Affin group president and group chief executive officer Datuk Wan Razly Abdullah.
PETALING JAYA: Affin Bank Bhd
has maintained a stable earnings performance in the third quarter ended Sept 30, 2025 (3Q25), amid a changing interest rate environment.
Affin group president and group chief executive officer Datuk Wan Razly Abdullah said the recent reduction in the overnight policy rate by Bank Negara Malaysia has resulted in some net interest margin compression.
“We are actively managing through repricing and growing our current account savings account (Casa) base to mitigate the impact and support sustainable net interest income.
“Our high margin personal financing portfolio continues to expand in line with this strategy,” he said in a statement.
During the quarter under review, Affin Bank posted a net profit of RM144.99mil, as compared to RM145.82mil in the year-ago quarter.
Earnings per share dipped to 5.72 sen from 5.75 sen in the comparative quarter.
Quarterly revenue dropped to RM587.98mil from RM612.77mil in 3Q24.
For the nine-month period to Sept 30, 2025 (9M25), Affin Bank recorded a net profit of RM412.56mil, up from RM374.61mil in the same period in 2024. Revenue in 9M25 rose to RM1.75bil from RM1.61bil in the previous-year period.
Net interest income in 9M25 was RM626.4mil, up 4.3% year-on-year (y-o-y), while non-interest income decreased 5% y-o-y to RM487.6mil.
According to the bank, gross loans and financing in the nine months expanded 7.7% y-o-y to RM76.1bil.
Customer deposits increased 4.5% to RM77.3bil, while the Casa ratio dropped to 25.8% on Sept 30, 2025, from 26.9% on Sept 30, 2024.
Separately, Affin Bank said in a stock exchange filing that it had entered into a conditional share purchase agreement for the proposed acquisition of five million shares in Pheim Asset Management Sdn Bhd (Pheim AM) for RM50mil cash.
Upon the completion of the proposed acquisition, expected in the first quarter of 2026, Pheim AM will become a wholly-owned subsidiary of Affin Bank.
Pheim AM and its subsidiaries – Pheim Islamic Asset Management Sdn Bhd and Pheim Unit Trusts Bhd – are principally involved in Islamic asset management and the management of unit trust funds and sale of trust units.
As at June 30, 2025, the assets under management and administration by Pheim AM Group were about RM875.74mil.
Pheim AM is controlled by Tan Chong Koay with a 45% stake, followed by Multi-Purpose Capital Holdings Sdn Bhd with 20% equity, Lyndisfarne Holdings Limited and Azmi Malek Merican with 15% equity each, and Aizawa Securities Group Co Ltd with the remaining 5%.
According to Affin Bank, the proposed acquisition will give the opportunity for the group to develop new funds with fresh and innovative investment themes to cater to diverse investment needs of the group’s clients and complements the group’s wealth solutions.
“This includes product offerings through collaboration with leading foreign fund managers to deliver high-quality investment options that meet the diverse client’s needs.”
It said that the acquisition will enhance its competitive positioning by offering a broader range of financial products and services, as well as diverisifies its income sources.
“The proposed acquisition supports the group’s vision to become a universal bank with expansion into asset management business and improving the group’s value to clients,” it added.
