Affin’s net interest income growth likely to be subdued

In the near-to-mid term, Kenanga said it remained concerned about Affin’s high exposure to the corporate segment (higher asset quality risk) and low loan loss coverage.

PETALING JAYA: Although Affin Bank Bhd is guiding for a net interest margin (NIM) expansion this year, its net interest income growth will continue to be subdued given the potential for loan contraction.

CGS-CIMB said this in a report adding that the research outfit is also projecting a 275.6% surge in its loan loss provisions for the financial year (FY) ending Dec 31,2020, in line with the bank’s guidance.