Affin Group achieves FY25 PBT of RM755.7 mln as net income reaches all time high

KUCHING (Feb 26): Affin Group Bhd posted a profit before tax (PBT) of RM755.7 million for the financial year ended Dec 31, 2025 (FY25), up 7.8 per cent from RM701.0 million recorded a year earlier.

The group attributed the improvement to higher net income of RM271.8 million, partly offset by an increase in operating expenses of RM33.9 million and an allowance for impairment losses of RM31.2 million.

This compares with a write-back of impairment losses amounting to RM151.4 million in the previous financial year.

President and group chief executive officer Datuk Wan Razly Abdullah said the performance was supported by the group’s highest-ever net income and a 47.4 per cent surge in operating profit.

“This performance was further bolstered by our continuous asset quality efforts, which have driven the Gross Impaired Loan (GIL) ratio to an all-time low of 1.64 per cent.

“Together with our robust capital and liquidity position, this provides a solid platform to capture opportunities in 2026, strengthen earnings quality and build long-term shareholder value,” he said in a statement on Thursday.

The board has proposed a single-tier final dividend of 8.53 sen per share, amounting to RM216 million, in respect of FY2025, based on the group’s issued share capital of 2.54 billion ordinary shares as at Dec 31, 2025.

For the fourth quarter ended Dec 31, 2025 (4Q2025), PBT rose 18.4 per cent quarter-on-quarter (QoQ) to RM215.6 million, drive by net interest margin expansion and a 30.5 per cent rise in fee-based income from foreign exchange activities, fees and commissions.

Wan Razly described the quarter as the group’s highest under its Metamorphosis Transformation Plan. Total assets expanded to RM124.1 billion, supported by loans and financing growth of 10.4 per cent year-on-year (YoY) to RM79.5 billion.

Net interest income (NII) increased 5.9 per cent to RM874.8 million, compared with RM826.4 million in the previous financial year.

Meanwhile, Affin Islamic Bank Bhd recorded a 39.1 per cent jump in PBT to RM449.7 million from RM323.3 million a year ago. The growth was mainly due to higher net income of RM160.8 million and a larger write-back of impairment losses amounting to RM34.4 million, partially offset by a RM69.2 million rise in operating expenses.

At the group level, net income reached a record RM2.44 billion in FY2025, up 12.5 per cent from RM2.17 billion in FY2024. The increase was driven by stronger Islamic banking income, gains on financial instruments and higher NII.

Operating expenses edged up to RM1.70 billion from RM1.67 billion previously. Despite this, the cost-to-income ratio improved to 69.7 per cent from 76.9 per cent a year earlier.

On 2026 outlook, Wan Razly said Malaysia’s economy is expected to remain resilient, supported by steady growth in the domestic manufacturing sector and an accommodative monetary policy by the central bank.

“Malaysia’s outlook remains constructive, with real GDP growth broadly forecast in the 4 to 4.5 per cent range, underpinned by resilient domestic demand, sustained investment activity, and firmer external trade flows.

“On the global front, easing inflation supports consumption spending and economic activity, while geopolitical risks and uneven regional conditions remain key considerations for banks,” he said.