Cautious stance on Affin

PETALING JAYA: Despite Affin Bank Bhd’s latest insurance deal which will see it monetising some of its assets, the market remains cautious on its stock due to concerns surrounding some of its key ratios, including its gross impaired loan (GIL) ratio.

Analysts who track Affin, one of the two smallest banking groups in the country, pointed out that apart from its GIL ratio, which is higher than industry average, its high non-interest income (NOII) mix was also a cause of concern.Kenanga Research, in a report, told its clients that it was “still cautious” on the stock as its high NOII mix could come under threat in the near-term from the normalisation of the local trading landscape.