Latest news with #AffinBankBhd
The Star
6 days ago
- Business
- The Star
Trading ideas: IOI Properties, Affin, Nestcon, Grean Ocean, I-Bhd, Sime Property, Bintai Kinden, TMK, HE
KUALA LUMPUR: Here is a recap of the announcements that made headlines in Corporate Malaysia. IOI Properties Group Bhd is acquiring the remaining 50.1% stake in Singapore's South Beach development from City Developments Ltd for RM2.75bn (SGD834.2mn), gaining full ownership of the mixed-use asset. Affin Bank Bhd has raised USD300mn (RM1.3bn) through its first US dollar bond issuance under a USD2bn Euro Medium Term Note programme. The notes carry a 5.112% annual fixed rate and will be listed on the Singapore Exchange. Construction company Nestcon Bhd said its diversification into property development will take longer and plans will be revised. Green Ocean Corp Bhd plans to reallocate RM20.2mn from its rights issue funds, originally intended for its glove business, to support the expansion of its food and beverage segment, citing ongoing challenges in the glove industry such as falling prices and low utilisation. I-Bhd has committed RM10.0mn to implement artificial intelligence and robotics infrastructure across its income-generating assets in i-City, with full rollout targeted by 2028. Sime Darby Property Bhd has raised the minimum living wage for employees in the B40 income group by 80%, from RM1,500 to RM2,700 a month, as part of its commitment to employee well-being and inclusive growth. Bintai Kinden Corporation Bhd has seen its independent non-executive chairman, Datuk Ng Choon Koon, become a substantial shareholder again after acquiring shares on the open market and raising his stake to 6.62%. TMK Chemical Bhd announced that a major supplier will terminate its alkali distribution agreement in Vietnam effective Dec 31, 2025. HE Group Bhd ,which made its debut on Bursa's ACE Market just over a year ago, is planning to transfer to the Main Market.
The Star
20-05-2025
- Business
- The Star
Affin Bank cautious yet confident amid volatility
Affin Bank president and group CEO Datuk Wan Razly Abdullah PETALING JAYA: Affin Bank Bhd recorded double-digit year-on-year (y-o-y) growth in pre-tax profits to RM178.2mil for its first quarter ended March 31, 2025 (1Q25). The 23.7% increase was attributed to higher net income of RM39.4mil and a stronger share of results from associates amounting to RM21mil. 'Our 1Q25 performance reflects continued execution of the Affin Axelerate 2028 Plan, with pre-tax profits rising 23.7% y-o-y. 'This was underpinned by higher net interest income, an improved funding mix, and stronger contributions from associates,' Affin Group president and group CEO Datuk Wan Razly Abdullah said in a statement. 'Amid a persistently tight monetary environment and ongoing global macroeconomic headwinds, we continued to exercise prudent cost and credit discipline. '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 added. The bank's gross loans and financing grew 7.1% y-o-y to RM72.9bil, compared to RM68bil as of Mar 31, 2024. Customer deposits rose by 5.2% to RM75.5bil, while current account and savings account (CASA) ratio improved significantly to 32.2% as of March 31, 2025, up from 24.9% a year ago. 'Our CASA ratio surpassed financial year 2025 (FY25) target of 31%, as a result of our continued efforts to lower the group's cost of funds. 'We expect the momentum in CASA growth to snowball into lower cost of funds and net interest margin expansion,' Wan Razly said. Net interest income gained 6.4% to RM206mil, compared to RM193.7mil in the preceding financial quarter. Non-interest income came in at RM140.1mil, a slight decrease of 1.7% or RM2.4mil from RM142.5mil in the previous corresponding period. The bank said it has a strong business pipeline, which includes financial advisory services and debt capital market deals. Wan Razly highlighted Affin's recent lead role in financing of Macrovalue's acquisition of Cold Storage Singapore, adding that many more landmark deals are expected on this front. 'Our recent collaboration with MUFG Bank (M) Bhd, the fifth-largest bank in Asia, underscores our commitment to providing tailored solutions, facilitating cross-border trade and investment, and expanding our expertise in key areas, including Islamic finance, green finance, and digital transformation,' he said. 'By leveraging our deep market knowledge and MUFG's global network, we are unlocking new opportunities for our customers and business partners, helping them scale in an increasingly interconnected global economy,' he added. Meanwhile, the bank said its first international credit rating of A3 from Moody's Ratings strengthens its credit profile and elevates the group's standing in the global capital markets. 'This positions us to secure more cost-efficient US dollar funding, diversify our investor base, and unlock strategic cross-border financing opportunities that support our long-term growth trajectory,' Wan Razly said.
New Straits Times
20-05-2025
- Business
- New Straits Times
Affin Bank eyes growth boost from Sarawak government's deposit injection
KUALA LUMPUR: Affin Bank Bhd could see positive catalysts arising from the Sarawak State Government's initial injection of substantial current and savings account (CASA) deposits into the bank. Kenanga Research, based on its internal model, estimated that every RM1 billion increase in CASA deposits could reduce the cost of funds by 3 basis points (bps) and boost return on equity (ROE) by 10 bps. Affin Bank Bhd reported a 12.6 per cent rise in net profit for the first quarter of 2025 (1Q25) to RM124.1 million, supported by stronger net income. Kenanga noted that the bank's quarterly performance accounted for 20 per cent of its full-year projection and 22 per cent of the consensus forecast. "The group's net interest margin (NIM) outlook is expected to be brighter, with it already beating its financial year 2025 (FY25) CASA target of 31 per cent, thanks to more non-state-backed deposits in Sarawak. "This comes even before Affin Bank implements payroll services to accommodate up to 30,000 civil servants there," it added. The firm said that following its model revisions, it has adjusted its earnings forecasts for Affin Bank for FY25 and financial year 2026 (FY26) lower by 2 per cent and 1 per cent, respectively. Meanwhile, Hong Leong Investment Bank (HLIB) said it has factored in the enlarged share base resulting from the recent bonus issue. Despite this, it is maintaining its target price of RM3.00 and reaffirming its 'Buy' recommendation on Affin Bank. HLIB explained that this is mainly due to a revision in its beta assumption from 1.0 to 0.9, indicating its belief that the bank now carries a lower risk profile. "We believe the premium is fair given the emergence of the Sarawak Government as Affin Bank's largest shareholder, presenting it with better prospects to leverage the state's growth ambitions. "That said, we believe Affin's risk-reward profile remains tilted to the upside, with significant growth prospects that are yet to fully materialise. Further upside largely hinges on tangible benefits emerging from the Sarawak government's strategic involvement," it added.
New Straits Times
19-05-2025
- Business
- New Straits Times
Affin posts 12.6pct higher profit to RM124.1mil in Q1
KUALA LUMPUR: Affin Bank Bhd's net profit rose 12.6 per cent to RM124.1 million in the first quarter ended March 31, 2025 (1Q25) from RM110.2 million a year ago. In a statement today, the bank said the improved performance was primarily driven by a higher net income of RM39.4 million. Affin's revenue for the quarter increased to RM543.93 million from RM504.54 million in 1Q24. As a result, the bank registered a higher earnings per share of 5.17 sen against 4.70 sen previously. Meanwhile, Affin Bank's gross loans and financing marked a year-on-year growth of 7.1 per cent, achieving a value of RM72.9 billion compared to RM68.0 billion as of March 31, 2024. Customer deposits increased 5.2 per cent to RM75.5 billion, while current account and savings account (CASA) ratio continued to improve significantly to 32.2 per cent per cent as of March 31, 2025, compared to 24.9 per cent in the same period last year. The bank's interest income (NII) recorded RM206.0 million, an increase of RM12.3 million or 6.4 per cent compared to the preceding financial quarter of RM193.7 million. Furthermore, Affin Islamic Bank Bhd recorded a pre-tax profit of RM87.1 million for the financial period ended March 31, 2025, a decrease of RM11.5 million as compared to RM98.6 million in the previous corresponding period. The result was mainly attributable to a higher operating expense and a higher allowance for impairment losses of RM13.0 million and RM28.6 million respectively. Affin Group president and group chief executive officer Datuk Wan Razly Abdullah said the bank's first quarter performance reflects continued execution of its Affin Axelerate 2028 (AX28) Plan, with pre-tax profit rising 23.7 per cent year-on-year to RM178.2 million. He added that this was underpinned by higher net interest income, improved funding mix, and a stronger contribution from associates. "Amid a persistently tight monetary environment and ongoing global macroeconomic headwinds, we continued to exercise prudent cost and credit discipline. "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 noted. Wan Razly also said Affin's recent attainment of its first international credit rating of A3 from Moody's Ratings strengthens the group's credit profile and elevates its standing in global capital markets. This positions the bank to secure more cost-efficient US dollar funding, diversify its investor base and unlock strategic cross-border financing opportunities that support its long-term growth trajectory. Meanwhile, Wan Razly noted that AffinAlwaysX, the bank's new mobile banking application, was launched internally to 5,700 employees and is performing well ahead of its public rollout on May 22. "Designed with enhanced UI/UX features, excellent security, and exciting upgrades, AffinAlwaysX is expected to drive exponential growth towards a target of 1.3 million users by year-end. "This initiative will also strengthen CASA stickiness, supported by a focused payroll acquisition strategy. "Our CASA ratio stood at 32 per cent as at 1Q25, surpassing the FY25 target of 31 per cent, is a result of our continued efforts to lower the group's cost of funds. "We expect the momentum in CASA growth to snowball into lower cost of funds and net interest margin expansion," he added. Wan Razly said Affin's strong business pipeline includes financial advisory services and debt capital market deals, with the recent lead role in the financing of Macrovalue's acquisition of Cold Storage Singapore, with many more landmark deals to come. "Our recent collaboration with MUFG Bank (Malaysia) Bhd, the fifth largest bank in Asia, underscores our commitment to providing tailored solutions, facilitating cross-border trade and investment, and expanding our expertise in key areas, including Islamic finance, green finance, and digital transformation. "By leveraging our deep market knowledge and MUFG's global network, we are unlocking new opportunities for our customers and business partners, helping them scale in an increasingly interconnected global economy," he said.
The Star
19-05-2025
- Business
- The Star
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.
