Latest news with #AffinBank
Free Malaysia Today
21-05-2025
- Business
- Free Malaysia Today
Affin Bank-AMMB merger likely a bridge too far
The Sarawak government is said to be seeking to buy a stake in another bank to merge with its 31%-owned Affin Bank. PETALING JAYA : The Sarawak government's purported overtures for a potential merger between its unit Affin Bank Bhd and AMMB Holdings Bhd is unlikely to bear fruit, said CIMB Securities. A merger between the two banking groups will be dilutive and unlikely to be well received by the market, the research house said in a note today. Given concerns over shareholder dilution and post-merger direction, it said neither of the two likely merger scenarios, where Affin acquires AMMB or vice versa, appear particularly attractive. CIMB's note follows a recent report that the Sarawak government was mulling buying a stake in another bank to merge with Affin, in which it has a 31.3% stake. Sarawak acquired a 27% stake in Affin for RM1.78 billion from the Armed Forces Fund Board (LTAT) and its unit Boustead Holdings Bhd last November. Prior to that, it had a 4.8% stake in the mid-sized bank. According to reports, Sarawak was said to have approached Azman Hashim, who holds an 11.8% stake in AMMB through Amcorp Group Bhd, but talks have not moved forward. Meanwhile, Kuching has denied formal talks but has indicated openness to collaboration. AMMB wholly owns AmBank (M) Bhd, the country's sixth-largest banking group in terms of assets while Affin Bank is at No 7 among Malaysia's eight banking groups. Both merger scenarios would involve significant new share issuance. In the first scenario where Affin acquires AMMB, it would need to issue about 7.7 billion new shares, ramping up its total share base to over 10 billion. This would dilute the Sarawak government's stake to just 7.7% while Amcorp's holding would rise to 8.9%, making it the largest shareholder in the enlarged entity. 'We believe Scenario 1 is unlikely, as the Sarawak government's stake would be significantly diluted,' CIMB said. In the other scenario where AMMB acquires Affin, the former's share base would rise by nearly 64%. In this case, Sarawak would retain a 12.2% stake in the combined entity while Amcorp's interest would fall to 7.2%. Noting that AMMB's share price dropped following the merger speculation, CIMB believes this reflects 'investor unease' over potential changes in AMMB's strategic direction and the lack of clarity surrounding the proposed deal. 'Overall, we are not particularly enthusiastic about the potential merger under either scenario,' it concluded. Earlier reports said the Sarawak government had also considered Bank Muamalat Bhd, which is controlled by Syed Mokhtar Albukhary's DRB-Hicom Bhd, and Kuwait Finance House (M) Bhd, before reaching out to Amcorp Group. Affin's shares closed at RM2.71 today, valuing it at RM6.87 billion while AmBank was unchanged at RM5.36, giving it a market capitalisation of RM17.73 billion.
Borneo Post
21-05-2025
- Politics
- Borneo Post
Affin Bank's hornbill blunder a serious misrepresentation of Sarawak's identity, says Pending rep
Yong pointed out that the Great Hornbill is not native to Sarawak and cited local zoologist Jason Teo, who confirmed the bird depicted is indeed the wrong species. – Photo by Roystein Emmor KUCHING (May 21): Pending assemblywoman Violet Yong insisted she was not making a mountain out of a molehill over Affin Bank's depiction of the wrong hornbill on its Kenyalang Card, calling it a serious misrepresentation of Sarawak's identity. Speaking during the State Legislative Assembly (DUN) sitting today, she criticised the bank for featuring the Great Hornbill instead of the Rhinoceros Hornbill – Sarawak's official state bird – on a card launched by the Premier and marketed exclusively for Sarawakians. 'This is not a trivial issue – it distorts Sarawak's heritage and is an insult to our people,' she said. Yong pointed out that the Great Hornbill is not native to Sarawak and cited local zoologist Jason Teo, who confirmed the bird depicted is indeed the wrong species. She further revealed that the image used was not custom-designed, but lifted from a stock photo website without any Sarawakian input or cultural consideration. 'Affin Bank claiming it as a 'creative tribute' is misleading and disrespectful,' she said. Adding on, Yong criticised the Gabungan Parti Sarawak (GPS) leaders for staying silent, saying their lack of response reflects a disconnect from Sarawakian values. She also took aim at Kuching South Mayor Dato Wee Hong Seng for making personal attacks rather than addressing the core issue. In view of this, she urged the Sarawak government to use its 31.25 per cent stake in Affin Bank to withdraw the current card and redesign it with the correct hornbill. 'They have made profits, so don't tell us there is no budget to fix this,' she said. Having said that, Yong expressed sympathy for the Sarawak Tourism Board, saying the misstep undermines years of work to promote Sarawak's identity. She also criticised Tourism Minister Dato Sri Abdul Karim for dismissing the matter, calling his remarks 'damaging and tone-deaf'. 'I wouldn't have raised this issue if the card hadn't been marketed as a symbol of Sarawak pride – but it was,' she said, warning that leaving the error uncorrected could confuse future generations about the state's iconic bird. Yong concluded by calling for immediate correction and a formal apology, adding that the dignity of Sarawak's identity must be upheld without compromise. Afffin Bank DUN hornbill kenyalang violet yong
Malay Mail
21-05-2025
- Business
- Malay Mail
Potential merger between Affin and AMMB could expand share base significantly, says CIMB Securities
KUALA LUMPUR, May 21 — CIMB Securities Sdn Bhd expects the potential merger between Affin Bank Bhd and AMMB Holdings Bhd to entail significant issuance of new shares, which will likely be quite dilutive. In a note today, CIMB Securities said it assessed two possible merger scenarios for Affin and AMMB, although it was not particularly enthusiastic about the merger. 'A merger between two domestic banking entities would necessitate the acquisition of the entire stake, given that banks are not allowed to hold two banking licenses. 'If Affin acquires AMMB at a price-to-book value ratio (P/BV) of one time, Affin will need to issue a significant 7.7 billion new shares at the current market price of RM2.60 to acquire 100 per cent of AMMB,' it said. CIMB Securities said the scenario would mean a several-fold increase in Affin's issued shares to 10.25 billion from 2.5 billion shares currently. On the other hand, it said the second scenario would see AMMB acquiring Affin at a P/BV of one time, which would still lead to a significant 63.8 per cent increase in AMMB's issued shares base. 'AMMB's target price would decline to RM4.27 (current: RM5.70) based on a return on equity of 7.8 per cent (current: 8.6 per cent) and a fair P/BV of 0.7 times (current: 0.9 times). 'The target price may be increased if AMMB were to buy Affin at a P/BV of 0.6 times or lower (implying an acquisition share price of only RM2.75 or lower for Affin), which may lead to AMMB's target price moving up to RM6.35 for the financial year 2026,' it said. However, CIMB Securities noted that an excessively low acquisition price for Affin's shareholders may be deemed unpalatable by Affin's minority shareholders. Recently, news reports indicated that the Sarawak government may be looking to buy a stake in another bank and merge it with Affin, and AMMB's major shareholder has reportedly been approached. The Sarawak government has since denied sending any government representative to discuss the matter with Amcorp Group Bhd, but it is reported that it remains open to negotiating with any entity that wants to collaborate with the state government. — Bernama
Free Malaysia Today
21-05-2025
- General
- Free Malaysia Today
Be accurate with hornbill design, zoologist urges bank
The rhinoceros hornbill is the state bird of Sarawak. It is listed as vulnerable by the International Union for the Conservation of Nature. (Jason Teo pic) PETALING JAYA : A zoologist has urged Affin Bank to rectify the image of a hornbill on the bank's debit card for Sarawakians, saying that key features showed that it was not the rhinoceros hornbill, the state bird of Sarawak. Jason Teo, a Sarawakian, said the casque of the hornbill shown matched that of the rhinoceros hornbill but its yellowish-white neck and stripes of white on its wings were features of the great hornbill species. He said rhinoceros hornbills are native to East and West Malaysia, but not the great hornbills. Affin Bank should make the necessary amendments. 'Mistakes happen, and I believe this was an honest one,' he said, the Borneo Post reported. Teo said the image of the hornbill on the card should not be a mix of several species. 'The designated state bird of Sarawak is specifically the rhinoceros hornbill, not just any hornbill,' he said. The great hornbill is found in mainland Asia while the rhinoceros hornbill is found only in the forests of Peninsular Malaysia and the islands of Sumatra, Java and Borneo. On Thursday, Sarawak DAP secretary Violet Yong had urged the bank, which is partly state-owned, to apologise and replace the cards. Yesterday, Kuching South mayor Wee Hong Seng defended the bank, saying the graphic was merely a conceptual design that was 'quite close' to the rhinoceros hornbill. The card was introduced by the bank for its Kenyalang savings account for Sarawakians last month. The Sarawak government has a 31.25% stake in the bank.
The Star
20-05-2025
- Business
- The Star
Affin Bank cautious yet confident amid volatility
Affin Bank president and group CEO Datuk Wan Razly Abdullah PETALING JAYA: Affin Bank Bhd recorded double-digit year-on-year (y-o-y) growth in pre-tax profits to RM178.2mil for its first quarter ended March 31, 2025 (1Q25). The 23.7% increase was attributed to higher net income of RM39.4mil and a stronger share of results from associates amounting to RM21mil. 'Our 1Q25 performance reflects continued execution of the Affin Axelerate 2028 Plan, with pre-tax profits rising 23.7% y-o-y. 'This was underpinned by higher net interest income, an improved funding mix, and stronger contributions from associates,' Affin Group president and group CEO Datuk Wan Razly Abdullah said in a statement. 'Amid a persistently tight monetary environment and ongoing global macroeconomic headwinds, we continued to exercise prudent cost and credit discipline. 'While we remain cautious on the near-term outlook due to external volatility, we remain confident in our ability to navigate the landscape, supported by healthy asset quality, a well-diversified balance sheet, and disciplined execution,' he added. The bank's gross loans and financing grew 7.1% y-o-y to RM72.9bil, compared to RM68bil as of Mar 31, 2024. Customer deposits rose by 5.2% to RM75.5bil, while current account and savings account (CASA) ratio improved significantly to 32.2% as of March 31, 2025, up from 24.9% a year ago. 'Our CASA ratio surpassed financial year 2025 (FY25) target of 31%, as a result of our continued efforts to lower the group's cost of funds. 'We expect the momentum in CASA growth to snowball into lower cost of funds and net interest margin expansion,' Wan Razly said. Net interest income gained 6.4% to RM206mil, compared to RM193.7mil in the preceding financial quarter. Non-interest income came in at RM140.1mil, a slight decrease of 1.7% or RM2.4mil from RM142.5mil in the previous corresponding period. The bank said it has a strong business pipeline, which includes financial advisory services and debt capital market deals. Wan Razly highlighted Affin's recent lead role in financing of Macrovalue's acquisition of Cold Storage Singapore, adding that many more landmark deals are expected on this front. 'Our recent collaboration with MUFG Bank (M) Bhd, the fifth-largest bank in Asia, underscores our commitment to providing tailored solutions, facilitating cross-border trade and investment, and expanding our expertise in key areas, including Islamic finance, green finance, and digital transformation,' he said. 'By leveraging our deep market knowledge and MUFG's global network, we are unlocking new opportunities for our customers and business partners, helping them scale in an increasingly interconnected global economy,' he added. Meanwhile, the bank said its first international credit rating of A3 from Moody's Ratings strengthens its credit profile and elevates the group's standing in the global capital markets. 'This positions us to secure more cost-efficient US dollar funding, diversify our investor base, and unlock strategic cross-border financing opportunities that support our long-term growth trajectory,' Wan Razly said.
