KUCHING: AFFIN Group’s FY2025 profit before tax rose 7.8 per cent to a record RM755.7 million.
Its President and Group Chief Executive Officer, Datuk Wan Razly Abdullah, said AFFIN delivered a record FY2025 performance, supported by its highest-ever net income and improved asset quality.
AFFIN reported profit before taxation (PBT) of RM755.7 million for the financial year ended December 31, 2025, up RM54.7 million or 7.8 per cent from RM701.0 million a year earlier.
The group said the increase was mainly driven by higher net income of RM271.8 million, partly offset by higher operating expenses of RM33.9 million and impairment losses of RM31.2 million, compared with a write-back of RM151.4 million in the previous year.
“AFFIN reported a record FY2025 PBT of RM755.7 million (+7.8 per cent year-on-year (YoY)), underpinned by our highest-ever net income and a 47.4 per cent surge in operating profit.
“This performance was further bolstered by our continuous asset quality efforts, which have driven the Gross Impaired Loan (GIL) ratio to an all-time low of 1.64 per cent,” he commented.
On performance drivers, the bank said that the net interest income rose 5.9 per cent to RM874.8 million, while non-interest income increased 7.3 per cent to RM699.9 million.
“Net income rose 12.5 per cent to RM2,441.5 million, while operating expenses increased to RM1,702.0 million and the cost-to-income ratio improved to 69.7 per cent from 76.9 per cent.”
For 4Q2025, AFFIN said PBT rose to RM215.6 million, up 18.4 per cent quarter-on-quarter, driven by net interest margin expansion and a 30.5 per cent increase in fee-based income derived from foreign exchange, fees and commissions.
It said its asset base grew to RM124.1 billion, supported by loans and financing that rose 10.4 per cent year-on-year to RM79.5 billion.
“This represents our highest quarterly profit under the Metamorphosis Transformation Plan.”
On the operating environment, Wan Razly said Malaysia’s 2026 outlook remained constructive, with real GDP growth broadly forecast in the 4.0 per cent to 4.5 per cent range.
He said the outlook is supported by resilient domestic demand, sustained investment activity and firmer external trade flows, while geopolitical risks and uneven regional conditions remain key considerations for banks.
“Brand elevation and strategic collaborations helped expand AFFIN’s customer base by 13 per cent to 1.74 million in 2025.
“Efforts to diversify revenue were supported by the expansion of Islamic structured products and investment banking advisory, alongside a business pipeline valued at about RM14 billion heading into 2026.”
To reward shareholders, the board proposed a single-tier final dividend of 8.53 sen per share, totalling RM216 million, based on issued share capital of 2.54 billion ordinary shares as at December 31, 2025.
“It is also a tangible acknowledgment of shareholders’ continued trust, confidence, and steadfast support as we continue to execute the AFFIN Axelerate 2028 (AX28) Plan,” he said.
In light of this, Affin Islamic Bank Berhad recorded PBT of RM449.7 million, up 39.1 per cent from RM323.3 million a year earlier.
On asset quality, it said the group’s GIL ratio improved to 1.64 per cent from 1.94 per cent, while loan loss coverage and loan loss reserve stood at 75.70 per cent and 121.30 per cent respectively.
“Total loans, advances and financing rose 10.4 per cent to RM79.5 billion, driven mainly by enterprise banking growth of 23.9 per cent, community banking growth of 10.0 per cent and corporate banking growth of 6.0 per cent.
“Housing loans rose 7.3 per cent and auto finance loans increased 4.4 per cent. Customer deposits increased 7.6 per cent to RM80.2 billion.”
It added that CASA rose 0.5 per cent quarter-on-quarter to RM20.01 billion, while the CASA ratio fell to 25.0 per cent from 30.4 per cent a year earlier.
AFFIN said its total capital ratio stood at 17.3 per cent, Tier 1 capital ratio at 14.8 per cent and CET1 ratio at 13.4 per cent, while its liquidity coverage ratio was 162.4 per cent, above the regulatory requirement of 100 per cent.
