KUCHING: AFFIN Group lifted its profit before tax after zakat by 22.1 per cent to RM358 million for the first half of 2025, as higher net income offset increased impairment allowances.
The result marked an RM64.9 million improvement from RM293.1 million in the same period last year.
The group’s President and Chief Executive Officer, Datuk Wan Razly Abdullah, said the strong first-half performance reflected the effectiveness of the bank’s Axelerate 2028 Plan.
“The launch of our mobile banking app, AffinAlwaysX, in May has been instrumental in accelerating CASA growth,” he said in a statement.
AFFIN said gross loans and financing grew 7.3 per cent to RM74.1 billion, while customer deposits climbed 9.8 per cent to RM78.2 billion.
“The current account and savings account (CASA) ratio improved to 28.2 per cent from 25.9 per cent. Net interest income rose 8.5 per cent to RM418.8 million, and non-interest income increased 14.3 per cent to RM324.8 million,” it said.
It also pointed out that Affin Islamic Bank Bhd’s profit before tax grew 24.6 per cent to RM185.4 million, driven by an RM80.6 million rise in net financing income.
The group said its maiden USD300 million senior unsecured notes issuance was 3.5 times oversubscribed, reflecting strong global investor confidence and strengthening its position for strategic cross-border financing opportunities.
It noted that while CASA deposits rose 19.6 per cent year-on-year, they fell 9.2 per cent quarter-on-quarter as customers shifted to fixed deposits amid global uncertainties. A new payroll strategy has been introduced to reignite CASA growth.
“Enterprise banking loans rose 15.4 per cent year-on-year, expected to support net interest margin. The gross impaired loan ratio improved to 1.83 per cent from 1.94 per cent at end-2024, with loan loss coverage at 80.43 per cent and loan loss reserve at 123.08 per cent,” it said.
It added that operating expenses increased to RM799.1 million, but the cost-to-income ratio improved to 68.9 per cent from 74.7 per cent.
“Housing loans grew 7.1 per cent and auto finance loans 5.2 per cent,” it reported further.
The group said its total capital ratio stood at 17.2 per cent, tier 1 capital ratio at 14.8 per cent and common equity tier 1 ratio at 13.4 per cent, with a liquidity coverage ratio of 171.1 per cent.
“We remain on track with our AX28 strategy to grow our digital banking, Islamic and enterprise banking businesses, and pursue opportunities in domestic and cross-border markets,” it said.
