AFFIN Group recorded a Profit Before Tax after zakat of RM293.1 million for the six (6) months ended 30 June 2024 (1H2024), a decrease of 15.2% as compared to the same period last year (1H2023) of RM345.7 million, the group said this mainly due to Net Interest Margin compression.

For the second quarter, revenue was flat at RM494 million while net profit rose marginally to RM118 million from RM113 million recorded in the same quarter last year. 1H net profit slid from RM262 million to RM228 million for the current period.

Affin said the focus on strategic growth was evident in its total assets, which expanded by 7.2% to RM108.2 billion, up from RM100.9 billion in the previous corresponding period. This was driven by a 10.5% increase in loan and financing portfolios, reaching RM69.0 billion.

Datuk Wan Razly Abdullah, President & Group Chief Executive Officer of Affin Bank Berhad, announced that the Group anticipates NIM to normalise by the first half of 2025, staying the course of the AX28 Strategic Plan, with the expectation that the Federal Reserve rate will be cut by 50 – 75bps in the immediate future and improving economic conditions in Malaysia.

"The Group aims to optimise our operational cost structure and Cost of Funds while delivering innovative customer solutions to meet evolving expectations. NIM is expected to compress in the short-term as we focus on higher credit quality clients given the soft economic conditions."

In line with this outlook, he further highlighted the Group's ongoing digital transformation. "Our Digital Core is ready, pending regulatory approval for Go-Live. In the meantime, we are proceeding with Phase 2 of our Digital Core developments, which include enhancements to CASA, Deposits, and e-Wallet capabilities. Additionally, the New Mobile Banking Platform is progressing well, with a target Go-Live in December 2024, which is expected to further strengthen the Group's deposit franchise."

"We remain committed to our AX28 three key strategic pillars – Unrivalled Customer Service, Digital Leadership, and Responsible Banking with Impact. The Unrivalled Customer Service pillar has been achieved and exceeded, as evidenced by our NPS Score of +69 (according to a recent survey by IPSOS). The Group will launch AFFIN Private Banking in September 2024 to
provide another engine of expansion and evolution."

"The Group's progress on the Digital Leadership pillar is on track to be achieved by the end of 2025, providing the catalyst and platform for future growth. Additionally, the anticipated entry of the Sarawak State Shareholder, although slightly delayed, is expected to provide a quantum shift in the masterplan with access to a large number of customers and deposits/liquidity base. The Group's presence in Sarawak will be amplified by the end of 2024."