Affin Bank expects loan segment to grow by 6%-7%

KUALA LUMPUR: Affin Bank Bhd expects its loan segment to grow between 6% and 7% for the financial year ending Dec 31, 2017 from the RM44 million recorded previously.

Managing director and CEO Kamarul Ariffin Mohd Jamil said the bulk of the growth would come from consumers, followed by corporations and small and medium enterprises.

“We are now more broad-based than before. We have a very stable growth on the consumer side, which is the backdrop for Affin this year,” he told reporters after announcing the winners of the “O.M.G Returns! Bigger than Ever!” campaign.

Kamarul Ariffin said subsidiary, Affin Islamic Bank Bhd, had also been recording stronger growth, especially in the consumer segment.

“This is in line with the campaign to expand our Islamic banking segment,” he added.

He said the bank had been focusing on its transformation programme, Affinity, and the proposed reorganisation exercise is expected to be concluded by the first quarter of 2018.

Under the proposed reorganisation exercise, Affin Bank will be taking over the listing status of Affin Holdings Bhd on Bursa Malaysia’s main market.

The exercise will also see Affin transferring its wholly owned subsidiaries, Affin Hwang Investment Bank Bhd and Affin Moneybrokers Sdn Bhd, as well as its 51%-owned joint venture AXA Affin Life Insurance Bhd and 37.07%-owned associate AXA Affin General Insurance Bhd, to Affin Bank Bhd.

Kamarul Ariffin said the bank was on track to reduce its nonperforming loan (NPL) level to between 1.6% and 1.7% by year-end from the current 2%.

“We had to restructure some of the accounts. I think after the restructuring period, it should go back to hovering between 1.6% and 1.7%, similar to that in 2016,” he added. – Bernama