Affin Bank's 1Q earnings rise on higher net interest income
Affin Bank president and group CEO Datuk Wan Razly Abdullah
KUALA LUMPUR: Affin Bank Bhd achieved a bottomline of RM124.09mil in the first quarter of 2025 (1QFY25), a 12.59% increase from RM110.21mil in the year-ago quarter on higher net interest income, improved funding mix and stronger contribution from associates.
The banking group reported revenue of RM543.93mil, up from RM504.54mil in the previous comparative period, while earnings per share rose to 5.17 sen from 4.7 sen previously.
During the quarter, Affin Bank said net interest income gained 6.4% year-on-year (y-o-y) to RM206mil, which offset a 1.7% decrease in non-interest income to RM140.1mil.
The group's Islamic banking division, Affin Islamic Bank Bhd, reported a lower pre-tax profit of RM87.1mil, down from RM98.6mil in the year-ago quarter, due mainly to higher operating expense and higher allowance for impairment losses.
On its balance sheet, Affin Bank said gross loans and financing in 1QFY25 grew 7.1% y-o-y to RM72.9bil while customer deposits rose 5.2% to RM75.5bil.
The bank's current account and savings account (Casa) rose 36.2% y-o-y to RM24.3bil while the Casa ratio improved to 32.2% as at March 31, 2025, from 24.9% on March 31, 2024.
Affin Bank reported a slightly lower operating expense of RM379.1mil in 1QFY25, as compared to RM378.9mil in 1QFY24, while cost-to-income ratio decreased from 75.1% to 69.7%.
According to president and group CEO Datuk Wan Razly Abdullah, the group had exercised prudent cost and credit discipline amid a persistently tight monetary environment and ongoing global macroeconomic headwinds.
"While we remain cautious on the
near-term outlook due to external volatility, we remain confident in our ability to navigate the landscape, supported by healthy asset quality, a well-diversified balance sheet, and disciplined execution," he said in a statement announcing the results.
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