[%kNWR%]
Research by Kenanga
UNDERPERFORM – TP RM1.80

" Finding Balance within Its Customer Mix”

AFFIN’s 1HFY24 results were within expectations but may see pressures in 2HFY24 as repayment stress emerges, undermining the write-backs seen YTD. The group may be more selective with its acquisition of SME customers and deposits which may also translate to slower growth in the near-term. Still, we await initiatives on Sarawak State Government’s entry to AFFIN, albeit postponed to end-FY24. We trim our FY24F-FY25F earnings while maintaining our UNDERPERFORM call and GGM-derived TP of RM1.80.

Analyst:
Clement Chua
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$KLSE-AFFIN
Research by Kenanga
UNDERPERFORM – TP RM1.80

" Finding Balance within Its Customer Mix”

AFFIN’s 1HFY24 results were within expectations but may see pressures in 2HFY24 as repayment stress emerges, undermining the write-backs seen YTD. The group may be more selective with its acquisition of SME customers and deposits which may also translate to slower growth in the near-term. Still, we await initiatives on Sarawak State Government’s entry to AFFIN, albeit postponed to end-FY24. We trim our FY24F-FY25F earnings while maintaining our UNDERPERFORM call and GGM-derived TP of RM1.80.

Analyst:
Clement Chua
clement.chua@kenanga.com.my