KUALA LUMPUR: Affin Bank Bhd
maintained a steady performance in the first quarter of its financial year as the domestic banking sector adapted to persistent global supply and demand pressured, said president and group CEO Datuk Wan Razly Abdullah in his review of the bank's results.
"Our base view is that the ongoing global conflict will persist until mid-year, after which oil prices are expected to begin
normalising. Trade and commerce are also expected to gradually return to normal in the second half of the year," he added.
Meanwhile, the group is evolving its corporate banking business into a wholesale banking model by combining corporate, treasury, and strengthened investment banking capabilities.
Wan Razly said the bank expects market volatility to give rise to deal-making opportunities that this new, enhanced business model has a strong chance to capture.
In 1QFY26, Affin Bank posted a net profit of RM135.5mil, up from RM124.09mil in the year-ago quarter.
Quarterly net income improved to RM654.44mil from RM543.93mil in the previous comparative quarter, mainly driven by net fee and commission income and net interest income (NII).
According to the bank, non-interest income jumped 32.7% to RM186mil while NII rose 13.3% to RM233.3mil.
Meanwhile, the bank's operating expense increased to RM410.6mil from RM379.1mil in the same quarter in 2025. The cost-to-income ratio improved to 62.8% from 69.7% in 1Q25.
As at March 31, 2026, the group’s total loans, advances and financing rose 12.6% year-on year to RM82.1bil.
Customer deposits increased 3.5% to RM78.1bil
Current account and savings account (Casa) rose 5.8% quarter-on-quarter to RM21.2bil, while the Casa ratio stood at 27.11% as at March 31, 2026, compared with 32.21% as at March 31, 2025.
