PETALING JAYA: Affin Bank Bhd posted a net profit of RM127.52 million for second quarter ended June 30, 2026 (Q2’27), a decrease of 11.13% from RM143.48 million in the corresponding quarter last year.
Net profit for the six-month period of FY27 (6M’27) decreased 1.7% to RM263.01 million from RM267.57 million in the corresponding half of FY26.
In a filing to Bursa Malaysia, Affin Bank said revenue for the quarter increased 5.01% to RM647.21 million from RM616.30 million in Q2’26, while revenue for the six-month period increased 12.19% to RM1.30 billion from RM1.16 billion, supported by higher net interest income and net fee and commission income.
Profit before tax (PBT) stood at RM346.1 million in 6M’27, a decrease of RM11.9 million or 3.3% compared to RM358.0 million recorded in 6M’26.
With operating expenses increasing by 2.6%, operating profit before allowances rose 33.5% YoY to RM481.9 million.
Gross loans, advances and financing increased 13.6% year-on-year (YoY) to RM84.1 billion, while customer deposits grew 3% to RM81.1 billion.
Total assets stood at RM129.4 billion, 10.6% higher than a year earlier.
Affin Bank’s net interest income (NII) was RM468.5 million, an increase of RM49.7 million, or 11.9%, from RM418.8 million in Q2 FY26.
For the first six months of FY27, Affin Islamic Bank Bhd’s PBT decreased 27.8% to RM133.9 million compared to RM185.4 million in FY26. The decrease in PBT was primarily driven by a higher allowance for impairment losses of RM68.2 million and a higher operating expenses of RM27 million, partially offset by a higher net income of RM43.7 million.
Non-interest income for 6M;27 was RM348.7 million, an increase of RM23.9 million or 7.3% from RM324.8 million registered in the same period of FY26.
For 6M’27, Affin Bank recorded net income of RM1.3 billion, compared with RM1.16 billion for 6M’26, an increase of RM141.4 million, or 12.2%, mainly driven by higher net fee and commission income and NII.
Operating expenses increased slightly to RM819.7 million for 6M’27 compared to RM799.1 million in the previous year.
The cost-to-income ratio for the period was 63%, down from 68.9% over 6M’26.
As of June 30, 2026, Affin Bank’s gross impaired loan ratio improved marginally to 1.82% from 1.83% as of June 30, 2025.
Affin Bank’s loan loss coverage and loan loss reserve stood at 71.16% and 116.80%, respectively, providing the group with robust credit risk buffers and ensuring Affin Group remains well positioned to absorb credit risks and safeguard asset quality.
Further, Affin Bank’s total loans, advances and financing rose 13.6% year-on-year to RM84.1 billion as of June 30, 2026, mainly driven by a 17.3% increase in the enterprise banking segment, a 9.8% increase in the community banking segment, and a 22.4% increase in the corporate banking segment.
Housing loans grew by 7.5%, and auto finance loans increased by 4.3%.
The group’s customer deposits increased by 3% YoY to RM81.1 billion.
Current accounts and savings accounts (Casa) rose by 2.2% quarter-on-quarter to RM21.6 billion, while the Casa ratio dropped to 26.69% as of June 30, 2026, compared to 28.21% at June 30, 2025.
The group’s total capital ratio was at 17.05% as of June 30, 2026, while the Tier-1 capital ratio was at 14.58%, and the Common Equity Tier 1 capital ratio was at 12.62%.
The Liquidity Coverage Ratio stood at a healthy 152.3%, well above the regulatory requirement of 100%.
Affin Group president and group CEO Datuk Wan Razly Abdullah said the US-Iran conflict has extended beyond the earlier ceasefire expectations, intensifying cost-of-living pressures in Malaysia and placing greater strain on consumer sentiment and spending.
In response, the group has further tightened its underwriting standards.
“The group has issued an additional RM400 million in AT1CS in July, strengthening the group’s capital position and improving its total capital ratio by 40 basis points. This provides an additional capital resilience amid the current global uncertainties,“ he said.
Wan Razly said Affin Group’s digital leadership journey continues with the launch of its new retail internet banking platform on Aug 6, designed to deliver a more intuitive, seamless and engaging banking experience.
“This momentum will continue with the planned launch of our e-wallet platform in Q3 2026, followed by further innovative digital products and solutions in Q4 2026.
“Deposit pipeline remains strong, supported by healthy new payroll onboarding opportunities.
“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,” Wan Razly said.
