Affin Bank : ‘Affinity’ to boost transactional capabilities, CASA Unrated

Recall, Affin Bank recorded a 44.7%YoY jump in profit after tax by 44.7%YoY to RM359.3mil for 9MFY18. Strong traction in Islamic banking income and NOII from an increase in net fee and commission income, although partially offset by lower NII, gave rise to the improved earnings.

Gross loans grew 6.7% YTD (FY17: 7.0%YoY) against FY18 target of 6.0-7.0% underpinned by growth in consumer, corporate and SME financing. Presently, the mix of consumer, corporate and SME financing to total gross loans is 49.8%, 42.1% and 8.1% respectively. The group aims to rebalance the composition to 40.0% consumer, 40.0% corporate and 20.0% SME loans eventually. By loan purpose, its financing comprises largely of mortgage loans (20.3% residential and 13.4% non-residential property loans), HP (26.4%), working capital (24.0%) and construction loans (7.7%).

For FY19, it aims to grow its loans by 6.0%. This will be largely driven by consumer loans accounting for 50.0% of the expansion with SME and corporate financing contributing 25.0% each to the financing growth.

Others:

Eco World Development : FY18 core net profit grows 27.3% Hold

QUICK TAKE

Kian Joo Can Factory : Mandatory general offer by Can-One at RM3.10/share Accept Offer

GLOBAL STRATEGY

Global Macro Strategy – Exciting Times Await Emerging Market

NEWS HIGHLIGHTS

Protasco : Protasco unit’s SUKE contract terminated

Vertice : Sells 60% in Kumpulan Voir to deputy chairman

IPO : Gagasan Nadi Cergas to raise RM60m from IPO

Technology Sector : Huawei troubles spell opportunity for Samsung as 5G nears

Source: AmInvest Research - 14 Dec 2018