Affin Bank president and group CEO Datuk Wan Razly Abdullah
KUALA LUMPUR: Affin Bank Bhd
remains committed to its AX28 Transformation Plan, aiming to drive profitability through loan and financing growth, as well as expanding its current account base.
The bank, in a filing with Bursa Malaysia, said its strategy would continue to be guided by its focus on unrivalled customer service, digital leadership, and responsible banking with impact.
Affin noted that the anticipated economic expansion presents growth opportunities for the banking sector, driven by rising demand for loans, financing, and financial services.
“While deposit competition may lead to margin compression, this impact is anticipated to be offset by higher credit growth and improved asset quality. Malaysian banks remain well-capitalised, supported by adequate impairment buffers to cushion against moderate credit stress,” it said.
In the fourth quarter ended Dec 31, Affin’s net profit more than tripled to RM135.1mil, or earnings per share of 5.63 sen RM39.5mil, or 1.72 sen in the year-ago quarter.
Revenue for the quarter rose 14.7% to RM557.7mil from RM486.2mil.
For the financial year ended Dec 31, 2024 (FY24), the bank posted a net profit of RM509.7mil, up 26.7% from RM402.2mil while revenue climbed 9.3% to RM2.2bil against RM1.9bil in FY23.
Its net interest income (NII) was recorded at RM826.4mil, an increase of RM43.5mil or 5.6% as compared to the previous financial period of RM782.9mil.
Affin’s non-interest income for the period under review was RM652.2mil, an increase of RM44.9mil or 7.4% from RM607.3mil registered in the previous corresponding period.
For FY24, the gross impaired loan (GIL) ratio for the group stood at 1.94% as compared to 1.90% in FY23.
Affin’s total loans, advances and financing grew by 8.1% YoY to RM72bil in FY24, mainly contributed by the 10.8% growth in the community banking segment, with the corporate banking and enterprise banking segments growing by 3.4% and 3.1%, respectively. Housing Loans grew by 8.4%, whilst auto finance loans rose by 6.7%.
On the deposits, the group’s customer deposits increased by 4.1% YoY to RM73.7bil. CASA (Current Account/Savings Account) was recorded at RM22.4bil and the CASA ratio stood at 30.4% for the period ended Dec 31, 2024.
For FY24, the group’s total capital ratio was at 17.06%, Tier 1 capital ratio at 14.64% and Common Equity Tier 1 (CET1) capital ratio at 13.22%. The liquidity coverage ratio remains healthy at 165.18%, well above the regulatory requirement of 100%
“Affin Group continues to strengthen its foundation for long-term, sustainable growth. Our results reflect the disciplined execution of the AFFIN Axelerate 2028 (AX28) Plan, built on three pillars namely unrivalled customer service, digital leadership, and responsible banking with impact,” president and group chief executive officer Datuk Wan Razly Abdullah said in a separate statement.
“The group implemented an early retirement scheme in 4Q24, amounting to a cost of RM48.5mil. Excluding this one-off cost, this would have enhanced the business-as-usual pretax profit to RM749.5mil, an increase of 44.6% year-on-year (YoY),” he said, adding that the profit would be reinvested in the business to further grow the balance sheet and enhance the group’s digital capabilities.
“The group’s efforts to improve net interest margin (NIM) are showing early results, with CASA breaching our 30% target. This is a significant milestone in strengthening our funding base.
“At the same time, we are advancing our digital transformation journey with the introduction of our new digital core and mobile app, launching in 1Q25, which will catapult the group’s growth in 2025,” Wan Razly said.
He also announced that the bank proposed a bonus Issue of one new share for every 18 existing shares held to reward its shareholders.
