{
  "id": 837744,
  "title": "Affin Bank Q2 net profit falls 11pct on higher impairment allowances",
  "url": "https://urgent.news/2026/08/14/affin-bank-q2-net-profit-falls-11pct-on-higher-impairment-allowances",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-14T05:07:16.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/corporate/2026/08/1511004/affin-bank-q2-net-profit-falls-11pct-higher-impairment"
  },
  "original_language": "en",
  "account": "Affin Bank Bhd reported a 11.13% year-on-year decline in net profit to RM127.52 million in Q2 2026, due to higher impairment allowances and reduced profit from associates. Revenue, however, increased by 5.01% to RM647.21 million, driven by stronger net interest and Islamic banking income, as well as higher fee and commission income. The bank's impairment provisions rose by RM38.1 million, while its share of associates' results declined by RM18.4 million. These factors were partially offset by a RM30.9 million increase in net income and a RM11 million reduction in operating expenses. Net interest income grew by 10.5% to RM235.20 million, while income from Islamic banking surged by 13.9% to RM249.35 million. Fee and commission income jumped by 60.6% to RM95 million. However, gains on financial instruments fell to RM26.58 million, and other income decreased to RM41.09 million. Pre-tax profit dropped by 8.1% to RM165.19 million. The Islamic banking arm's pre-tax profit fell by RM22.7 million to RM75.7 million, mainly due to increased impairment allowances and higher operating expenses. In contrast, Affin Hwang Investment Bank's pre-tax profit more than doubled to RM83.5 million. For the first half of 2026, Affin Bank's net profit fell 1.7% to RM263.02 million, despite an 12.2% rise in net income to RM1.30 billion. Total assets reached RM129.40 billion, up from RM124.07 billion, while total liabilities increased to RM117.02 billion. Affin Bank did not propose a dividend for the quarter.",
  "summary": "Affin Bank Bhd reported an 11.13% year-on-year decline in net profit to RM127.52 million in Q2 2026, primarily due to higher impairment allowances and a lower share of profit from associates. Despite this, revenue increased by 5.01% to RM647.21 million, driven by stronger net interest and Islamic banking income, as well as higher fee and commission income. The bank's impairment losses rose by RM38.1 million, while its share of results from associates declined by RM18.4 million. Net interest income grew by 10.5% to RM235.20 million, and income from Islamic banking business increased by 13.9% to RM249.35 million. However, net gains on financial instruments fell significantly to RM26.58 million, and other income declined to RM41.09 million. Pre-tax profit decreased by 8.1% to RM165.19 million.",
  "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."
}