KUALA LUMPUR (May 19): Affin Bank Bhd (KL:AFFIN) reported a 12.6% jump in net profit for the first quarter ended March 31, 2025, on higher net income of RM39.4 million and share of results from its associates of RM21 million.

The banking group reported a net profit of RM124.1 million for the quarter, compared with RM110.2 million for 1QFY2024.

Net interest income increased by 6.4% to RM206.0 million, while non-interest income for the period was RM140.1 million, down 1.7% from the year before. Realised foreign exchange gains of almost RM75 million helped supplement net income.

In a statement on Monday, the bank said its gross loans and financing grew 7.1% year-on-year to RM72.9 billion, compared with RM68.0 billion the year before. Meanwhile, customer deposits rose 5.2% to RM75.5 billion, and the current account and savings account (Casa) ratio improved to 32.2%, up from 24.9% a year ago.

President and group chief executive officer Datuk Wan Razly Abdullah said that in 1QFY2025, the group saw strong growth, with a 23.7% rise in profit before tax to RM178.2 million, driven by higher net interest income and a better funding mix. 

He added that despite global challenges, the group kept costs and credit under control. Its Casa ratio reached 32%, exceeding the FY2025 target, which will help reduce funding costs.

Wan Razly added that the group is also involved in key deals, including financing Macrovalue’s acquisition of Cold Storage Singapore, and partnering with MUFG Bank to explore opportunities in Islamic finance, green finance, and digital transformation.

As of March 31, 2025, the group's gross impaired loan ratio had improved to 1.84%, down from 1.94% on Dec 31, 2024. It said this reflects the group's strong credit management and healthier loan portfolio, highlighting its commitment to maintaining good asset quality despite a tough environment.