PETALING JAYA: Affin Bank Bhd
is heading into the final quarter of 2025 (4Q25) with a mixed but cautiously improving outlook, as analysts highlight both near-term margin pressure and emerging growth catalysts.
Despite trimming several targets for the financial year ending Dec 31, 2025 (FY25) due to the July overnight policy rate or OPR cut and a softer macro backdrop, research houses broadly maintain constructive views, supported by resilient asset quality, a healthy loan pipeline and its re-entry into asset management.
Affin Bank revised down its headline guidance, with management now expecting a return on equity of 4.8%, net interest margin (NIM) of 1.45%, and loan growth of 8%, compared with earlier targets of 6%, 1.55% and 12% respectively.
Kenanga Research noted these downgrades reflected “more challenging operating conditions and pressures arising from the 25-basis-point OPR cut”.
CGS International Research similarly projects weaker 4Q25 earnings, citing the “expected upturn in loan loss provision, from a net write-back in 3Q25 to a provision in 4Q25”.
Still, Affin Bank’s operating momentum showed encouraging signs. For the nine months ended September, net profit grew 10.1% year-on-year to RM412.6mil, supported by tighter cost control and strong Islamic banking income, which surged 27.3%.
Hong Leong Investment Bank Research described Affin Bank’s performance as above expectations, highlighting “a robust lending pipeline to sustain its faster loans growth trajectory” and tangible levers to lift current account-savings account and NIM in 2026. Asset quality also remains intact, which it said “suggested well-shielded asset quality from deterioration risk.”
