Affin Bank's 2Q Net Profit Falls To RM127.52 Mln
KUALA LUMPUR, Aug 14 (Bernama) -- Affin Bank Bhd’s net profit fell by 11.1 per cent to RM127.52 million in the second quarter ended June 30, 2026 (2Q 2026) compared to RM143.48 million in 2Q 2025.
The bank, in a Bursa Malaysia filing, said the lower profit was primarily attributable to a higher allowance for impairment losses of RM38.1 million and a lower share of associates’ results of RM18.4 million, which was offset by a higher net income of RM30.9 million and a lower operating expense of RM11.0 million.
However, Affin Bank recorded higher revenue of RM647.21 million, up 5.0 per cent from RM616.30 million previously.
For the six months ended June 30, 2026 (1H 2026), net profit fell to RM263.01 million compared to RM267.57 million in the previous corresponding period.
Revenue increased to RM1.30 billion versus RM1.16 billion previously, mainly driven by higher net fee and commission income and net interest income (NII).
NII increased to RM468.5 million versus RM418.8 million recorded in 2H 2025, while non-interest income rose to RM348.7 million from RM324.8 million registered in the previous corresponding period.
Operating expenses increased slightly to RM819.7 million from RM799.1 million in 2H 2025, while the cost-to-income ratio for the period under review was 63.0 per cent, down from 68.9 per cent.
As at June 30, 2026, the group’s gross impaired loan ratio improved marginally to 1.82 per cent year-on-year (y-o-y) from 1.83 per cent.
The group’s total loans, advances and financing rose 13.6 per cent y-o-y to RM84.1 billion in 1H 2026, mainly driven by a 17.3 per cent rise in the enterprise banking segment, a 9.8 per cent increase in the community banking segment, and a 22.4 per cent growth in the corporate banking segment.
Housing loans grew by 7.5 per cent, and auto finance loans increased by 4.3 per cent. On deposits, the group’s customer deposits increased by 3.0 per cent y-o-y to RM81.1 billion.
“Current account and savings account rose by 2.2 per cent quarter-on-quarter to RM21.6 billion,” Affin Bank said.
The group’s total capital ratio was 17.05 per cent, Tier 1 capital ratio at 14.58 per cent, and common equity tier 1 (CET1) capital ratio at 12.62 per cent.
The liquidity coverage ratio stood at a healthy 152.3 per cent, well above the regulatory requirement of 100 per cent.
Group chief executive officer Datuk Wan Razly Abdullah said the US-Iran conflict has extended beyond the earlier ceasefire expectations, intensifying cost-of-living pressures in Malaysia and placing greater strain on consumer sentiment and spending.
“In response, the group has further tightened its underwriting standards,” he added.
Looking ahead, the group and the bank continue to optimise their capital, maintain adequate liquidity buffers, and navigate a dynamic global economic landscape characterised by geopolitical uncertainties, evolving trade policies, financial market volatility, and uneven growth prospects across key markets.
-- BERNAMA