Affin Bank sinks to 8-month low after Q2 profit disappoints
Its net profit slumped 11% as provisions for bad debts more than doubled in the second quarter.
Affin Bank Bhd's shares hit an eight-month low of RM2.20 after reporting a 11% decline in second quarter net profit in 2026. The bank's net profit for Q2 FY2026 fell to RM127.52 million, compared to RM143.49 million a year earlier. The first half of FY2026 saw a total net profit of RM263.02 million, which is a 2% drop from the same period in 2025.
Affin's shares fell 1.3% to RM2.21, valuing the state-backed bank at RM5.82 billion. The bank's president Wan Razly Abdullah cited the prolonged US-Iran conflict and rising cost-of-living pressures in Malaysia, which have intensified consumer sentiment and spending strains. Affin has tightened its underwriting standards in response to the situation.
The bank's asset value has dropped 21% from its February high of RM2.78 due to concerns over rising bad debt allowances. Credit impairment losses more than doubled to RM78.8 million in the Q2 of 2026. HLIB downgraded the stock to "hold" from "buy," citing weaker near-term return on equity and delayed earnings recovery.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Affin Bank sinks to 8-month low after Q2 profit disappoints freemalaysiatoday.com
