During Q1 2024, Affin Bank’s net profit was RM110.21 million, and revenue amounted to RM504.54 million.
In a filing with Bursa Malaysia today, it said the performance in Q1 2025 was primarily due to a higher net income and a higher share of results from associates.
“The gross loans and financing marked a year-on-year growth of 7.1%, achieving a value of RM72.9 billion, compared to RM68 billion as of March 31, 2024.
“Customer deposits increased by 5.2% to RM75.5 billion, while current account and savings account (CASA) ratio continued to improve significantly to 32.2% as of March 31, 2025, as compared to 24.9% as of March 31, 2024,” it said.
As for the outlook, Affin Bank said the global tariffs by the US are expected to exert a dampening effect on gross domestic product growth in the upcoming quarters if implemented, as Malaysia remains heavily reliant on external trade.
“While the domestic economy remained broadly stable in the current quarter, there is a risk of softening in export momentum and a more cautious sentiment among businesses.
“The banking sector remains well-capitalised and liquid, but may face potential pressure on profitability should economic activity moderate further,” it said, adding that the bank will continue to focus on prudent risk management, disciplined cost control, and customer engagement across key segments.
Furthermore, Affin Bank remains confident in the resilience of its core franchise and will adapt to evolving macroeconomic conditions to support clients and sustain long-term value creation while also building the foundation for the digital revolution to increase further customer acquisition strategy.
“Our deal pipeline remains robust with many merger and acquisition opportunities from volatility in capital markets.
“Our focus on retail and small and medium-sized enterprise business will be driven by payroll amounts and term investment accounts,” it said.
In a separate statement, Affin Bank president and group CEO Wan Razly Abdullah said its Q1 2025 performance reflects continued execution of the bank’s “AFFIN Axelerate 2028 (AX28) Plan”.
“We are delighted to announce that our first international credit rating of ‘A3’ from Moody’s Ratings strengthens our credit profile and elevates the group’s standing in global capital markets.
“It positions us to secure more cost-efficient US dollar funding, diversify our investor base, and unlock strategic cross-border financing opportunities that support our long-term growth trajectory,” he said.
He said the momentum in CASA growth is expected to snowball into lower cost of funds and net interest margin expansion.