Latest news with #AFFIN
BusinessToday
5 days ago
- Business
- BusinessToday
Affin Group Posts 21% Higher Profit For Q2 To RM148 Million
AFFIN Group recorded a Profit After Tax after of RM267 million for the six-month period ended 30 June 2025, marking a robust year-on-year (YoY) increase of RM64.9 million or 22.1% from RM293.1 million in 1H2024. The growth was driven by a RM160.9 million rise in net income, partially offset by a RM80.2 million increase in impairment allowances. For the second quarter, the group recorded a PAT of RM143 million, up from RM118 million achieved in the previous year's period. Revenue also improved to RM616 million compared to RM494 million. The Group's gross loans and financing portfolio expanded by 7.3% YoY to RM74.1 billion, up from RM69.0 billion a year earlier. Customer deposits rose by 9.8% to RM78.2 billion, while the Current Account and Savings Account (CASA) ratio improved to 28.2% as at 30 June 2025, compared to 25.9% in the same period last year—reflecting AFFIN's continued success in building a low-cost deposit base. Datuk Wan Razly Abdullah, President & Group Chief Executive Officer of AFFIN Group, commented, 'AFFIN's strong first-half performance underscores the effectiveness of our focused growth strategy under the Axelerate 2028 (AX28) Plan. The launch of our mobile banking app, AffinAlwaysX, in May 2025 has been instrumental in accelerating CASA growth.' He added, 'Our inaugural USD300 million Senior Unsecured Notes issuance was 3.5 times oversubscribed, signalling strong global investor confidence. This milestone enhances our access to cost-effective USD funding and strengthens our position to pursue strategic cross-border financing opportunities aligned with AX28.' 'Despite a 19.6% YoY increase in CASA deposits, the Group saw a 9.2% quarter-on-quarter (QoQ) decline, attributed to a shift towards Fixed Deposits amid global market uncertainties. AFFIN is actively implementing a new CASA payroll strategy to reignite and sustain CASA growth. Enterprise Banking continues to gain momentum, delivering a 15.4% YoY increase in loans— expected to positively impact the Group's Net Interest Margin.' Net interest income (NII) recorded RM418.8 million, an increase of RM32.8 million or 8.5% as compared to the previous corresponding period of RM386.0 million. While non-interest income for the period under review was RM324.8 million, an increase of 14.3% or RM40.7 million from RM284.1 million registered in the previous corresponding period.
Focus Malaysia
11-08-2025
- Business
- Focus Malaysia
MBSM maintains neutral outlook on banking sector amid mixed economic signals
AN improved or worsening economic outlook remains the core rerating driver. An overly negative result increases the likelihood of further overnight policy rate (OPR) cuts, which are bad for earnings and valuations. The usual themes persist: Headwinds such as net interest margin (NIM) compression, possible asset quality and provisioning issues, and weak economic growth prospects afflict the industry, while tailwinds vary on a case-by-case basis. 'Hence, we continue to advocate for our bottom-up approach to stocks with a preference for defensive names,' said MBSB Research. Most banks should see NIM compression coming from the recent OPR hike. We are not expecting anything overly dramatic. There is some offset coming from SRR relaxation. The liquidity situation is said to improve in the second half of calendar year 2025 (2HCY25). A few banks believe that they are poised to outperform others on this front. Namely, AFFIN and RHB, which are both expecting to see a large influx of current account savings account balances this quarter. We are expecting a strong non-interest income (NIM) quarter, as positive bond yield movements and currency volatility bode well for the trading and forex income front. While some banks are guiding for improving fee income momentum, poor market conditions this quarter could impact unit trust and private banking segments. AMMB management has guided for this in their recent results day. PBK may also be affected, given its large dependence on its unit trust income. As most banks are already well-buffered, expect only a few instances of large overlay allocations. Asset quality should see some uptick in select segments. Banks have already revised NCC guidance in the previous quarter. We expect most to adhere to the renewed guidance. Most have expressed contentment with the current level of loan loss coverage. Hence, we think instances of heavy provisions will be few. Except for BIMB, none of the renewed guidance seems to deviate too far from NCC levels seen in previous years. We are more optimistic on 2HCY25's provisioning outlook, as recoveries related to a large oil and gas exposure should begin flooding then. Asset quality should remain neutral for the most part, but we expect some banks to see some worsening in select segments. The residential mortgages segment has been earmarked as a source of potential concern (ABMB, AFFIN; BIMB showed concerning gross impaired loan (GIL) uptick on this front last quarter, but is guiding for improvement). Out of the banks under our coverage, RHB seems the most pessimistic, explicitly guiding for a GIL ratio worsening to accelerate in 2HCY25. MBSB Research maintains their NEUTRAL call and identifies top downside risks such as economic slowdown which affects growth prospects and steeper-than-expected NIM compression. —Aug 11, 2025 Main image: The Star
Borneo Post
10-07-2025
- Business
- Borneo Post
Hajiji: SMJ Plan driving modern, inclusive and competitive Sabah economy
Hajiji signing the plaque commemorating the opening of the AFFIN Bank Inanam branch on Thursday. INANAM (July 10): The State Government remains firmly committed to shaping a modern, competitive and inclusive economy for Sabah through the Hala Tuju Sabah Maju Jaya (SMJ) development plan, said Chief Minister Datuk Seri Panglima Hajiji Noor. 'Under the Hala Tuju Sabah Maju Jaya (SMJ) development plan, we have a clear direction. Our roadmap is designed to build an economy that is not only modern and competitive but also inclusive — uplifting every community, whether rural or urban,' he said. He explained that SMJ serves as the overarching framework for various sectoral blueprints, anchored on three foundational pillars: Agriculture, Industry, and Tourism, Investing in People and Enhancing Connectivity with a Green Approach. 'We are not just building an economy — we are building a shared future where the benefits of progress are felt across every district, including here in Inanam,' he said during the official opening of the AFFIN Inanam Branch at Plaza Kolombong on Thursday. Hajiji emphasised that a thriving economy must be underpinned by financial inclusion. 'A strong, accessible and inclusive banking system is vital to unlocking the full potential of our people and businesses. In Sabah, 98% of all businesses are SMEs — the backbone of local enterprise and employment,' he said. However, many SMEs still face real challenges, such as limited access to credit, digital readiness gaps, and difficulty adapting to evolving markets. 'Banks like AFFIN can help bridge these gaps through targeted financing for agriculture and eco-tourism, mentoring and advisory support, dedicated financing for women entrepreneurs, and financial literacy programmes — especially for youth entering the digital economy,' he said. He stressed the importance of empowering all Sabahans with the financial tools and support to grow, save and contribute meaningfully to the state's economy. 'Meaningful development must begin with access to capital and services that support entrepreneurship and upward mobility. For our rural communities, small businesses and youth venturing into the digital economy, this access must unlock real progress,' he added. The Chief Minister said with AFFIN's comprehensive suite of banking services, Sabah is moving towards a more financially inclusive society where opportunities reach all. He also congratulated AFFIN Group on its milestone achievements, including: Winning a place in the Fortune Southeast Asia 500 for the second year in a row and a strong debut in the USD bond market with 3.5 times oversubscription, demonstrating investor confidence in AFFIN's fundamentals.
Borneo Post
21-05-2025
- Business
- Borneo Post
Affin yet to see major contribution from Sarawak govt despite strong CASA growth
While Affin's Sarawak presence continues to strengthen through increased non-state-backed deposits, synergies from its strategic push into the state have yet to be fully realised. KUCHING (May 21): Affin Bank has yet to see meaningful contribution from the Sarawak government in its loans and deposits despite healthy current account savings account (CASA) growth and steady earnings, says analysts with Kenanga Research. The research house noted that while Affin's Sarawak presence continues to strengthen through increased non-state-backed deposits, synergies from its strategic push into the state have yet to be fully realised. 'We gathered that the Sarawak state government is still not a significant component in AFFIN's loans and deposit books, suggesting that synergies have yet to be reflected,' it said in a note on Tuesday. To recap, the bank has posted first-quarter financial year 2025 (1QFY25) net profit of RM124.1 million supported by stronger net income, which was in line with expectations and accounting for 20 per cent of Kenanga's full-year forecast and 22 per cent of the consensus forecast. Analysts highlighted that Affin has already surpassed its full-year CASA target of 31 per cent, with deposits in Sarawak helping to offset a decline in working capital loans. These now make up 16 per cent of the group's loan portfolio, amid uncertainties in global trade. 'This comes even before AFFIN implements payroll services to accommodate up to 30,000 civil servants in the state,' it added. Similarly, TA Securities viewed the group's CASA performance positively with its growth driven by strong corporate flows. 'This could improve further with the potential addition of Sarawak's payroll mandate,' it said. Kenanga Research added that a stronger relationship with the Sarawak government could serve as a key catalyst for the bank moving forward. 'Near-term catalysts could emerge from the Sarawak State Government's eventual large CASA deposits injection into Affin. 'From our own model estimates, every RM1 billion in new CASA deposits could lower cost of funds by 3 basis points and generate a return on equity (ROE) improvement of 10 basis points,' the research house added. Affin Bank Kenanga Research
BusinessToday
19-05-2025
- Business
- BusinessToday
Affin Group's 1QFY25 Profit Rises To RM124 Million Stemming from Better Net Income
Affin Bank Tower at TRX Affin Group (AFFIN) has announced a Profit Before Tax (PBT) after zakat of RM178.2 million for the first quarter ended March 31, 2025. This represents a RM34.1 million or 23.7% increase compared to the RM144.0 million recorded in the same period last year. The increase in PBT was primarily driven by a higher net income of RM39.4 million. The Group's gross loans and financing grew by 7.1% year-on-year, reaching RM72.9 billion as of March 31, 2025, compared to RM68.0 billion as of March 31, 2024. Customer deposits increased by 5.2% to RM75.5 billion. The Current Account and Savings Account (CASA) ratio showed significant improvement, rising to 32.2% as of March 31, 2025, from 24.9% as of March 31, 2024. Datuk Wan Razly Abdullah, President & Group Chief Executive Officer of AFFIN Group, stated that the first-quarter performance reflects the continued execution of the AFFIN Axelerate 2028 (AX28) Plan, with PBT increasing by 23.7% year-on-year to RM178.2 million. He attributed this growth to higher net interest income, an improved funding mix, and a stronger contribution from associates. Despite the tight monetary environment and global macroeconomic headwinds, the Group maintained prudent cost and credit discipline. While remaining cautious about the near-term outlook due to external volatility, AFFIN Group expresses confidence in its ability to navigate the landscape, supported by healthy asset quality, a well-diversified balance sheet, and disciplined execution. Related
