Affin Bank Berhad | Annual Report 2020

228 ORGANISATION EXECUTIVE SUMMARY CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION BUSINESS STRATEGY MOVING FORWARD (CONTINUED) AFFIN Hwang Capital will continue to operate in a challenging external environment in 2021 caused by the Covid-19 pandemic. Although the pandemic will continue to pose a downside risk to global economic recovery, a low interest rate environment stemming from easy monetary policy will continue to boost the securities business. As for the investment bank, an increased focus will be placed on sustainability to strengthen the revenue base, product offering, clientele and asset quality. AXA AFFIN Life insurance (‘AALI’) is focusing on its multi-distribution strategy which includes digitalising traditional channels and service quality to serve its customers. AALI is also focusing on product innovation and efficiencies of Robotics Process Automation (‘RPA’) across the company. AALI will continue to work with partners to provide value added services and those with a ready customer base to build a sustainable InsurTech ecosystem to penetrate the mass affluent and emerging customer market segment. AXA AFFIN General Insurance’s focus for 2021 is centered on building a sustainable business portfolio to ensure sustainable profitability and expanding its market share in the preferred segments amidst challenges faced by the market locally and globally arising from the impact of the present Covid-19 pandemic. RATING BY EXTERNAL RATING AGENCY The Bank has been rated by the following external rating agency: Name of rating agency : RAM Rating Services Berhad (‘RAM’) Date of rating : 3 August 2020 Rating classifications : Long-term : AA 3 Short-term : P1 RAM has reaffirmed the Bank’s long-term and short-term financial institution ratings, at AA 3 and P1, respectively, with negative outlook. ‘AA’ rating is defined by RAM as an entity which has a strong capacity to meet its financial obligations and is resilient against adverse changes in circumstances, economic condition and/or operating environment. The subscript 3 in this category indicates as the lower end of its generic rating in the AA category. A P1 rating is defined by RAM as obligations which are supported by superior ability with regards to timely payment of obligations. ZAKAT OBLIGATION The Bank’s subsidiary, AFFIN Islamic Bank Berhad (‘AFFIN Islamic’) and AFFIN Hwang Investment Bank are obliged to pay zakat to comply with the principles of Shariah. AFFIN Islamic does not pay zakat on behalf of its depositors. HOLDING CORPORATE BODY The holding corporate body is Lembaga Tabung Angkatan Tentera, a statutory body incorporated under the Tabung Angkatan Tentera Act, 1973. SUBSIDIARIES Details of subsidiaries are set out in Note 17 to the financial statements. DIRECTORS’ REPORT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020