KUALA LUMPUR (Dec 2): RHB Research Institute is maintaining its fair value of RM2.05 and Underperform call on AFFIN HOLDINGS BHD [].
It said on Friday that Affin’s management guided for loan growth of 13% to 14% this year, in line with its annualised loan growth of 12.9%.
“For 2012, focus is on preserving asset quality and capital and as such, loan growth is expected to slow down further to 9%-10%,” it said.
RHB Research said that the net interest margins (NIM) remain under pressure due to competition on both lending and deposit gathering, but Affin’s management thinks 3Q11 NIM could have reached bottom. Management hopes to hold NIMs stable ahead.
“While recoveries were strong in 3Q, this was helped by recoveries from some large corporate accounts. Going forward, such recovery levels are unlikely to be sustainable,” the research house said.
It said on Friday that Affin’s management guided for loan growth of 13% to 14% this year, in line with its annualised loan growth of 12.9%.
“For 2012, focus is on preserving asset quality and capital and as such, loan growth is expected to slow down further to 9%-10%,” it said.
RHB Research said that the net interest margins (NIM) remain under pressure due to competition on both lending and deposit gathering, but Affin’s management thinks 3Q11 NIM could have reached bottom. Management hopes to hold NIMs stable ahead.
“While recoveries were strong in 3Q, this was helped by recoveries from some large corporate accounts. Going forward, such recovery levels are unlikely to be sustainable,” the research house said.
