COVID–19 NEWS   Spain’s Queen catches COVID-19 amid countrywide spike in infections | S Korea’s new COVID-19 cases bounce back to over 10,000 amid resurgence woes | Italy's COVID-19 transmission rate rises for 4th consecutive week | N Korea's first COVID-19 cases traced to area bordering S Korea: State media | COVID: Rise in new infections, drop in death cases last week - Health DG | 
BUSINESS

Affin Bank shareholders give the nod to AHAM divestment

25/05/2022 04:41 PM

KUALA LUMPUR, May 25 (Bernama) -- Affin Bank Bhd shareholders have given the nod to the proposed divestment of seven million shares, or 63 per cent equity interest, in Affin Hwang Asset Management Bhd (AHAM) by Affin Hwang Investment Bank Bhd to Starlight Asset Sdn Bhd for RM1.417 billion.

President and group chief executive officer Datuk Wan Razly Abdullah said the divestment exercise, which is expected to be completed in the third quarter of this year, would result in a gain of RM1.063 billion and the bulk of it would be reinvested in the bank’s core banking business.

“We want to accelerate the organic growth. Gains from the divestment will be invested into the bank and assuming at 10 times multiplier, it will generate additional income of RM190 million net interest income or about RM142 million after-tax over two years.

“It would also improve the group’s CET1 (Common Equity Tier 1) to circa 16 per cent and total capital of circa 24 per cent after dividend to support the group’s future growth and recalibration of market capitalisation,” he told reporters after the bank’s annual general meeting and extraordinary general meeting here today.

He said the proceeds would also help to fuel about RM5 billion to RM6 billion loan growth per annum, enhance customer experience and complete an insurance deal to make it the second-largest general insurance company in Malaysia.

Meanwhile, Wan Razly said Affin Islamic also saw a significant turnaround and has become a major contributor to the Affin group with new products introduced in 2021 including A1ADDIN, a new digital banking proposition, and AffinMax Corporate internet banking app.

He said the bank is committed to improve its asset quality through recoveries whilst at the same time, increasing its loan loss reserve and coverage.

On the overnight policy rate, it said the increase of the rate by Bank Negara Malaysia (BNM) is expected to taper banks’ loan growth.

However, he said there are still opportunities for financing and growth with a positive gross domestic product growth and riding on the pandemic recovery.

On the digital bank licences, he said it would put pressure on the market, especially the traditional banks.

He said for Affin, this would come in terms of rising cost in deposits and war in talents.

On dividend, he said the bank is expected to declare a special dividend following the divestment gains which is expected to be announced by end of this year.

However, the amount has yet to be decided by the board members and approved by BNM.

The bank today declared a 12.5 sen dividend per share, its highest in seven years.

-- BERNAMA

 

 


Bernama is the trusted source of reliable real-time comprehensive and accurate news for both the public and media practitioners. Our news is published at www.bernama.com ; BERNAMA TV on: Astro Channel 502, unifi TV Channel 631, MYTV Channel 121 IFLIX; and Bernama Radio broadcasting locally on FM93.9 in Klang Valley, Johor (FM107.5), Kota Kinabalu (FM107.9) and Kuching (FM100.9).

Follow us on social media :
Facebook : @bernamaofficial, @bernamatv, @bernamaradio
Twitter : @bernama.com, @BernamaTV, @bernamaradio
Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial
TikTok : @bernamaofficial

© 2022 BERNAMA   • Disclaimer   • Privacy Policy   • Security Policy