AFFIN BANK SEES 6-7PC RISE IN LOAN SEGMENT
Proposed reorganisation exercise set to be concluded by Q1 2018
KUALA LUMPUR
AFFIN Bank Bhd expects its loan segment to grow between six and seven per cent for the financial year ending December 31 from the RM44 million previously.
Managing director and chief executive officer Kamarul Ariffin Mohd Jamil said the bulk of the growth would come from consumer segment, 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,” said Kamarul Ariffin after announcing the winners of the “O.M.G Returns! Bigger than Ever!” campaign, here, yesterday.
He said its 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,” said Kamarul Ariffin.
He said the bank had been focusing on its transformation programme, Affinity, and the proposed reorganisation exercise was expected to be concluded by the first quarter of next year.
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 Money brokers Sdn Bhd, as well as its 51 per cent-owned joint venture AXA Affin Life Insurance Bhd and 37.07 per cent-owned associate AXA Affin General Insurance Bhd, to Affin Bank Bhd.
Kamarul Ariffin said the bank was on track to reduce its non-performing loan level to between 1.6 and 1.7 per cent by year-end from the current two per cent.
“We had to restructure some of the accounts. I think after the restructuring period, it should go back to between 1.6 and 1.7 per cent, similar to that of last year,” he added.
For the campaign, six grand prize winners won new Proton Persona and Proton Myvi while 16 second place winners bagged prizes of RM8,000 in cash and electrical vouchers worth RM2,000.
“Since we embarked on the campaign, we have recorded a yearon-year retail deposit growth of RM545 million, or 17 per cent, along with 48,732 new accounts,” said Kamarul Ariffin. Bernama