Investor Relations


The Affin Bank Group is a financial services conglomerate. The Group's activities focus on commercial, Islamic and investment banking services, money broking and underwriting of life and general insurance business.

Economic Profit/(Loss) Statement

Type

Announcement
Subject AFFIN HOLDINGS BERHAD ("AFFIN" or "The Company")
ECONOMIC PROFIT/(LOSS) STATEMENT

Contents :

Affin Holdings Berhad (“The Company”) would like to announce its economic profit/ (loss) for the 1st Quarter ended 31 March 2006. Please be informed that the information is disclosed on a voluntary basis.


ECONOMIC PROFIT/(LOSS) STATEMENT

INIVIDUAL PERIOD
CUMULATIVE PERIOD
Current Year
Quarter


1Q2006
RM million
Preceeding
Year
Corresponding
Quarter
1Q2005
RM million
CurrentYear
To Date


1Q2006
RM million
Preceeding
Year
Corresponding
Period
1Q2005
RM million
Profit After Tax
Before MI

Economics Charge
Cost of Equity (%)
Total Equity
Economic Charge

Economic (Loss)/Profit
51.1


10.98
3,230.1
88.7


(37.6)
89.5



10.84
3,139.7
85.1


4.4
51.1



10.98
3,230.1
88.7


(37.6)
89.5



10.84
3,139.7
85.1


4.4

Assumptions on parameters used in the Economic Profit/(Loss) calculations

1.) The cost of equity of the company is calculated based on the following formula :-

Cost of Equity = Beta x Market Risk Premium + Risk Free Rate

2.) The Beta used in the calculation is the 5 year adjusted Bloomberg Beta as follows :-

Beta
1st Qtr 2006 1.32
1st Qtr 2005 1.18

3.) The risk free rate is the rate of return of a 10-year Malaysian Government Securities (MGS) at the closing of the reporting period as follows :-

As at Risk free rate (%)
31 Mar 2006 4.12
31 Mar 2005 4.70

4.) The market risk premium is assumed at 5.2% which represents the market return in excess of the return earned on risk free asset.

5.) Total equity is based on the average as at the beginning and end of the reporting period.

 


Announcement Info

Company Name AFFIN HOLDINGS BERHAD  
Stock Name AFFIN    
Date Announced 15 May 2006  
Category General Announcement
Reference No CC-060515-53060