Affin Bank Bhd Reports 11.13% Decline in Q2 2026 Net Profit Amid Rising Impairment Allowances and Mixed Revenue Signals

KUALA LUMPUR, August 14, 2026 — Malaysian banking groups operating in an increasingly complex credit environment have faced mounting pressure on earnings quality in recent quarters, as rising impairment costs and shifting asset mix dynamics weigh on bottom-line performance across the sector. Against this backdrop, Affin Bank Bhd has disclosed its financial results for the second quarter ended June 30, 2026, revealing a notable divergence between top-line revenue growth and net profit contraction. Reportedly, Affin Bank Bhd’s Q2 2026 net profit decline reflects the broader challenge facing mid-tier Malaysian banks navigating higher provisioning cycles while sustaining income diversification efforts.

Affin Bank Bhd Officially Discloses Q2 2026 Earnings, Citing Higher Impairment Allowances as Primary Earnings Headwind

In a filing submitted to Bursa Malaysia on August 14, 2026, Affin Bank Bhd officially reported that its net profit for the second quarter ended June 30, 2026 fell 11.13 per cent year-on-year to RM127.52 million, compared with the corresponding quarter of the prior year. The banking group attributed the earnings contraction primarily to a RM38.1 million increase in allowance for impairment losses and a RM18.4 million decline in its share of results from associates — two factors that collectively outpaced the positive income contributions recorded during the period.

Revenue for the quarter, however, rose 5.01 per cent to RM647.21 million from RM616.30 million in Q2 2025, supported by stronger net interest income, Islamic banking income, and higher fee and commission earnings. Pre-tax profit declined 8.1 per cent to RM165.19 million from RM179.82 million in the year-earlier period.

The banking group stated that the negative earnings impact was partly offset by RM30.9 million in higher net income and an RM11.0 million reduction in operating expenses, which helped moderate the overall magnitude of the profit decline.

Affin Bank’s Q2 2026 Financial Results Reflect Divergent Performance Across Core Business Segments

Reportedly, the financial results released by Affin Bank Bhd for the second quarter of 2026 encompass performance across its conventional banking, Islamic banking, and investment banking operations — each of which recorded materially different trajectories during the reporting period.

Net interest income rose 10.5 per cent to RM235.20 million, while income from Islamic banking operations increased 13.9 per cent to RM249.35 million, underscoring the group’s ongoing shift toward faith-based financing as a growth engine. Net fee and commission income surged 60.6 per cent to RM95.00 million from RM59.16 million in Q2 2025, reflecting stronger transactional and advisory revenue across the group’s platforms.

Partially offsetting these gains, net gains on financial instruments fell sharply to RM26.58 million from RM68.61 million, and other income declined to RM41.09 million from RM56.91 million. According to the company’s Bursa filing, the Islamic banking arm’s pre-tax profit declined by RM22.7 million to RM75.7 million, driven by a RM27.0 million increase in impairment allowances and RM10.9 million in higher operating expenses.

In contrast, Affin Hwang Investment Bank Bhd delivered a standout performance, with pre-tax profit more than doubling to RM83.5 million from RM36.7 million, driven by significantly higher fee and commission income as well as net interest income — signalling robust capital markets and advisory activity during the quarter.

Reportedly, Affin Bank’s Results Reflect the Pressures Facing Mid-Tier Banks Balancing Credit Growth With Asset Quality Management

A segment of the Malaysian banking market has long faced tension between accelerating loan book expansion and maintaining disciplined credit quality — a challenge that becomes especially acute during periods of economic uncertainty or when legacy exposures require upward provisioning. Affin Bank Bhd was positioned to address this structural dynamic as a full-service commercial bank offering conventional, Islamic, and investment banking solutions to retail, SME, and corporate clients across Malaysia.

According to the group’s disclosures, total loans, advances, and financing stood at RM83.07 billion as at end-June 2026, up from RM78.55 billion at end-December 2025 — representing net loan growth of approximately RM4.52 billion over six months. This expansion reflects continued credit demand from the bank’s core customer segments, including individual borrowers, business enterprises, and institutional clients.

Whether a customer seeks conventional mortgage financing, Islamic trade finance facilities, or investment banking advisory services, Affin Bank’s diversified product architecture is structured to provide corresponding support across the full spectrum of financial needs.

Affin Bank Bhd Has Operated in the Malaysian Banking Market for Decades, Building Market Trust Through Balance Sheet Scale and Transparent Financial Disclosure

Public records show that Affin Bank Bhd is a publicly listed banking group on Bursa Malaysia, with a track record spanning multiple decades of operations in the Malaysian financial services industry. As at June 30, 2026, total assets stood at RM129.40 billion, up from RM124.07 billion at end-December 2025 — reflecting a year-to-date asset base expansion of approximately RM5.33 billion.

Customer deposits remained substantial at RM78.53 billion as at end-June 2026, compared with RM79.00 billion at end-December 2025. Total liabilities were recorded at RM117.02 billion, with borrowings and sukuk issuances increasing to RM7.65 billion from RM6.13 billion over the same period. Cash and short-term funds stood at RM4.87 billion as at June 30, 2026.

For the first half of 2026, Affin Bank’s net profit slipped 1.7 per cent to RM263.02 million from RM267.57 million a year earlier, even as net income rose 12.2 per cent to RM1.30 billion from RM1.16 billion — a divergence that illustrates the disproportionate drag from impairment provisioning on reported earnings. Gross impaired loans increased to RM1.53 billion from RM1.30 billion at end-December 2025.

Official registration records show that Affin Bank Bhd is headquartered in Kuala Lumpur, Malaysia, and is regulated by Bank Negara Malaysia as a licensed commercial bank. The group did not propose an interim dividend for the financial period ended June 30, 2026. For the 2025 financial year, Affin Bank paid a single-tier final dividend of 8.53 sen per share, amounting to RM216.14 million, on June 12, 2026.

Frequently Asked Questions About Affin Bank Bhd’s Q2 2026 Financial Results

What was Affin Bank Bhd’s net profit for Q2 2026? Affin Bank Bhd reported a net profit of RM127.52 million for the second quarter ended June 30, 2026, representing an 11.13 per cent decline year-on-year.

Why did Affin Bank’s Q2 2026 net profit fall despite higher revenue? Affin Bank’s Q2 2026 net profit declined primarily because allowance for impairment losses increased by RM38.1 million year-on-year, and the group’s share of results from associates fell by RM18.4 million — together outweighing the positive impact of higher net income of RM30.9 million and a RM11.0 million reduction in operating expenses.

What was Affin Bank’s revenue for Q2 2026? Affin Bank Bhd recorded revenue of RM647.21 million in Q2 2026, a 5.01 per cent increase from RM616.30 million in the same quarter of 2025, driven by stronger net interest income, Islamic banking income, and fee and commission earnings.

How did Affin Hwang Investment Bank perform in Q2 2026? Affin Hwang Investment Bank Bhd’s pre-tax profit more than doubled to RM83.5 million in Q2 2026, up from RM36.7 million in Q2 2025, driven by higher fee and commission income and net interest income.

What was Affin Bank’s total loan book as at June 30, 2026? Affin Bank Bhd’s total loans, advances, and financing stood at RM83.07 billion as at June 30, 2026, compared with RM78.55 billion at end-December 2025.

Did Affin Bank declare a dividend for the period ended June 30, 2026? Affin Bank Bhd did not propose a dividend for the financial period ended June 30, 2026. The group’s most recent dividend was a single-tier final dividend of 8.53 sen per share, totalling RM216.14 million, paid on June 12, 2026 for the 2025 financial year.

What was Affin Bank’s gross impaired loan ratio trend in H1 2026? Gross impaired loans at Affin Bank Bhd increased to RM1.53 billion as at June 30, 2026, from RM1.30 billion at end-December 2025, reflecting the higher impairment provisioning costs that weighed on the group’s earnings during the first half of the year.

Affin Bank Bhd’s Q2 2026 Results Underscore the Earnings Complexity of a Growth-Oriented Banking Group Managing a Higher Provisioning Cycle

Affin Bank Bhd’s second quarter 2026 financial results present a financially nuanced picture: a banking group generating measurable top-line growth — with revenue up 5.01 per cent and net income expanding 12.2 per cent in the first half — while absorbing materially higher credit provisioning costs that have compressed reported net profit on both a quarterly and half-year basis. The group’s total asset base of RM129.40 billion as at June 30, 2026, and its loan portfolio of RM83.07 billion affirm its scale as one of Malaysia’s established commercial banking groups. The standout performance of Affin Hwang Investment Bank, which more than doubled its pre-tax profit to RM83.5 million, signals meaningful income diversification within the broader group structure.

For more information on Affin Bank Bhd’s financial disclosures and corporate announcements, readers may refer to:

Affin Bank Bhd Registered and listed on Bursa Malaysia Corporate Website: www.affinbank.com.my Investor Relations / Bursa Filing Reference: Affin Bank Bhd Q2 2026 Quarterly Financial Report, filed August 14, 2026 Headquarters: Kuala Lumpur, Malaysia Regulator: Bank Negara Malaysia (Licensed Commercial Bank)