KUALA LUMPUR (May 18): Affin Bank Bhd (KL:AFFIN) reported that its net profit grew 9% in the first quarter from a year earlier driven by a surge in non-interest income and higher interest income.

Net profit for the three months ended March 31, 2026 (1QFY2026) was RM135.5 million versus RM124.09 million in the same period a year earlier, according to its bourse filing. Year-on-year, net interest income was up 13%.

Non-interest income rose nearly 33% as service charges and fees, in particular, tripled during the quarter.

Going forward, however, Affin said it will pay more attention to managing asset quality and flagged the potential for elevated impairments if macroeconomic conditions weaken further.

There is a need to “maintain a cautious and disciplined approach” even with adequate capital and liquidity buffers, Affin said. “This includes prudent underwriting standards, closer portfolio monitoring and a heightened focus on early identification of emerging risks,” it noted.

No dividend was declared for the quarter.

Total loans, advances and financing rose 12.6% year-on-year while customer deposits expanded 3.5%. The net interest margin — which measures the difference between the interest earned on loans and the interest paid out to depositors — improved six basis points to 1.54%.

“Our base view is that the ongoing global conflict will persist until mid-year, after which oil prices are expected to begin normalising,” said Affin group chief executive officer Datuk Wan Razly Abdullah. “Trade and commerce are also expected to gradually return to normal in the second half of the year.”