Bank Negara Malaysia (BNM) has approved Affin Bank Bhd’s proposed acquisition of 100% equity interest in Pheim Asset Management Sdn Bhd for RM50 million in cash, according to a bourse filing. The approval, granted via a letter dated April 2, is subject to conditions including post-completion reviews of certain operational processes and an independent external assessment prior to system integration.
As at June 30, 2025, Pheim Asset Management managed approximately RM876 million in assets under management (AUM). For the financial year ended Dec 31, 2024, the company recorded profit after tax of RM1.58 million, net assets of RM25.61 million, and RM21.60 million in cash and fixed deposits.
Affin Bank has previously indicated plans to scale up its AUM rapidly following the acquisition, with a long-term target of RM6 billion. The bank is expected to tap funding from sources including the Sarawak Sovereign Wealth Future Fund, external investment managers, and high-net-worth clients from its premium and private banking segments. It may also deploy treasury funds into fixed income strategies managed under the platform.
The RM50 million purchase price implies a price-to-AUM ratio of 5.7%, higher than the 3.08% valuation seen when Affin sold Affin Hwang Asset Management to CVC Capital Partners in 2022. The deal also reflects a price-to-book multiple of two times and a price-earnings ratio of about 30 times.
Affin exited the asset management business in July 2022 after disposing of its 63% stake in Affin Hwang Asset Management for RM1.42 billion. Analysts estimate that every RM1 billion in AUM could generate around RM2 million to RM2.5 million in fee income, highlighting the potential earnings contribution from the acquisition.
Shares in Affin Bank closed one sen lower at RM2.45, giving the bank a market capitalisation of RM6.21 billion. The stock has declined 6.8% over the past year.
