KUALA LUMPUR: Affin Bank Bhd
recorded a lower net profit of RM127.52mil in the second quarter ended June 30, 2026, as compared to RM143.49mil in the year-ago quarter due to a higher allowance for impairment losses and a lower share of results of associates.
Quarterly revenue rose 5% year-on-year to RM647.21mil as compared to RM616.3mil in the same quarter in 2025.
For the cumulative period to June 30, 2026, the group posted a net profit of RM263.02mil, down from RM267.57mil in the year-ago period.
First-half revenue rose 12.2% to RM1.3bil from RM1.16bil previously, mainly driven by higher net fee and commission income and net interest income.
According to the bank, net interest income for the period rose 11.9% y-o-y to RM49.7mil, while non-interest income for the six-month period rose 7.3% y-o-y to RM348.7mil.
In the Islamic banking segment, Affin islamic Bank Bhd's pre-tax profit dropped 27.8% to RM133.9mil, driven by a higher allowance for impairment losses and higher operating expense.
Group operating expenses increased 2.6%. Operating profit before allowances rose 33.5% y-o-y to RM481.9mil.
Gross loans, advances and financing increased 13.6% y-o-y to RM84.1bil, while customer deposits grew 3% to RM81.1 bil.
The current account and savings account (Casa) ratio dropped to 26.7% as at June 30, 2206, as compared to 28.2% a year earlier.
In a statement, Affin Group president and group CEO Datuk Wan Razly Abdullah said the deposit pipeline remains strong, supported by healthy new payroll onboarding opportunities.
"New deposit customers continue to show strong prospects, with Term Investment Account (TIA) growing by RM1.37bil, or 118%, in 1H26.
"The adoption of the new Basel III requirements for credit risk in December 2026 is expected to enhance the group’s capital position by 30 basis points,” he added.
