KUALA LUMPUR (May 7): Affin Group received its first international credit rating in its 50-year history, A3 from Moody’s Ratings, reflecting strong finances, solid asset quality, and healthy capital, according to a statement.
The Sarawak government currently holds a 31.25% equity stake in the bank.
Moody’s highlighted Affin’s low bad loan ratio of 1.9%, strong capital ratio of 14.5%, and stable funding supported by growing current account savings account (CASA) deposits.
The group is seen to have limited exposure to high-risk sectors but some market risk from currency and trading activities.
Affin in the statement said the rating boosts its credibility and global market reach, placing it among Malaysia’s top-rated banks.
Affin Bank Bhd's (KL:AFFIN) president and group chief executive officer, Datuk Wan Razly Abdullah, described the rating as a historic first for Affin and a proud achievement in its five-decade journey.
He emphasised that this strong rating enhances Affin’s global standing, particularly among international investors in trade finance, correspondent banking, and the US dollar capital markets.
Furthermore, this recognition is said to reinforce the strength of the Axelerate 2028 (AX28) Plan, which is built on three strategic pillars: unrivalled customer service, digital leadership, and responsible banking with impact.
“These principles continue to guide Affin’s transformation, enabling the group to deliver exceptional customer experiences, embrace cutting-edge digital innovation, and champion sustainable banking practices that create meaningful value for communities and the environment,” he added.
For the financial year ended Dec 31, 2024 (FY2024), Affin recorded a profit before tax after zakat of RM701.0 million, marking a 35.3% increase from RM518.3 million in FY2023.
The group’s total loans and financing grew 8.1% year-on-year to RM72.0 billion, compared with RM66.7 billion in the previous year. Total assets stood at RM111.8 billion as of end-2024.