everybody seems worried about the US n N Korea war will brock out.But to me It will not happen as I see it.It will be lose -lose situation for US. So I will continue buy n buy.
is expecting loans growth in the second half to come in stronger compared to the first half from January to June 2017.
The bank's managing director and chief executive officer Kamarul Ariffin Mohd Jamil said that it had grown loans by some 2.5% in the first half and is anticipating full year growth to be at least 6%.
"We are quite comfortable to achieve a growth of between 6% and 7% as growth in the second half will be stronger," he said at a press conference after a prize giving ceremony for the OMG Returns! here on Monday.
He also said that the bank was still on track and still awaiting regulatory approval to acquire FGV's stake in AXA-Affin General.
No favourable catalyst in the short-term ahead, current conditions prevailing…maintain NEUTRAL. We reiterate our NEUTRAL call as we see no change in the prevailing conditions ahead. There is no concrete catalyst and game changer on the horizon and structural and cyclical headwinds are still prevailing such as; (i) moderating economy, (ii) subdued loans growth, and (iii) downward pressure on NIM. We maintain our MARKET PERFORM call for most of the banking stocks in our coverage with the exception of AFFIN, AFG, AMBANK and RHBBANK, which are at OUTPERFORM as at current share prices, we see attractive proposition with a potential total return of more than 10% each.
For 2QCY17, all the nine (9) banking stocks under our coverage met our expectations. YoY, earnings improved as impairment allowances fell as expected with improvement in asset quality. We also see widening NIMs due to better management in funding costs and better repricing of assets. However, loans growth seemed to be easing. All in, we maintain our NEUTRAL stance on the sector as the prevailing challenges in the economy still remain. As results were mostly in line, we maintain our MARKET PERFORM call for most of the banking stocks in our coverage with the exception of AFFIN (TP: RM3.00), AMBANK (TP: RM5.00), AFG (TP: RM4.15) and RHBBANK (TP: RM5.60) due to their undemanding valuations.
15-Sep-2017 Insider EMPLOYEES PROVIDENT FUND BOARD (a substantial shareholder) disposed 24,800 shares on 12-Sep-2017. 15-Sep-2017 Insider EMPLOYEES PROVIDENT FUND BOARD (a substantial shareholder) disposed 185,800 shares on 11-Sep-2017. 15-Sep-2017 Insider EMPLOYEES PROVIDENT FUND BOARD (a substantial shareholder) disposed 222,600 shares on 18-Aug-2017. https://klse.i3investor.com/quoteservlet.jsp?sa=ss&q=AFFIN
Insas is not a bank, so no impact except for maybe its leasing and money lending business which are small. As for Affin AND ALL OTHER BANKS, a higher general (not specific) loan loss impairment ie. general provision for doubtful debts on loans is required. The new Standards will introduce a new term "Expected Credit Losses" (ECL) where a charge for loan impairment must be made from the first day the loan is disbursed/given out. All existing loans previously given out must also be impaired although the loans never defaulted. However Bank Negara will allow loss impairment made on existing loans against other reserves rather than the P&L. Hope you can understand as I try to explain as simple as possible.
To me these additional loan loss impairments are general provisions on the good loans. It's a "better safe than sorry" measure to protect banks from unexpected major crisis which previously wiped out several big US and European banks.
Bank Negara has however allowed this one time huge charge not to be taken to P&L but to other reserves in the balance sheet. NTA for ALL BANKS will however be reduced.
UOB KAYHIAN'S ANALYSIS WAS PROVEN RIGHT WHEN IT PEGGED AFFIN'S FAIR VALUE AT RM2.50 (WHEN IT WAS AT 2.82. IT ACTUALLY TOUCHED 2.49). IT WAS CORRECT IN POINTING OUT ITS VULNERABILITY TO ITS LOAN IMPAIRMENT RISKS. NOW WITH THE IMPLEMENTATION OF THE MORE STRINGENT MFRS9, ALL BANKS WILL BE BADLY HIT. FORTUNATE TO BE ABLE TO FOLLOW UOBKAYHIAN'S N BOUGHT SOME AT 2.50/2.51 AND EXITED AT BETWEEN 2.67 TO 2.68. SPEAKING ONLY FOR MYSELF I THINK ITS GOING TO BE RISKY TO BUY BANK SHARES NOW WITH THE ENFORCEMENT OF MFRS9.
Affin's high NTA over its market price will provide a huge safety margin sheild when MFRS 9 takes effect on 01.01.2018, first QR will be March 2018, to be released in May 2018.
i think cimb/rhb must have made big losses on their cu/cv warrants. the exercise price is so nice for buyers. those that bot back then must had made alot.
now small/mid banks r starting to look interesting again.
I did ok on the call warants, bought as low as 17 sen at the time Trump won the American Presidential Election and sold at around 72 sen, over 300% gain, my best percentage return this year.
Usually I avoid call warrants because the tenor is very short. Affin's was an exception because I felt the mother share was so undervalued and back in November market was temporarily bearish because ringgit was under pressure approaching 4.50 to US Dollar.
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TheContrarian
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Posted by TheContrarian > 2017-09-06 16:58 | Report Abuse
Today the overall market is ignoring the North Korea tension.