By DayakDaily Team
KUCHING, May 19: Affin Bank Berhad has kicked off the year on a solid note, posting a 12.6 per cent increase in net profit to RM124.1 million for the first quarter ended March 31, 2025, up from RM110.2 million recorded in the same period last year.
The bank attributed the stronger performance to a rise in net income of RM39.4 million and improved contributions from its associates amounting to RM21 million.
In a statement today, Affin Bank said net interest income rose by 6.4 per cent to RM206 million. While non-interest income slipped slightly by 1.7 per cent to RM140.1 million, the figure was bolstered by nearly RM75 million in realised foreign exchange gains.
Gross loans and financing expanded by 7.1 per cent year-on-year to RM72.9 billion, while customer deposits climbed 5.2 per cent to RM75.5 billion.
Notably, the bank’s current account and savings account (CASA) ratio improved significantly to 32.2 per cent as of March 31, 2025, compared with 24.9 per cent a year ago.
Affin Group President and Group Chief Executive Officer Datuk Wan Razly Abdullah Wan Ali highlighted that profit before tax (PBT) surged 23.7 per cent to RM178.2 million, underpinned by higher net interest income, improved funding mix, and a stronger contribution from associates.
“Our CASA ratio stood at 32 per cent as at the first quarter (Q1) of 2025, surpassing the fiscal year 2025 (FY2025) target of 31 per cent, is a result of our continued efforts to lower the Group’s cost of funds.
“We expect the momentum in CASA growth to snowball into lower cost of funds and Net Interest Margin expansion,” he said.
The bank is also actively engaged in several strategic initiatives, including providing financing for Macrovalue’s acquisition of Cold Storage Singapore and collaborating with MUFG Bank (Malaysia) Berhad to tap into opportunities in Islamic finance, green finance, and digital transformation.
As of March 31, 2025, the bank’s gross impaired loan (GIL) ratio had improved to 1.84 per cent, down from 1.94 per cent as of Dec 31, 2024, reflecting the Group’s disciplined credit management and a healthier loan portfolio. – DayakDaily
