{
  "id": 1417272,
  "title": "Affin Bank misses estimates as provisions rise, says CIMB Securities",
  "url": "https://urgent.news/2026/08/17/affin-bank-misses-estimates-as-provisions-rise-says-cimb-securities",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-17T04:10:48.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/corporate/2026/08/1512880/affin-bank-misses-estimates-provisions-rise-says-cimb-securities"
  },
  "original_language": "en",
  "account": "KUALA LUMPUR: Affin Bank's second quarter earnings fell short of expectations, with core net profit down 1.7% year-on-year to RM263.0 million. Higher provisions, rising to 142.2% year-on-year, hurt the bank's financial performance. Net credit charge (NCC) increased significantly to 38 basis points, surpassing the 13 basis points expected for the year. The bank's second-quarter net profit declined 11.1% year-on-year due to a 12.5% drop in non-interest income and a 14.4% rise in provisions. Affin Bank's loan growth remained robust at 13.6%, driven by corporate, enterprise, and community banking. Net interest income (NIM) improved by three basis points to 1.52%, while the cost-to-income ratio fell to 63% from 68.9%. However, provisions rose by another 14.4% in the quarter. The bank now expects NCC to stay above the previously estimated 13 basis points, due to ongoing credit issues like Covid-19 mortgages, hire-purchase loans, and credit card delinquencies. Consequently, earnings forecasts for 2026, 2027, and 2028 were reduced by 7%, 5.6%, and 11.5%, respectively. Affin Bank's stock was downgraded to \"Hold\" from \"Buy\" and its target price slashed to RM2.30 from RM2.82.",
  "summary": "KUALA LUMPUR: Affin Bank Bhd’s first-half 2026 core net profit fell 1.7 per cent year-on-year (YoY) to RM263.0 million, coming in below CIMB Securities Sdn Bhd’s expectations as higher provisions weighed on its second-quarter performance.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}