Affin Bank posts RM127.52 million net profit in Q2, revenue up 5%

Affin Bank experienced a dip in its second-quarter net profit, reporting RM127.52 million, an 11% decline compared to the RM143.49 million earned in the same period last year. This decrease is attributed to higher impairment allowances and reduced contributions from its associate companies. However, the group's quarterly revenue saw a modest increase of 5%, reaching RM647.21 million, up from RM616.3 million in the second quarter of 2025.

For the cumulative first half of 2026, Affin Bank recorded a net profit of RM263.02 million, slightly down from RM267.57 million in the prior year. Despite this, net income surged by 12.2% to RM1.30 billion. Net interest income (NII) for the first half of 2026 climbed 11.9% to RM468.5 million, while non-interest income grew 7.3% to RM348.7 million. Profit Before Tax (PBT) for the first half was RM346.1 million, a slight decrease of 3.3% from RM358.0 million in the same period last year.

Datuk Wan Razly Abdullah, Group President and CEO of Affin Group, noted that the prolonged US-Iran conflict has exacerbated the cost of living pressures in Malaysia, affecting consumer sentiment and spending. In response, the group has tightened its underwriting standards. "The group also issued an additional RM400 million AT1CS in July to strengthen its capital position and enhance its total capital ratio by 40 basis points, providing additional capital resilience amid current global uncertainties," he stated. The group's deposit planning remains robust, supported by healthy new payroll processing opportunities, and its Term Investment Accounts (TIA) saw a growth of RM1.37 billion, or 118%, in the first half of 2026.

Operationally, the group's gross loans, advances, and financing increased by 13.6% year-on-year to RM84.1 billion, while customer deposits grew 3.0% to RM81.1 billion. Affin's total assets now stand at RM129.4 billion, a 10.6% increase from the same period last year. The group's Gross Impaired Loan (GIL) ratio improved to 1.82% from 1.83% as of June 30, 2025. Loan Loss Coverage (LLC) and Loan Loss Reserves (LLR) were 71.16% and 116.80% respectively, indicating a strong credit risk buffer. The digital transformation agenda continues, with the launch of a new Retail Internet Banking platform on August 6, 2026, and plans for a digital wallet platform in the third quarter of 2026, followed by innovative digital products in the fourth quarter.