Affin Bank Berhad, established in 2001, is a Malaysian banking institution focused on providing diverse financial services to both public and private sectors. The bank's mission emphasizes innovative financial solutions while facing challenges such as low brand recognition and competitive industry pressures. A detailed analysis highlights opportunities for growth in private banking and a necessity for improved marketing strategies to enhance brand visibility and market reach.

1. MIOR SAIFUL AZWAN BIN MIOR
SAFIAN

2. Objectives
The completion of such module, the purpose is for:
• Identify and diagnose the problems of such
organization
• Areas that are problematic will be identify in the
areas of strategic
management, marketing, operation, and finance
• Organization performance will be put into
summarized and the future prospect will be
identify

3. Company Overview
• Affin Bank Berhad (AFFINBANK) is an established
banking and financial institution in Malaysia and
fully operated as Bumiputra company
• The company are involves in providing services to
public and private sector in terms of financial
intermediate and investor. Since its incorporation
in 2001, AFFINBANK has provided Malaysia with
vast services in various banking sector such as
Enterprise Banking, Consumer Banking, Debt and
Capital Markets and Hire Purchase.

4. Vision
• A premier partner for
financial growth and
innovative services
Mission
• To provide innovative
financial solutions and
services to target
customers in order to
generate profits and
create value for our
shareholders and other
stakeholders.

5. Company Background
• Affin Bank Berhad (AFFINBANK) commenced and
incorporated in 2001 following the sequence of
event, a merger between the former Perwira
Affin Bank Berhad and BSN Commercial (M)
Berhad in August 2000.
• In June 2005, it merged with the former Affin-ACF
Finance Berhad. Affin Bank Berhad is the wholly
own sunsidiary of Affin Holdings Berhad.

6. Company Registration Name
Affin Bank Berhad
Company Registration No.
25046-T
Date of Incorporation
23rd October 1975
Company address
Head Office, Menara Affin 80, Jalan Raja Chulan,
50200, Kuala Lumpur, Wilayah Persekutuan Malaysia
Authorized Share Capital
RM 2,000,000,000
Paid Up Capital
RM 1,518,336,765
No. of Shares
1,518,336,765
External Auditors
PriceWaterHouseCoopers

7. Board of Directors
Name
Position
Ybhg. Jen (B) Tan Sri Dato’ Sri Ismail Hj.
Omar
Chairman / Non-Independent NonExecutive Director
Ybhg. Dato’ Zulkiflee Abbas bin Abdul
Hamid
Managing Director / Chief Executive
Officer
Ybhg. Tan Sri Dato’ Lodin Wok
Kamaruddin
Non-Independent Non-Executive Director
YM. Dr. Raja Abdul Malek Raja Jallaludin
Independent Non-Executive Director
Mr. Aubrey K.S. Li
Non-Independent Non-Executive Director
Mohd Suffian Haji Haron
Independent Non-Executive Director
Ybhg. Tan Sri Dato’ Sri Mohamed Jawhar
Independent Non-Executive Director

8. Senior Management
Name
Position
Ybhg. Dato’ Zulkiflee Abbas bin Abdul
Hamid
Managing Director / Chief Executive
Officer
En. Shariffudin Mohamad
Executive Director, Operations
En. Amirudin Abdul Halim
Director, Business Banking
En. Idris Abd. Hamid
Director, Consumer Banking
Mr. Tan Kok Toon
Director, Treasury
Mr. Ee Kok Sin
Chief Financial Officer
Mr. Kasinathan T. Kasipillai
Group Chief Risk Officer
Pn. Khatimah Mahadi
Group Chief Internal Auditor
Pn. Nor Rozita Nordin
Chief Human Resource Officer
En. Nazlee Khalifah
Chief Corporate Strategist

9. Macro Analysis: Real GDP by
Expenditure
• Economy performed better than expected in 2012, with a
higher growth of 5.6% (2011: 5.1%). The strong growth was
supported by resilient domestic demand.
• Banking and financial institution, it also experienced good
economic and financial environment whereby, it been
supported through competitive capital spending.
• Consumption activity are strong throughout the economic
period. This was the result from significant expansion in
household income, low inflation, and supportive financing
conditions

10. Macro Analysis: Retrenchment by
Sector
• Employment growth in 2012
amounting to 3.6% as
compared to 2011, 3.2%. In
which, it have accumulated
a total number of new job
opportunities to 438,800.
• Services and agriculture
industry had gain the most
registered numbered of
workforce,
and
the
unemployment rate had
drop slightly to 3% as
compared in 2011 3.1%.

11. Micro Analysis: Malaysia Population
• The total population in Malaysia was last recorded at 28.9
million people in 2011 from 8.1 million in 1960, changing
255% during the last 50 years.

12. Macro Analysis: Savings-Investment
Gap of Private Sector
• Prior to the global
financial crisis, the
surplus of the private
sector was attributable
to both the increasing
savings rate and low
growth of investment.
However, in 2012, as
investment
growing
while savings declined,
the savings-investment
surplus of the private
sector narrowed.

13. Macro Analysis: Savings-Investment
Gap of Public Sector
• Registered a small surplus,
averaging 3.2% of growth national
income, in 2003-2008.
• Deficit in 2009, when public
expenditure increased significantly
following the introduction of the
two economic stimulus packages
by the Federal Government .
• The sustained capital spending by
public enterprises have also
contributed to the expansion in
public investment.

14. Correlation of Malaysia Economic
Overview to AFFINBANK
• Stable economic growth and profound income with low inflation and
supportive public and private investment, it provide vast opportunities for
AFFINBANK to gain advantage by catering their existing and potential
customers with products that suits their needs
• Low inflation rate and also the increasing number of
population, complement with, salary growth, it means that the peoples
will spend more not just on necessity products and goods, but, the
increasing number and trend for peoples to purchase and consume
luxurious products and goods
• Come out with well-planned and structured credit facilities by introducing
attractive rate for credit card holder or extensive marketing campaign that
are able to create amazing rewards for their customers in using or
applying their credit card.
• Increase number of population reflects the massive potential of
employees that AFFINBANK can capitalize

15. PESTLE Analysis
PESTLE Analysis for AFFIN BANK Berhad
Political
1) Political stability can influence the finance and banking industry of
a nation in terms of monetary rate, investment, loan pay-offs
2) Rules and regulations that embodied the industry in terms of
licensing, connection with Ministry of Finance, and BNM
Economic
1)
2)
3)
4)
5)
Moderation in economic growth
The declining rate of inflation
Expansion of private consumption and business spending
Expected continuous income growth
Monetary Policy Committee (MPC) forecast the climbing numbers
for loan demand especially in domestic oriented industries and
Economic Transformation Programme (ETP) project related.
6) Overnight Policy Rate (OPR) expected to remain constant at 3%
until early 2014

16. PESTLE Analysis
Social
1) The increased demand for fast banking and financing services
2) Increased financial transaction via online with the threat of
security breach.
3) The needs for younger generation for banking and financial
products that suits with their lifestyle, such as, rewards and
freebies.
4) The increased rate of young couple that constitute for more
demand in loan, especially, housing and car loan
5) Individuals that are seeking for profitable investment package
such as Gold Investment
Technology
1) Internet Banking
2) Phone Banking
3) Cash Deposit Machine (CDM)

17. Legal
Environment
1) Rules and regulations that govern banking and financial
institution such as Banking and Financial Act 1989
(BAFIA), Hire Purchase Act 1967, Islamic Banking Act
1983
2) The potential evaluation of transforming the KL Regional
Centre for Arbitration into a global arbitration centre.
1) ASEAN central banks have made major headway in
support of economic integration through the ASEAN
Economic Community (AEC). The central bank has
endorsed a high level framework to advanced economic
and financial integration.
2) Investment banking is anticipated to maintain strong
growth of 15 per cent per annum throughout 2010-2015,
before moderating to 10 per cent in 2016-2020.
3) The commercial banking segment is projected to maintain
an annual growth rate of seven per cent over the next 10
years.
4) The asset and wealth management industries are
expected to achieve an average growth of 8% in 20102020.

18. SWOT Analysis
SWOT Analysis for AFFINBANK
Strengths
Weaknesses
1) Catering
to
various
products
segmentation.
2) Vast pool of capital for further
company growth.
3) Years of financial experience for
proven credibility and reliability as a
sound
banking
and
financial
institution.
4) Great degree of appeal to government
sector.
5) Have strong current ratio in meeting
short term financial obligations
1) Competing with identical products to
other banking entities.
2) Weaker brand name as compared to
bigger industry player.
3) Limited facilities in terms of branch
opening and the placement of ATM in
strategic locations.
4) Customer focus orientation, more on
government sector rather than creating
balance target market.
5) Depending on debt to financed their
assets.
6) Conservative in terms of using its
resources to gain and generate more
profitable income.

19. SWOT Analysis
Opportunities
Threats
1) Rise of private banking, especially 1) World economic volatility that may
from high earners group where they
cause economic depression such as
appreciate a certain privileged when
increase in financing rates, the
doing financial transactions.
pluming of monetary currency,
2) Positive salary growth of Malaysian
significant withdrawal of investment
and the big spending habits that they
and etc.
can gain advantage.
2) Intense rivalry between banking
3) The increase number of young
entities that may cause burden to the
population as executives and
bank operating cost that may
technocrats that desire for banking
contribute to industry downfall
facilities that suits their lifestyle such 3) Cyber-crime that can inflict significant
as debit card and loyalty programs.
impact to the banking industry such as
4) Mass
home
development,
fraud, identity theft, and etc.
particularly, luxurious homes that
potential customer needs for loan
financing.
5) New target market segment that can
be venture into.

20. Industry Analysis (5 Porters Forces)
Industry Analysis (5 Porters Forces) on AFFINBANK
Rivalry Among Existing
Competitors
1) Large numbers of banking entities to compete with.
Hence, AFFINBANK has to compete in the same market
with identical products and services for similar target
customers.
2) Low switching cost for customers and clients to move
on to other banking and financial organizations due to
identical range of products and nearly similar products
and services features.
3) Brand awareness is marginal as compared to as rivalry
institution such as CIMB, Maybank, RHB
Threat of Substitute
Products and Services
1) The advent of technological development, most
importantly, internet and phone banking has present
cost threats to banking industry. Nowadays, banking
and financial transactions over the counter are been
replacing by virtual banking services

21. Industry Analysis (5 Porters Forces)
Bargaining Power of
Suppliers
1) Central Bank strict enforcement of regulations that
monitor and limit the power of banking sector
movements. Apart from that, Central Bank is
responsible in determining the rates and the supply of
money. Thus, banking entities have low control over
bargaining due to Central Bank dictates the industry.
Bargaining Power of
Buyers/Customers
1) The bargaining powers of consumers in this particular
industry are very significant due to low switching cost
and vast existence of other banking and financial
entities.
2) Products and services that are been offered to the
public between institutions are identical, thus, create an
advantage for customers to demand and be selective in
choosing their service providers.
Threat of New Entrants
1) In this particular industry, the emerging of new entrants
into the market is low due to highly restrictions and
regulations in awarding banking license to any party.

22. Comparative Financial Statements
AFFINBANK BERHAD COMPARATIVE INCOME STATEMENT FOR THE YEARS ENDED DECEMBER 31, 2012,
2011, 2010, 2009 and 2008 IN RINGGIT MALAYSIA (RM)
2012
RM ‘000
2011
RM ‘000
2010
RM ‘000
2009
RM ‘000
2008
RM ‘000
2007
RM ‘000
Total
Assets
41,676,054 40,070,290 35,453,667 30,333,116 27,730,474
26,233,528
Total
Liabilities
37,881,600 36,718,892 32,340,867 27,522,350 25,150,332
23,824,187
Total
Equity
3,794,454
3,351,398
3,112,800
2,810,776
2,580,142
2,409,341
Net
Income
1,072,539
981,253
989,591
973,084
919,377
857,952
Earnings
Per Share
(sen)
30.0
27.0
24.1
20.05
20.8
14.0

23. Liquidity ratio
Current Ratio
Year
Current
Ratio
2007
1.1
2008
1.1
2009
1.1
2010
1.09
2011
1.09
2012
1.1
As from the results, from the year 2007 until 2012, AFFINBANK experienced a stable
current ratio position whereby, it able to established numerical statistic greater than
1 even though in the year of 2010 and 2011 only a marginal decreased that were not
significant to affect AFFINBANK position in meeting its short term financial
obligations. Overall, AFFINBANK financial conditions in this perspective are sufficient
and adequate.

24. Liquidity ratio
Working Capital
Year
2007
2008
2009
2010
2011
2012
Working
Capital
2,409,341
2,580,142
2,810,766
3,112,800
3,351,398
3,794,454
As from the results above, AFFINBANK shows remarkable working capital statistical
values whereby it able to indicate to pay off its short term liabilities in an instance.
Furthermore, the statistical numerical data also shown that from the year 2007 until
2012, AFFINBANK net working capital has increased from RM 2,409,341 up to RM
3,794,454 in 2012. This will provide them with ample financial resources to expand and
improves their operations.

25. Liquidity ratio
Debt Ratio
Year
2007
2008
2009
2010
2011
2012
Debt Ratio
0.91
0.91
0.90
0.91
0.92
0.90
As from the chart above, it clearly indicates that AFFINBANK debt ratio is almost at 1
and above than 0.5. Thus, it signifies that AFFINBANK company’s assets are mostly
financed through debt. In the perspective of creditors, the lower the debt ratio is the
safer for their options.

26. Measures of Profitability
Return on Assets
Year
2007
2008
2009
2010
2011
2012
ROA
2.13%
2.28%
2.41%
2.45%
2.43%
2.66%
Since the year of 2007 and until 2012, AFFINBANK has recorded a consistent in terms
of return on assets. In the same sense too, it also reflects that AFFINBANK is
conservative in using their assets to grab opportunities that may contribute to larger
and significant profits.

27. Measures of Profitability
Return on Equity
Year
2007
2008
2009
2010
2011
2012
ROE
7.51%
11.62%
10.50%
11.14%
11.59%
11.87%
The results above shows that AFFINBANK managed to used their shareholder’s funds
relatively moderate to generate profit. However, despite the consistency that
AFFINBANK shows from 2008 up until 2012, in 2007, AFFINBANK recorded a much
lower percentage of profit against the shareholder’s contributions.

28. Measures of Profitability
Net Interest Margin
Year
2007
2008
2009
2010
2011
2012
NIM
2.42%
2.44%
2.45%
2.15%
2.24%
1.96%
In the range of year 2007 until 2011, AFFINBANK recorded a very consistent net
interest margin whereby it able to decently make good of their investment decisions.
Unfortunately, by the year 2012, AFFINBANK had experienced a sudden declined in
terms of using their interest expense to gain financial returns due to not optimal
decisions making.

29. Problematic Areas: Strategic Marketing
AREAS
ISSUES
PROMOTION
1) The marketing or promotion strategy
that AFFINBANK strategize can be
considered as weak as compared to
other financial institutions, in this
case:
• promotional efforts are only focus on
advertising through their official
website and the placing of bunting at
AFFINBANK’s various branch. Thus, the
communication of such promotions
are not made in large scale
• The web design is also an important
tool in marketing AFFINBANK brand
awareness. The issue that lies in its
web design are too simple and dull
• Loyalty programs or rewards especially
debit card users

30. Problematic Areas: Strategic Marketing
AREAS
ISSUES
STRATEGIC BRAND MANAGEMENT
2) In the case for AFFINBANK, its brand
awareness or exposure as compared to
other local banking institutions can be
regard as weak. The reasons is as below:
• Promotion efforts that are weak
• Low market reachability due to lack of
branches and ATM machines at
strategic locations
• AFFINBANK market priority mainly for
government sectors
• Customers perception on AFFINBANK
as a small banking institution

31. Problematic Areas: Strategic Marketing
AREAS
ISSUES
MARKETS AND COMPETITIVE SPACE
1.1)Customer Focus
• AFFINANK main focus lies with government
sectors. This is mostly probably its political
connection and attractive rates that
AFFINBANK provides to the government
sector. Political connection here means
that, AFFINBANK major shareholder is
LEMBAGA TABUNG ANGKATAN TENTERA
(LTAT) which might benefits AFFINBANK in
serving for government sectors
• However, this one side focus by neglecting
other institutions such as private sectors
would prevent AFFINBANK to be widely
recognised in corporate banking and will
not be the brand to be considered when
private sectors doing transactions such as
fixed deposit placing or investment.

32. Problematic Areas: Strategic Marketing
AREAS
ISSUES
MARKETS AND COMPETITIVE SPACE
1.2)Competitors
• Due to its nature of business where other
banking institutions are also offering to
individual and corporate customers similar
products and services have create intense
rivalry among banks.
• The existence of many banking institutions
have also established vast options for
clients to choose which service provider
that they will prefer and normally they will
go for a well-established and strong brand
image.
• Large marketing efforts by rivals has
overshadowed AFFINBANK position in the
industry

33. Problematic Areas: Operations
Management
AREAS
BRANCH/CHANNEL OF NETWORKS
ISSUES
1) In the case for AFFINBANK:
• The lack of adequate and sufficient network
of branch has cost this banking institution
its brand equity in this particular industry.
As for example, AFFINBANK branch
nationwide is 100, CimB Bank is 362 and
Maybank is 401. Thus, we can see the
difference in total size of networks of
AFFINBANK relative to its competitors.
• AFFINBANK ATM machines are also limited
in its reachability. As for comparison,
AFFINBANK ATM locations in the federal
territory are only located at 18 places, but
as for other banks such as Maybank, it has
52 location of ATM in federal territory and
for CiMB Bank are 48

34. Problematic Areas: Operations
Management
AREAS
ISSUES
STRATEGIC MANAGEMENT
1) Based on financial ratios that have been
calculated earlier, AFFINBANK can be
summarizing as a moderate risk taker in using
their assets in generating profits. As the
calculation for Return on Assets signifies the
uses of AFFINBANK assets has been
consistently in the range of 2% from 2007 until
2012. There are no sign that AFFINBANK been
aggressive in making optima decisions to gain
more economic performance.
2) Apart from numerical data, other factors
that resemble such similarities of moderate risk
taker is the investment that AFFINBANK made
in expanding their business operations or
increased their market penetration despite
having large total assets and revenue growth
on yearly basis.

35. Conclusion
• In the short term, I am optimistic with the
healthy expansion of Malaysia economic growth
complement with the increased number of high
earners and low inflation that can provide
AFFINBANK a thrust to move on in expanding
their business operations
• In the long term, I am skeptical on how
AFFINBANK will continues to grow and build up
its brand name with other banking institutions if
AFFINBANK still adopt to its current environment