AFG (BUY)
Delivering The Goods
§ 2QFY12 results above HLIB and consensus expectations due to continued
non-interest income growth and subdued credit charge.
§ Results show management gradually delivering its strategy with
broad-based non-interest income growth, acceleration in loans growth and
improvement in NIM.
§ Deposit franchise also continued to be strong (growth ahead of industry
average) which will ensure healthy NIM.
§ Guiding for sustainable low credit charge.
§ Asset quality improvement unabated with ratios now better than industry
and LLC above 100%, both for the first time.
§ Capital also robust and in top quartile.
§ Dividend quantum and payout ratio expected to increase.
§ Maintain Buy and target price of RM3.65.
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