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BusinessToday
2 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.
Daily Express
3 days ago
- Business
- Daily Express
Affin Group posts 22.1 per cent rise in first-half profit to RM358 million
Published on: Friday, August 15, 2025 Published on: Fri, Aug 15, 2025 Text Size: KUALA LUMPUR: Affin Group posted a profit before tax (PBT) after zakat of RM358 million for the six months ended June 30 this year, marking a 22.1 per cent year-on-year increase from RM293.1 million in the same period last year. The growth was supported by a RM160.9 million rise in net income, partly offset by a RM80.2 million increase in impairment allowances. The Group's gross loans and financing grew by 7.3 per cent to RM74.1 billion, while customer deposits rose 9.8 per cent to RM78.2 billion, with its Current Account and Savings Account (Casa) ratio improving to 28.2 per cent from 25.9 per cent a year earlier. President and Group Chief Executive Officer Datuk Wan Razly Abdullah said the performance reflected the success of the Group's Axelerate 2028 (AX28) Plan, supported by the launch of its AffinAlwaysX mobile banking app in May 2025. 'Our inaugural US$300 million Senior Unsecured Notes issuance was 3.5 times oversubscribed, signalling strong global investor confidence and strengthening our cross-border financing capabilities,' he said. He noted that despite a 19.6 per cent year-on-year increase in CASA deposits, there was a 9.2 per cent quarter-on-quarter drop due to shifts towards fixed deposits, adding that a new Casa payroll strategy is underway to boost growth. 'Affin's MSCI ESG rating upgrade from 'A' to 'AA' and a RM13 billion loan pipeline highlight the momentum we have, even with some deals temporarily delayed by market conditions,' Datuk Wan Razly added. Affin Islamic Bank Berhad recorded a PBT of RM185.4 million, up 24.6 per cent from RM148.8 million, driven by an RM80.6 million increase in net financing income, while non-interest income for the Group grew 14.3 per cent to RM324.8 million. The Group's gross impaired loan ratio improved to 1.83 per cent from 1.94 per cent at the end of 2024, with a loan loss coverage of 80.43 per cent and a loan loss reserve of 123.08 per cent, alongside strong capital and liquidity ratios exceeding regulatory requirements. 'With solid capital buffers, robust liquidity and disciplined risk management, Affin remains on track to deliver sustainable value creation, leveraging digital capabilities and expanding both its Islamic and Enterprise Banking franchises,' Datuk Wan Razly said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
