Kuala Lumpur: AFFIN Group (“AFFIN” or “the Group”) recorded a Profit Before Tax (PBT) after zakat of RM540.1 million for the financial period ended 30 September 2025 (9M2025), representing an increase of RM45.4 million or 9.2% compared to RM494.7 million recorded in the previous corresponding period.
The increase in PBT was primarily attributed to a higher net income by RM136.1 million, partially offset by an allowance for impairment losses by RM14.8 million, compared to a write-back of impairment losses of RM69.5 million in the previous corresponding period.
The gross loans and financing marked a year-on-year growth of 7.7%, achieving a value of RM76.1 billion, as compared to RM70.1 billion for the corresponding period ended 30 September 2024.
Customer deposits increased by 4.5% to RM77.3 billion, while the Current Account and Savings Account (CASA) ratio dropped to 25.8% as of 30 September 2025, as compared to 26.9% as of 30 September 2024.
Datuk Wan Razly Abdullah, President & Group Chief Executive Officer of AFFIN Group, commented, “Our third quarter performance reflects disciplined execution in a changing interest rate environment.
While the recent OPR reduction has resulted in some Net Interest Margin compression, we are actively managing through repricing and growing our CASA base to mitigate the impact and support sustainable net interest income.
Our high margin personal financing portfolio continues to expand in line with this strategy.” “The recent launch of the Selangor and Sabah Visa Debit Cards reflects the Group’s strategy to tap regional market opportunities through localised product offerings.
Payroll account initiatives further underpin this strategy by anchoring salary relationships and driving sticky CASA balances.
Our new FINTURA youth banking segment supports CASA growth by attracting younger customers early, strengthening deposit inflows and building deeper engagement at every life stage.”
“Fee based income continued to expand, driven by stronger demand for our new wealth and investment solutions, including Islamic Structured Investment Product (“ISP”) offerings, which provide value-add to our customers and diversify our revenue base.”
“On the operational excellence front, we have upgraded our treasury and risk management platform to FIS Treasury and Risk Manager – Quantum Edition across all three banking entities, giving us real time visibility over cash and liquidity, integrated front to back workflows and stronger risk and control capabilities.
This supports our ongoing improvements and more data-driven balance sheet decisions. This achievement has also been recognised with an Operational Excellence Award in acknowledgment of the significant process enhancements delivered.
The Group also completed an upgrade of its AML system in July 2025, further strengthening its compliance framework and transaction monitoring controls.” “Our business pipeline across key segments remains healthy and we are growing with discipline.
We continue to closely monitor asset quality, especially in the SME segment, and apply proactive credit risk management and prudent provisioning in line with both the current GDP environment and the more moderate growth outlook expected next year.”
“As part of the Group’s transformation journey, we have entered into a Share Purchase Agreement to acquire Pheim Asset Management Sdn. Bhd. This acquisition will enable us to develop new funds with differentiated investment themes, complement our existing private banking and wealth business.
It also broadens our suite of asset management, portfolio management and advisory solutions for our clients. This move supports our long-term vision and strategy to build a more comprehensive universal banking franchise,” concluded Datuk Wan Razly Abdullah.
Net Interest Income
Net interest income (NII) recorded RM626.4 million, an increase of RM25.7 million or 4.3% as compared to the previous corresponding period of RM600.7 million.
Islamic Banking
For the nine months ended 30 September 2025, Affin Islamic Bank Berhad’s PBT rose 55.3% to RM314.8 million from RM202.7 million a year earlier. The increase was driven by RM129.2 million growth in net financing income, partly offset by RM46.7 million higher operating expenses and RM28.7 million more in impairment losses.
Non-Interest Income
Non-interest income for the period under review was RM487.6 million, a decrease of 5.0% or RM25.7 million from RM513.3 million registered in the previous corresponding period.
Asset Quality
As of 30 September 2025, the Group’s Gross Impaired Loan ratio stood at 1.87%, compared to 1.74% a year earlier, reflecting stable asset quality amid a more challenging operating landscape.
Loan Loss Coverage (LLC) and Loan Loss Reserve (LLR)
The Group’s LLC and LLR stood at 71.68% and 117.95% respectively, providing the Group with robust credit risk buffers, ensuring AFFIN Group remains well positioned to absorb credit risks and safeguard asset quality.
Operating Expenses
Operating expenses increased slightly to RM1.24 billion for the quarter ended 30 September 2025 as compared to RM1.20 billion in the same quarter of the previous year. The Cost-to-Income ratio for the period under review was 70.9%, a decrease from 74.6% recorded in the previous corresponding period.
The Group continues to drive cost-efficiency through targeted initiatives, such as optimising costs and enhancing workforce productivity across the organisation.
Loans and Deposits Growth
As of 30 September 2025, the Group’s total loans, advances and financing rose 7.7% year-onyear to RM76.1 billion. The growth was mainly driven by a 13.4% rise in the Enterprise Banking segment and a 10.0% increase in the Community Banking segment, while the Corporate Banking segment declined by 0.6%.
Housing loans grew by 7.0%, and Auto Finance loans increased by 5.1%. On the deposits, the Group’s customer deposits increased by 4.5% YoY to RM77.3 billion. CASA rose 0.2% year-on-year to RM19.9 billion, with the CASA ratio decrease 1.11% to 25.8% as of 30 September 2025, compared to 26.9% as of 30 September 2024.
Capital Adequacy Ratios and Liquidity
As of the end of the financial period on 30 September 2025, the CET 1 Capital Ratio, Tier 1 Capital Ratio and Total Capital Ratio stood at 13.5%, 14.9% and 17.2%, respectively. The Liquidity Coverage Ratio stood at 162.5%, above the regulatory requirement of 100%.
