Kuala Lumpur: Affin Bank Bhd reported a rise in net profit for the first quarter ending March 31, 2025, reaching RM124.09 million, with revenue climbing to RM543.93 million, compared to the previous year’s performance in the same quarter.
According to BERNAMA News Agency, during the first quarter of 2024, the bank recorded a net profit of RM110.21 million and revenue of RM504.54 million. In a filing with Bursa Malaysia, the bank attributed its 1Q 2025 performance to a higher net income and an increased share of results from associates. Gross loans and financing showed a year-on-year growth of 7.1 percent, achieving a value of RM72.9 billion, compared to RM68 billion as of March 31, 2024. Customer deposits rose by 5.2 percent to RM75.5 billion, while the current account and savings account (CASA) ratio improved to 32.2 percent as of March 31, 2025, compared to 24.9 percent in the previous year.
For the outlook, Affin Bank highlighted that global tariffs by the United States could impact gross domestic product growth in the upcoming quarters if implemented, given Malaysia’s reliance on external trade. Although the domestic economy remained stable in the current quarter, there is a risk of weakening export momentum and cautious business sentiment. The banking sector remains well-capitalized and liquid, but potential pressure on profitability could arise if economic activity moderates further. The bank aims to focus on prudent risk management, disciplined cost control, and customer engagement across key segments.
Affin Bank expressed confidence in the resilience of its core franchise and plans to adapt to evolving macroeconomic conditions to support clients and sustain long-term value creation. The bank is also laying the foundation for a digital revolution to enhance customer acquisition strategies. Its deal pipeline is robust, with numerous merger and acquisition opportunities arising from capital market volatility. The focus on retail and small and medium enterprise business will be driven by payroll amounts and term investment accounts.
In a separate statement, Affin Bank president and group chief executive officer Datuk Wan Razly Abdullah noted that the 1Q 2025 performance reflects the ongoing execution of the bank’s ‘AFFIN Axelerate 2028 (AX28) Plan’. He announced the bank’s first international credit rating of ‘A3’ from Moody’s Ratings, which strengthens its credit profile and elevates its standing in global capital markets. This rating positions the bank to secure more cost-efficient US dollar funding, diversify its investor base, and unlock strategic cross-border financing opportunities to support long-term growth. The momentum in CASA growth is anticipated to lead to a lower cost of funds and an expansion of the net interest margin.