By DayakDaily Team
KUCHING, Aug 24: The anticipated entry of Sarawak as a shareholder in Affin Group, though slightly delayed, is expected to bring a significant transformation to the Group’s strategic blueprint, granting access to an expanded customer base and enhanced liquidity.
Datuk Wan Razly Abdullah, president and Group chief executive officer of Affin Bank Berhad, emphasised that the Group’s presence in Sarawak is set to grow substantially by the end of 2024.
In a media release yesterday (Aug 23), Affin Group reported a profit before tax (PBT) after zakat of RM293.1 million for the first half of 2024 (1H2024), reflecting a 15.2 per cent decline from RM345.7 million in the same period last year. This decrease was primarily attributed to the compression of the Net Interest Margin (NIM).
Despite the challenges, the Group’s commitment to strategic growth is evident, with total assets increasing by 7.2 per cent to RM108.2 billion, up from RM100.9 billion in the corresponding period last year. This growth was driven by a 10.5 per cent rise in loan and financing portfolios, which reached RM69.0 billion.
Wan Razly noted that the Group expects NIM to stabilise by the first half of 2025, in line with their AX28 Strategic Plan, with the expectation that the Federal Reserve rate will be cut by 50-75bps in the immediate future and improving economic conditions in Malaysia.
“Our focus remains on optimising operational cost structure and Cost of Funds while delivering innovative customer solutions to meet evolving expectations. Although NIM is expected to compress in the short-term as we focus on higher credit quality clients given the soft economic conditions,” he said.
Wan Razly also highlighted the Group’s ongoing digital transformation as its Digital Core is now ready and while awaiting regulatory approval for Go-Live, the Group is moving forward with Phase 2 of its Digital Core developments, which will include enhancements to CASA, Deposits, and e-Wallet capabilities.
He further noted that the New Mobile Banking Platform is progressing well and is slated for a December 2024 Go-Live, which is expected to further bolster the Group’s deposit franchise.
“We remain committed to our AX28 three key strategic pillars – Unrivalled Customer Service, Digital Leadership, and Responsible Banking with Impact. The Unrivalled Customer Service pillar has been achieved and exceeded, as evidenced by our NPS Score of +69 (according to a recent survey by IPSOS),” he added.
Looking ahead, the Group plans to launch Affin Private Banking in September 2024, adding a new engine for growth and evolution.
Additionally, the Group’s progress on the Digital Leadership pillar is also on track to be achieved by the end of 2025, providing the catalyst and platform for future growth.
The Group’s achievements have been recognised with several prestigious awards, underscoring its commitment to excellence in banking and finance. Among these accolades, Affin Bank was named ‘Malaysia Domestic Cash Management Bank of the Year for AFFINMAX’ by the Asian Banking & Finance Wholesale Banking Awards 2024.
Additionally, Affin Islamic Bank Berhad received the Best Retail Bank in Malaysia and Best Syndicated Loan in Renewable Energy awards from The Asset Triple A Islamic Finance Awards 2024, while Affin Hwang Investment Bank Berhad was honoured with the Best Sustainability Sukuk – Healthcare award by The Asset Triple A Islamic Finance Awards 2024. — DayakDaily
