www.thesundaily.com - KUALA LUMPUR (April 17, 2012): Affin Holdings Bhd, the country's smallest domestic bank, is open to mergers and acquisitions (M&As) but doesn't see itself being swallowed up by a bigger rival.
Due to its small size, the bank is constantly touted as a potential takeover target. But deputy chairman Tan Sri Lodin Wok Kamaruddin said the bank prefers to be the one calling the shots.
"Yes, we are open to M&As as long as we are in the driving seat,'' he told reporters after the group's AGM yesterday.
Following in the footsteps of bigger banks — Malayan Banking Bhd, CIMB Group Holdings Bhd and RHB Capital Bhd — Affin too is looking at Indonesia and other regional markets to fuel future growth.
"We are serious about Indonesia, and we are also looking at Myanmar,'' Lodin said.
But so far, the plan to acquire PT Bank Ina Perdana, first announced two years ago, is still stuck in second gear due to regulatory uncertainties. (source)
Lodin said the bank is still pursuing "active discussion" with PT Bank Ina Perdana and hoped a deal can be sealed as soon as Affin is clear on the guideline on foreign shareholding level in Indonesian banks.
"So far the informal indications are quite positive,'' he said.
Affin is also hoping to be able to start offering Islamic banking services in China together with substantial shareholder Bank of East Asia, pending regulatory approval in China.
However, Lodin was unable to say when this will happen.
In the meantime, Affin is banking on its home market to drive up business. But loan growth rate has faltered from 18% in 2010 to 14% in 2011.
Affin Bank's managing director/CEO Datuk Zulkiflee Abbas Abdul Hamid expects growth to continue to slow to between 10% and 12% this year, amid a challenging economic outlook and a more stringent lending practice.
"We continue to see good loan growth in the first quarter, in line with our target," he said.
Source: http://www.thesundaily.my/news/351454 - April 17, 2012
No comments:
Post a Comment