KUALA LUMPUR (Aug 15): Affin Bank Bhd’s (KL:AFFIN) net profit rose over 21% in the second quarter from a year earlier thanks to stronger interest and non-interest income.

Net profit for the three months ended June 30, 2025 (2QFY2025) totalled RM143.5 million, according to the lender in an exchange filing. Year-on-year, net interest income climbed 11% to RM212.76 million while non-interest income surged 30% to RM184.67 million.

For the remainder of the year, Affin Bank said its margin will take a “modest” short-term hit from the recent policy rate cut and loan growth may moderate amid softer economic conditions.

However, the impact will be softened by cheaper funding and improved liquidity and lower financing costs could support consumer demand for loans, Affin Bank said.

Affin Bank’s loan pipeline now totalled RM13 billion, offering “strong potential for future opportunities and cross-sell”, said its president Datuk Wan Razly Abdullah. “While some deals have been temporarily delayed due to market volatility, the underlying momentum remains strong,” he said.

For its first six months of 2025, net profit amounted to RM267.6 million, an increase of 17% when compared to the same period last year. On a year-on-year basis, net interest income grew 8.5% to RM418.8 million while non-interest income expanded 14.3% to RM324.8 million.

Total loans, advances and financing rose 7.3% to RM74.1 billion while deposits increased by 9.8% to RM78.2 billion. Affin Bank's current account-savings account, or CASA, was nearly 20% higher at RM22.1 billion.

“Affin is actively implementing a new CASA payroll strategy to reignite and sustain CASA growth,” Wan Razly said. Further, enterprise banking delivered a 15.4% increase in loans, which is expected to boost net interest margin, he said.

Gross impaired loans, or bad debts as a percentage of total loans, improved to 1.83% while loan loss coverage was 80.43%.