KUALA LUMPUR (April 3): Bank Negara Malaysia (BNM), via a letter dated April 2, has approved Affin Bank Bhd’s (KL:AFFIN) proposed acquisition of 100% of Pheim Asset Management Sdn Bhd for RM50 million in cash.

According to Affin’s bourse filing, the approval is conditional upon the bank conducting post-completion reviews of certain operational processes at Pheim, including an independent external review prior to system integration. 

As at June 30, 2025, Pheim managed assets of about RM876 million. For the financial year ended Dec 31, 2024, it reported a profit after tax of RM1.58 million, net assets of RM25.61 million, and RM21.60 million in cash and fixed deposits.

Affin Bank has previously indicated plans to rapidly scale assets under management (AUM) following the acquisition. Sources told The Edge the bank could reach its RM6 billion target well before 2030. 

It was mentioned that Affin aims to tap funds from the Sarawak Sovereign Wealth Future Fund, external investment managers, and high-net-worth clients from its premium and private banking segments. The bank itself may also deploy treasury money into the fund’s fixed income investments.

The RM50 million purchase price implies a price-to-AUM ratio of 5.7%, higher than the 3.08% valuation in Affin’s 2022 sale of Affin Hwang Asset Management to CVC Capital Partners. The deal also reflects a price-to-book value of two times and a price-earnings multiple of about 30 times.

Affin Bank exited the asset management industry in July 2022 when it sold its 63% stake in Affin Hwang Asset Management for RM1.42 billion. 

Analysts estimate that every RM1 billion in AUM could generate RM2 million to RM2.5 million in fee income. 

Shares in Affin Bank closed down one sen, or 0.4%, at RM2.45 on Friday, giving the bank a market capitalisation of RM6.21 billion. The stock has fallen 6.8% over the past year.