KUALA LUMPUR: Affin Bank Bhd’s net profit rose by 1.5 per cent to RM135.50 million in the first quarter ended March 31, 2026 (1Q 2026), as compared with RM124.09 million in the same period last year.
In a filing with Bursa Malaysia, the bank said the increase in net profit was due to higher net income of RM110.5 million, partially offset by higher operating expenses of RM31.6 million, higher allowance for impairment losses of RM60.2 million, and lower share of results from associates of RM16.0 million.
Revenue also increased to RM654.44 million from RM543.93 million previously.
“Gross loans and financing marked a year-on-year growth of 12.6 per cent, achieving a value of RM82.1 billion, compared to RM72.9 billion as at March 31, 2025.
“Customer deposits increased by 3.5 per cent to RM78.1 billion. The group’s total asset base has expanded to RM125.7 billion, driven primarily by this continued growth in the loan and financing portfolio,” it said.
Net interest income (NII) amounted to RM233.3 million, an increase of RM27.3 million, or 13.3 per cent, from the previous financial period of RM206.0 million, it said.
The bank said non-interest income for the period under review was RM186.0 million, an increase of RM45.9 million, or 32.7 per cent, from RM140.2 million in the previous corresponding period.
“For the financial period ended March 31 2026, the group recorded a net income of RM654.4 million, compared with RM544.0 million for the financial period ended March 31, 2025, an increase of RM110.4 million or 20.3 per cent, mainly driven by higher income derived from net fee and commission income and NII,” it said.
Meanwhile, the group said that for the financial period ended March 31, 2026, Affin Islamic Bank Bhd’s profit before tax decreased by 33.1 per cent to RM58.3 million, compared with RM87.1 million in the previous financial period.
“Affin Islamic Bank registered a higher net financing income of RM28.4 million, backed by strong financing growth during the current quarter, but also provided for a higher allowance for impairment losses of RM41.2 million during the current quarter,” it said.
Affin Bank said that as at March 31, 2026, the group’s total loans, advances and financing rose 12.6 per cent year-on-year to RM82.1 billion.
“The growth was mainly driven by a 19.4 per cent increase in the enterprise banking segment, a 10.0 per cent increase in the community banking segment, and a 17.0 per cent increase in the corporate banking segment.
“Housing loans grew by 7.7 per cent and auto finance loans increased by 4.4 per cent,” it said.
On the deposits, the group’s customer deposits increased by 3.5 per cent to RM78.1 billion, it said.
“Current account and savings account (CASA) rose 5.8 per cent quarter-on-quarter to RM21.2 billion, while the CASA ratio stood at 27.11 per cent as at March 31, 2026, compared with 32.21 per cent as at March 31, 2025,” it said.
Affin Bank president and group chief executive officer Datuk Wan Razly Abdullah said its base view is that the ongoing global conflict will persist until mid-year, after which oil prices are expected to begin normalising.
He said trade and commerce are also expected to gradually return to normal in the second half of the year.
“The issuance of RM500 million Additional Tier 1 Capital Securities in May received strong investor interest and was two times oversubscribed.
“This Tier-1 capital will strengthen the group’s capital position and improve its total capital ratio by 50 basis points. This is a prudent move given the current global uncertainty,” he added. – BERNAMA
