Creating a society that is financially savvy
KUCHING: AKPK, which has a vision to create a society that is financially savvy, wants to be recognised as the trusted provider of financial education to adult consumers and continue to promote financial prudence.
To achieve this, AKPK’s mission is to make prudent financial management a way of life by empowering Malaysians through consumer financial education, financial counselling and debt management programmes to enable them to regain control of their finances.
“AKPK, a wholly owned subsidiary of Bank Negara Malaysia, was set up in April 2006 to proactively ensure the resilience of households by providing an avenue for individual borrowers and potential borrowers to seek advice and assistance in managing their finances and debts.
“Therefore, there is a need to create awareness of AKPK’s services to enable all those requiring its services to come forward to AKPK,” the agency said.
AKPK offers, free of charge, financial education on the responsible use of credit and basic money management skills.
AKPK’s financial education programmes include ad-hoc tailor-made talks and briefings to various target groups, a Personal Financial Management education programme, which mainly targets university students and the POWER! Programme which is designed to equip individuals with essential financial knowledge and ability to make responsible financial decisions.
AKPK also offers free counselling and advice on financial management, including financial budgeting to manage expenses and debt management programme to assist financially distressed consumers in regaining their financial control.
Individual borrowers can seek AKPK’s assistance in rescheduling or restructuring their housing loans, hire purchase loans and personal loans from, or outstand- ing credit/charge card balances due to, financial service providers under the purview of Bank Negara Malaysia.
KUCHING: Aeon Credit Service ( M) Bhd’s ( Aeon Credit) fund raising exercise to raise a gross proceeds of RM432 million is aimed at improving the group’s capital.
Analysts believed the company’s move to raise funds would enable the group to strengthen its capital position while reducing the company’s debt level as well as growing its business.
The research arm of Kenanga Investment Bank Bhd ( Kenanga Research) in a report, said Aeon Credit’s proposed fund raising, which is expected to raise RM432 million will be used to improve its capital adequacy ratio ( CAR) that will facilitate the build- up of an adequate level of capital buffer.
Besides, the research firm noted the additional funds would help to support the company’s business growth, improve the group’s liquidity and financial f lexibility by strengthening its financial position as well as providing the shareholders the opportunity to participate in an equity offering on an equal basis without diluting their interests upon conversion of the Irredemable Convertible Unsecured Loan Stocks ( ICULS).
Concurring with Kenanga Research, Affin Hwang Investment Bank Bhd ( Affin Hwang) in another report said it believed the company’s move was undertaken with the objective to boost its CAR.
The research firm opined that there is a risk of the company’s CAR hittng the minimum threshold of 16 per cent in years to come should Aeon Credit continues to increase its leverage in which the net gearing stood at 6.45 times as at November 2016.
Similarly, AllianceDBS Reseach Sdn Bhd (AllianceDBS Research) in another report said the company’s move is expected to lift the group’s CAR to 25 per cent, which is significantly above the minimum requirement of 16 per cent.
Besides that, the research firm estimated the additional capital will also lower the group’s net gearing ratio to 3.5 times.
Meanwhile, Aeon Credit in a filing to Bursa Malaysia on March 23 said the group has proposed to raise funds through a proposed two shares for one bonus share and a renounceable rights issue of three-year minimum 3.5 per cent ICULS to raise gross proceeds of RM432 million.
Positively, AllianceDBS Research outlined the issuance of ICULS minimises Aeon Credit’s immediate earnings dilution effect as the conversion to shares will take place over three years.
Additionally, Kenanga Research said if all the ICULS were to be converted to shares, the group’s CAR will be improved to 28.1 per cent.
As a result, the research firm was positive on Aeon Credit’s move to raise funds through a combination of bonus and rights issue as the proposed bonus issuance will address the share liquidity issue that has been plaguing by the group for years.
At the same time, the research firm believed the move will also reward the company’s loyal investors as well as facilitating possible equitylinked fundraising exercises in the future through a larger share capital base.
In terms of the group’s prospect, the research firm gathered that the financing demand from Aeon Credit’s targeted customers primarily the retail market remains resilient due to the company’s niche market exposure.
Thus, Kenanga Research kept its gross financing receivables growth assumption rates of approximately nine per cent for Aeon Credit’s financial year 2017 ( FY17) ended February 2017 and FY18 ending February 2018.
Besides the financial institution’s healthy loan growth, the research firm pointed out that it was also bullish on the company’s prospects due to the decent asset quality, with the nonperforming loan ( NPL) which is expected to be between two to three per cent, healthy CAR, higher return- on- equity ( ROE) of more than 20 per cent in FY17 and FY18 as well as decent dividend yields of four to five per cent.