AFFIN Group (“AFFIN” or “the Group”) posted a Profit Before Tax (PBT) of RM755.7 million for the financial year ended 31 December 2025, marking a 7.8% increase from RM701.0 million in FY2024. The growth was primarily driven by a RM271.8 million increase in net income, partially offset by higher operating expenses of RM33.9 million and an allowance for impairment losses of RM31.2 million, compared with a write-back of RM151.4 million in the prior year.
CEO Commentary
Datuk Wan Razly Abdullah, President & Group CEO, said, “AFFIN achieved record FY2025 PBT, supported by the highest-ever net income and a 47.4% surge in operating profit. Strong asset quality efforts have reduced the Gross Impaired Loan (GIL) ratio to 1.64%, while robust capital and liquidity positions provide a solid platform to capture growth opportunities in 2026 and enhance shareholder value.”
Quarter 4 PBT reached RM215.6 million, up 18.4% QoQ, driven by Net Interest Margin expansion and a 30.5% increase in fee-based income. The Group’s asset base expanded to RM124.1 billion, with loans and financing growing 10.4% YoY to RM79.5 billion.
AFFIN maintains a positive outlook for Malaysia’s economy in 2026, with projected GDP growth of 4.0–4.5%, supported by resilient domestic demand, steady investment, and stronger external trade flows.
Business and Strategic Highlights
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Customer base expanded 13% YoY to 1.74 million, supporting CASA growth.
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Diversified revenue streams, including Islamic Structured Products and investment banking advisory, strengthened wealth and advisory income.
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The Group maintains a robust business pipeline of ~RM14 billion, providing clear growth visibility.
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Recognised with the Best New Bond Award for its debut US$300 million senior unsecured notes issuance and Best Primary Placement award for the Pavilion REIT RM360 million placement, reflecting strong investor confidence.
Financial Performance
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Net Interest Income (NII): RM874.8 million (+5.9% YoY)
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Islamic Banking PBT: RM449.7 million (+39.1% YoY), supported by higher net income and impairment write-backs
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Non-Interest Income: RM699.9 million (+7.3% YoY)
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Net Income: RM2,441.5 million (+12.5% YoY)
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Operating Expenses: RM1,702.0 million; cost-to-income ratio improved to 69.7% from 76.9%
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Operating Profit Before Allowances: RM739.5 million (+47.4% YoY)
Asset Quality and Capital Position
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GIL Ratio: 1.64% (down from 1.94% in FY2024)
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Loan Loss Coverage (LLC): 75.7%
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Loan Loss Reserve (LLR): 121.3%
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Total Loans, Advances & Financing: RM79.5 billion (+10.4% YoY)
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Customer Deposits: RM80.2 billion (+7.6% YoY); CASA at RM20.01 billion, ratio 25.0%
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Capital Adequacy: Total Capital 17.3%, Tier 1 14.8%, CET1 13.4%
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Liquidity Coverage Ratio: 162.4%
Dividends
The Board has proposed a single-tier final dividend of 8.53 sen per share, totaling RM216 million, reflecting AFFIN’s strong capital position and record FY2025 performance.
