Thursday, November 17, 2011

HLIB Research 17 Nov 2011 (AFG


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.

No comments:

Post a Comment