PETALING JAYA: Affin Group reported profit before tax (PBT) of RM180.9 million for the first quarter ended March 31, 2026 (Q1’26), an increase of RM2.7 million or 1.5% compared to RM178.2 million in the previous year’s corresponding.
The increase in PBT was primarily attributed to higher net income by RM110.5 million, partially offset by higher operating expense by RM31.6 million, higher allowance for impairment losses of RM60.2 million and lower share of results from associates of RM16 million.
Gross loans and financing marked a year-on-year growth of 12.6%, achieving a value of RM82.1 billion, compared to RM72.9 billion as at March 31, 2025. Customer deposits increased by 3.5% to RM78.1 billion. The group’s total asset base expanded to RM125.7 billion, driven primarily by this continued growth in the loan and financing portfolio.
President and group CEO Datuk Wan Razly Abdullah said, “Affin Group’s first-quarter performance remained steady, demonstrating resilience as the domestic banking sector adapts to persistent global supply and demand pressures. Our base view is that the ongoing global conflict will persist until mid-year, after which oil prices are expected to begin normalising. Trade and commerce are also expected to gradually return to normal in the second half of the year.”
He added that the issuance of RM500 million AT1CS (Additional Tier 1 Capital Securities) in May received strong investor interest and was two times oversubscribed. This Tier-1 capital will strengthen the group’s capital position and improve its total capital ratio by 50 basis points. a prudent move given the current global uncertainty.
“The group is evolving its corporate banking business into a wholesale banking model by combining corporate, treasury, and strengthened investment banking capabilities. We expect market volatility to give rise to deal-making opportunities that this new, enhanced business model has a strong chance to capture,” Wan Razly said, adding they are increasing their monitoring of customers who may be affected by the ongoing conflict in the Middle East.
To cushion this impact, he said, Affin has introduced support for Bank Negara Malaysia’s SME Stabilisation Relief Facility, an RM5 billion financing facility that provides financing of up to RM750,000 to SMEs.
“Pheim Asset Management was officially acquired on April 22, 2026 (soon to be renamed Affin Pheim Asset Management). The new business will be strengthened by new talent, technology, products, collaboration with global partners, and synergies with the group,” said Wan Razly.
