Affin Bank Berhad: A Beacon of Stability Amid Global Uncertainties

In the midst of ongoing global trade tensions and tariff uncertainties, particularly between the US and China, financial institutions are increasingly being viewed as safe havens for investors. Among these, Affin Bank Berhad, a prominent Malaysian financial institution, stands out as a compelling choice. This sentiment is echoed by analysts who highlight the banking sector’s robust dividend yield of 5.1%, which serves as a natural cushion against potential capital downsides and provides an effective price floor amid market volatility. With undemanding valuations and a resilient earnings outlook, the sector, including Affin Bank, is seen as an attractive defensive play.

Strong Financial Performance in Q1 2025

Affin Bank Berhad has reported a notable 12.6% increase in net profit for the first quarter of 2025, reaching RM124.1 million, up from RM110.2 million in the same period the previous year. This growth is attributed to a higher net income of RM39.4 million and a significant contribution of RM21 million from its associates. The bank’s gross loans and financing have also seen a healthy increase of 7.1% year-on-year, reaching RM72.9 billion. Customer deposits have risen by 5.2% to RM75.5 billion, with the current account and savings account (Casa) ratio improving to 32.2% from 24.9% the previous year.

Market Position and Outlook

As of May 15, 2025, Affin Bank’s close price stood at MYR 2.68, with a 52-week high of MYR 3.249 and a low of MYR 2.207. The bank’s market capitalization is valued at MYR 6,790,680,000, and it maintains a price-earnings ratio of 13.32. These figures reflect the bank’s solid market position and investor confidence in its financial health and growth prospects.

Conclusion

In a landscape marked by economic uncertainties, Affin Bank Berhad’s strong financial performance and strategic positioning within the banking sector make it an attractive option for investors seeking stability and growth. With its robust dividend yield and resilient earnings outlook, the bank is well-equipped to navigate the challenges ahead, offering a promising avenue for those looking to safeguard their investments.