AFFIN Group has posted a robust start to the financial year, recording a profit before tax (PBT) after zakat of RM178.2 million for the first quarter ended 31 March 2025. This reflects a significant year-on-year increase of 23.7%, or RM34.1 million, compared to RM144.0 million in the same period last year. The growth in profitability was driven by a RM39.4 million boost in net income.
Total gross loans and financing rose by 7.1% year-on-year to RM72.9 billion from RM68.0 billion, while customer deposits grew by 5.2% to RM75.5 billion. The Group’s Current Account and Savings Account (CASA) ratio saw a marked improvement, increasing to 32.2% from 24.9% a year earlier.
President and Group Chief Executive Officer of AFFIN Group, Datuk Wan Razly Abdullah, attributed the performance to consistent delivery under the AFFIN Axelerate 2028 (AX28) strategic plan. “Our first quarter performance reflects continued execution of our AX28 plan, with PBT rising 23.7% year-on-year to RM178.2 million. This was underpinned by higher net interest income, improved funding mix, and stronger contributions from associates,” he said.
Despite ongoing global macroeconomic uncertainty and a tight monetary environment, the Group maintained rigorous cost and credit discipline. Datuk Wan Razly noted that AFFIN remains cautiously optimistic in the face of market volatility, supported by a well-diversified balance sheet, solid asset quality, and disciplined strategy execution.
The Group also received an A3 international credit rating from Moody’s Ratings during the quarter. “This milestone enhances our credit profile and global standing, allowing us to access more cost-efficient USD funding, broaden our investor base, and unlock strategic cross-border financing opportunities,” he added.
As part of its digital transformation agenda, AFFIN successfully launched its next-generation mobile banking platform, AffinAlwaysX, to 5,700 employees ahead of its public release on 22 May 2025. The application features enhanced user interface and experience (UI/UX), upgraded security protocols, and new functionalities designed to accelerate user growth to a projected 1.3 million by year-end. The Group expects this initiative to strengthen CASA retention and support its targeted payroll acquisition strategy.
For the first quarter, the Group’s net interest income stood at RM206.0 million, reflecting a 6.4% increase from RM193.7 million in the previous quarter. Non-interest income registered a marginal decline of 1.7% to RM140.1 million.
AFFIN Islamic Bank Berhad posted a PBT of RM87.1 million, down from RM98.6 million a year ago, impacted by increased operating expenses and higher impairment allowances totalling RM28.6 million.
The Group’s asset quality remained resilient, with the gross impaired loan (GIL) ratio improving to 1.84% from 1.94% as of 31 December 2024. Loan loss coverage (LLC) and loan loss reserve (LLR) stood at 81.29% and 125.76% respectively, underscoring AFFIN’s prudent credit risk management.
Operating expenses marginally increased to RM379.1 million from RM378.9 million in the prior year. The cost-to-income ratio improved significantly to 69.7%, down from 75.1% in the corresponding period.
AFFIN continued to deliver strong momentum in its lending portfolio, with loans, advances, and financing up 7.1% year-on-year. Growth was primarily driven by a 10.3% increase in the Community Banking segment and a 10.8% rise in the Enterprise Banking segment, while Corporate Banking saw a 1.7% decline. Housing loans increased by 6.8%, and Auto Finance by 6.0%.
Customer deposits rose to RM75.5 billion, supported by a 36.2% year-on-year increase in CASA balances to RM24.3 billion. The CASA ratio improved to 32.2%, exceeding the FY2025 target of 31%.
AFFIN remains well-capitalised, with its Total Capital Ratio at 17.4%, Tier 1 Capital Ratio at 15.0%, and Common Equity Tier 1 (CET1) Ratio at 13.5%. Liquidity also remained strong, with a 12-month average Liquidity Coverage Ratio of 167.73%, comfortably above the 100% regulatory requirement.
Further cementing its market leadership, AFFIN played a lead advisory and financing role in the recent acquisition of Cold Storage Singapore by Macrovalue, with more high-profile deals in the pipeline. In addition, the Group’s partnership with MUFG Bank (Malaysia) Berhad – Asia’s fifth largest bank – will enhance its capabilities in Islamic Finance, Green Finance, and Digital Transformation, and support cross-border trade and investment.
