Affin Bank to focus on higher yielding loans in 2Q


The lender’s loan growth is expected to advance considering its growth-focused strategy and firmer economic expansion, said Hong Leong Investment Bank Research.

PETALING JAYA: The net interest margin (NIM) for Affin Bank Bhd is expected to widen in the second quarter of 2024 (2Q24), given its pivot to higher yielding loans and competition for fixed deposit is now less intense.

The lender’s loan growth is expected to advance considering its growth-focused strategy and firmer economic expansion, said Hong Leong Investment Bank Research.

Meanwhile, MIDF Research said that management indicated difficulty in achieving is initial financial year 2024 (FY24) pre-tax profit target of RM1bil, especially after a lacklustre 1Q24 results.

The initial FY24 targets were made without a potential deal with the Sarawak government in mind, implying room for upside.

However, MIDF Research believes it is difficult to achieve such targets even with the Sarawak deal as it has been delayed, so Affin is unable to reap any benefits until second half of FY24.

MIDF Research made no changes to its earnings forecasts and maintained its “sell’’ call on the stock with a target price of RM1.82.

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