Our website is made possible by displaying non-intrusive online advertisements to our visitors.
Please consider supporting us by disabling or pausing your ad blocker.
LTAT-Bousted restructuring halt is bad news for Affin. I am sure Affin gave out lots of loans to Boustead. How to repay Affin if the restructuring falls apart? The deal with Sarawak also still not completed. No Bursa announcement on Sarawak becoming large shareholder and no announcement on Boustead no longer significant shareholder. I am waiting for this counter to drop below RM2 then can collect. I am sure Tan Sri Abang Jo and Sarawak will clean up this bank
Sarawak govt has 20 billion USD reserves in their hand, together with 80% of oil production and biggest land size with plenty of natural resources... and now they got the Affin bank.. imagined the financial impact when they put all their money in this bank they owned..
Affin – will a change of shareholders improve performance
The performance of Bursa banking group Affin over the past 12 year was nothing to shout about. Its performance, measured against a panel of 10 Bursa Malaysia banks, is below the sector median across key metrics such as returns, efficiency, and loan performance. However, it has improved its capital adequacy ratio.
But I would not consider Affin a value trap as it remains profitable with a margin of safety over 30% based on the asset value. However, it lacks a sufficient margin of safety under the earnings value.
The Sarawak State Government has recently acquired a substantial stake in the bank. There is hope that the state would divert its funds to Affin thereby improving its deposits and hopefully grow its loans. But if the challenge is efficiency and loan performance, I am not sure whether there would be a quantum leap in performance. https://www.i4value.asia/2024/02/is-affin-value-trap.html#more
