The Good (Positives)

1. Strong Asset Growth
· Total assets grew 8.7% YoY to RM106.8 billion.
· Gross financing grew 5.9% YoY to RM76.1 billion.
· Customer deposits and investment accounts grew 9.2% YoY to RM88.1 billion.
2. Healthy Capital Adequacy
· Total Capital Ratio stood at 18.4% (well above regulatory minimum).
· CET1 ratio at 13.6%, indicating strong capital buffers.
3. Improved Asset Quality
· Gross impaired financing ratio improved to 1.02% (from 0.97% in Dec 2025).
· Net allowance for impairment on financing decreased by 32% YoY (from RM79.8m to RM54.2m).
4. Strong Liquidity and Funding Base
· Customer deposits grew to RM65.5 billion.
· Investment accounts grew significantly to RM22.6 billion.
· Liquidity position supported by high cash and short-term funds (RM2.84 billion).
5. Stable Net Income (YoY)
· Total net income increased slightly YoY to RM605 million (from RM587.8 million).
· Net fund-based income grew, driven by higher financing and investment income.
6. Post-Q1 Capital Raising
· Completed issuance of RM1.0 billion Subordinated Sukuk Murabahah in April 2026, strengthening capital further.

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The Bad (Challenges & Concerns)

1. Lower Profitability (YoY & QoQ)
· Profit after tax (PAZT) fell 8.9% YoY to RM115.0 million.
· QoQ profit dropped sharply by 34.3% from RM175.1 million in 4Q2025.
2. Higher Operating Expenses
· Total overheads increased 7.7% YoY (RM17.9 million higher).
· Personnel expenses rose 8.0% YoY.
· Establishment costs (IT, depreciation, rentals) increased.
3. Lower Non-Fund Based Income
· Non-fund based income fell 18.1% YoY due to:
· Losses from revaluation of investment securities.
· Lower foreign exchange income.
· Lower fees and commission income.
4. Higher Finance Costs
· Finance costs increased 11.3% YoY (RM4.6 million higher), driven by higher costs on subordinated sukuk.
5. Decline in Net Income (QoQ)
· Net income fell 8.2% QoQ (RM59.4 million lower) due to:
· One-off property disposal gain in 4Q2025 not repeated.
· Net loss from FVTPL revaluation.
6. Lower Net Assets Per Share
· Net assets per share fell from RM3.56 (Dec 2025) to RM3.53 (March 2026), due to dividend payments and fair value losses.