Datuk Wan Razly’s efforts to transform Affin Bank into a stronger entity, part of which involved the lender having to divest some of its noncore assets, have put him in the news this year.
The 51-year-old joined the country’s second-smallest of eight banking groups in April 2020 and wasted no time in pushing through moves to build up its brand, strengthen its balance sheet – a source of many of its past problems – and invest in technology. This year, in a landmark deal, the bank sold its entire 63% stake in Affin Hwang Asset Management Bhd (AHAM) to private equity firm eve Capital Partners for RMl.42 billion in cash.
The divestment, which was completed in late July, enabled Affin Bank to boost its capital ratios and provide much-needed capital to fuel the growth of its fast-growing Islamic banking subsidiary. It was also later able to declare a special dividend of 18.09 sen per share, bringing cheer to shareholders.
Later in the year, the bank sold part of itsholdings in its insurance business to Generali Asia NV. The move will result in Generali becoming its new joint-venture partner for their merged general insurance business – now the country’s second largest – while its old partner,AXA, exited in the process.
Investors, taking note of the once-sleepy bank’s improved numbers and expecting bumper dividends, drove up its share price strongly this year. As of Dec 15, the stock had gained about 34.9% year-to-date to RM2, among the highest YTD gains among banks. Datuk Wan Razly, a former director of Synergy Drive Sdn Bhd – the special purpose vehicle set up to undertake the 2007 mega-merger between Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd will be watched for whether he can sustain the bank’s positive momentum amid a bleaker economic outlook.
Investors especially want to see how he will fill the substantial earnings hole left by AHAM.
Article from The Edge, Newspaper / Magazine Publication dated 26 Dec 2022 – By Adeline Paul Raj
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