, which lifted earnings per share to 5.66 sen from 4.76 sen previously.
The group reported revenue of RM616.3mil during the quarter under review, against RM494.77mil in 2QFY24.
The latest results brought the group's net profit to RM267.57mil and revenue to RM1.16bil, an improvement over net profit of RM228.79mil and revenue of RM999.31mil in the year-ago period.
During the six-month period, Affin reported a net interest income (NII) of RM418.8mil, which was 8.5% higher compared to RM386mil in the previous corresponding period.
Non-interest income came in at RM324.8mil, a 14.3% increase over RM284.1mil in 1HFY24.
Meanwhile, Islamic banking pre-tax profit grew 24.6% to RM185.4mil, attributable to an increase in net financing income by RM80.6mil.
Operating expenses during the period were slightly higher at RM799.1mil as compared to RM746.7mil in the same quarter in 2024. However, the cost-to-income (CTI) ratio dropped 74.7% year-on-year to 68.9%.
"The group continues to drive cost-efficiency through targeted initiatives, such as optimising costs and enhancing workforce productivity across the organisation," said Affin on the improved CTI ratio.
On balance sheet, Affin's total loans, advances and financing were up 7.3% y-o-y to RM74.1bil, driven by increases in the enterprise banking and community banking segments.
During the six-month period, the group's customer deposits rose 9.8% to RM78.2bil, and its current account savings account (Casa) ratio improved to 28.2% as at June 30, 2025, from 25.9% in the same period in 2024.
According to Wan Razly, the launch of Affin's mobile banking app, AffinAlwaysX, in May 2025, was instrumental to the Casa growth.
"Guided by its AX28 Plan, the Group will continue
leveraging its digital capabilities, expanding its Islamic and enterprise banking franchises, and pursuing strategic opportunities, both domestically and across borders to strengthen market leadership and long-term profitability," he added.
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