According to The Edge, KAF Investment Bank has reached out to several potential suitors, including financial institutions and regional players, to gauge interest in the Islamic digital lender. People familiar with the discussions said conversations have included a potential valuation of about RM80 million for a full sale of KAF Digital Bank, though talks remain preliminary.
The strategic review comes at a time of leadership transition at KAF Digital Bank. Chief executive officer Rafiza Ghazali is set to step down at the end of the month, with Suzaini Mokhtar appointed as acting CEO. Rafiza will move to crypto investment platform Fasset, where she is scheduled to take up the role of managing director for consumer banking from 1 February.
Since its launch, KAF Digital Bank has remained loss-making, reflecting broader challenges faced by Malaysia’s five licensed digital banks. For the financial year ended 30 June 2025, the bank posted a net loss of RM44.4 million, with total assets of RM215.66 million. Losses widened further in the first quarter of FY2026 to RM11.83 million, although assets increased to RM225.36 million, indicating continued balance sheet growth despite profitability pressures.
KAF Digital Bank was established in partnership with Carsome, MoneyMatch, Jirnexu and StoreHub. KAF Investment Bank remains the controlling shareholder with an 84% stake, while each partner holds 4%. Any change in ownership structure would require approval from Bank Negara Malaysia, which granted only five digital banking licences in 2022 following a highly competitive selection process.
At the group level, KAF Investment Bank itself remains profitable, though earnings have softened. The bank reported profit after tax of RM52.97 million for FY2025, down from RM62.12 million a year earlier. Profit declined further to RM7.2 million in the first quarter of FY2026, compared with RM19.48 million previously, while total assets stood at RM8.26 billion as at end-September 2025.
Industry participants note that heavy spending on compliance, technology, and risk management continues to weigh heavily on early-stage digital banks, delaying their path to profitability. As consolidation pressures build, KAF’s review of strategic options underscores the growing reassessment underway across Malaysia’s digital banking landscape.