Banks in Malaysia are considered better governed, as in having strict rules in credit risk policy (adapting Basel II, Basel III). Unlike some other banks in other countries, where the banks over borrowed, and ended up kaboom when there is not enough of cash to turnaround.
It is also part of the rules set by BNM for banks to adhere to, which is a good point for investor to place their money in banking institute in Malaysia.

BIMB is a good start for new entry investor (Considering the capital needed is still small compared to other more matured banks.)

Affin is also heading for a good start recently. They had been making good profits since internal management changed (for the better). There will be a lot of prospect in Affin as they continue to grow overseas.

Good analysis

BTW, Affin is still trading at Price/Book Value of 1x, others are of 2x. Expanding into Indo markets.

BIMB 's Price/book value is good too.

This post has been edited by SKY 1809: Jan 15 2011, 01:18 PM

bought in again 1.52
hope for the best to all of us next week!

Interesting comment from Dali :-

Affin - denied by CIMB and Affin, bottomline Affin will have to merge with someone within 6 months, bottomline, its still cheap ... single girl at a party with drunks, action not over yet.



This post has been edited by SKY 1809: Jan 15 2011, 05:02 PM

Hi brother stranger83, I got qute a number of BIMB & Affin shares....bought both last year with BIMB at $1.20+ & Affine at $3.11+.......still I am not running as I still see more upswing later on, so I am expecting more returns on my investment. Brother stranger83, worry not too much about these 2 banks share prices going down temporary.......profit taking as usual. I bought into these 2 banks as they are the cheapest banks shares to buy & with good potential too.......maybe I bought into these 2 banks as I want to be a "Ah Long"....yes, Banks are LICENSED AH LONG.


As it is, my investment on these 2 counters had bring me returns of 5 figures $$ & I am still waiting for more returns.


One more thing is this......the top management in Affin had said that Affin takes over other banks and NOT THE OTHER WAY AROUND [to be take over by others].......yes, nothing is impossible. Figure this yourself......this........the biggest shareholder of Affin & Boustead is both the Lembaga Tabung Angkatan Tentera (LTAT) & it seems that Boustead still owes BIMB plenty of money.......so could there be something going on between these 2 banks?


One more thing, Malaysia is to become the Islamic Bank Center of South East Asia if not Asia & Bank Negara is issue 2 more Islamic Banking licenses to foreigners, yes foreigners, this year & these foreigners who wants to operate an Islamic Bank in Malaysia must have a mininum paid up capital of USD$1Billion & BIMB had only about US$300 million......then BIMB will be a much smaller Islamic Bank compare to these 2 foreigner Islamic Bank. Can it survive with it's small capital when these 2 bigger foreign Islamic banks are here?......no, I suppose not & will the Government allow it to fall too, I guess not too . So what else but to find a partner sooner than you think.


Now Maybank had it's hands full with Kim Eng, Hong Leong hands full on EON, Public Bank maybe merger with Hong Leong......so left with which bank, CIMB, Affin, RHB? .....or perhaps BIMB had to seek a foreign partner to buy into it. As it is, in the latest BIMB announcement on Wednesday, 12 Jan 2011 that FOREIGN OWNERSHIP IN BIMB HOLDINGS BERHAD now stands at 1.24% & so still have plenty of room to reach 30% for foreigner ownership.........so, maybe BIMB tied up with a Malaysian Bank or Foreigners?


Yes, all Malaysian Banks had ISLAMIC BANKING but not one had 100% Islamic Banking.


Bank Islam Malaysia Berhad : The First Islamic Bank in Malaysia

Bank Islam started operations in July 1983 as Malaysia’s first financial institution to operate based on Shariah compliant principles. Since then, Bank Islam has become synonymous with Islamic banking in Malaysia. As the flag-bearer for the country’s Islamic financial services industry, its vision is to be “The Global Leader in Islamic Banking”.

With an initial authorized capital of RM500 million and a paid-up of RM80 million, the bank embraced the huge challenge of breaking new ground. Its authorized and paid-up capital was increased to RM2 billion and RM563 million respectively, over time, to accommodate the growth of its assets and the expansion and growth of its operations.

With a network of 90 branches nationwide, the bank parades a comprehensive list of more than 50 innovative and sophisticated Islamic banking products and services, comparable to those offered by its conventional counterparts.

The Shariah-compliant banking products and services also expanded from the traditional savings and investment types to include leasing, stock broking, unit trust management and treasury related products, catering to the personal and commercial needs of Muslims and non-Muslims alike.

Being a pioneer, Bank Islam played a leading role in promoting the expansion of Malaysia’s brand of Islamic financial services to markets in the region. As a result, the Bank Islam has become a well-established and well-received brand.


..........just my 2 cents worth.



Cheers to all.....much love.

This post has been edited by monkeyking: Jan 15 2011, 08:35 PM

Highly recommended for low risk, mid-long term investor.
Excellent growth prospect in the future...

Your analysis is kinda interesting .

BTW, statement from CIMB forbids CIMB from taking over Affin for the next 6 months, under the new M & A law.

On the other hand, careful words from Affin top people like " yes, nothing is impossible " does not prevent them from merging with other banks.

So, words may tell their intentions are up to, at least they are careful and trying not to be barred by M & A regulations.

thank you very much monkeyking...
will follow close these 2 counters

What do u guys think of this chart? can still go up?
im planning to accumulate abit, TP duration around 2-3 weeks.
your view is very much appreciated.
thx

Just wait for confirmation before accumulation. It could go down further. Wait till reversal with bullish candle or form higher low

Hold on to your BIMB shares.......today shed 3 cents because of profit taking....nothing much to worry or fear.



Another positive thing to let you know is this........today the major Chinese newspaper highly recommended BIMB shares to it's investor readers.



There will definately be more upswing when things settle down.......so be calm & cool & you will be rewarded sooner than you think.



Cheers to all.......good luck too on your investment.

celaka stock....
till now also din zoom towards...RM2...

keep drop only...should have dispose tat day at 1.70...
then can buy back today....

1.5 i wish to buy.. scare they eat $ only.. ask u knw... sensitive

Hold on to your shares.......just received some news from a friend [don't know how true is this rumour] that BIMB may be privatised.

MonkeyKing, I hope u're genuine. U've been promoting this Ctr here and in Investlah for some time already. Im a late comer and went in at 1.53. I really hope this Ctr will move up soon.

I will enter this friday if can hit my queueing price. RM 1.50. I believe this bank will surge up soon with the news that Malaysia is planning to be the centre of Islamic banking.

Brother Novice76, I am 100% genuine....no doubt about it. Since the day I bought BIMB shares, I had yet to dispose any single share. In fact, I add more yesterday even though it increases my average buying price. As I had said, I bought BIMB shares at 1.20+ last year & now with more buying yesterday, I had in fact increase my average buying price.


Have faith in this counter my friend & I am sure you will not be diasppointed.......now may I ask you which listed bank share price is so cheap & undervalue......brother, please take a good look at this figures.....NTA $1.36, Revenue [15 months] $2.074 Billion, Profit/Loss After Tax and Minority Interest $323.757 million, EPS [Basic Earnings Per Shares] 15.98 cents......& yet trading at $1.49 last.


Now compare Affin Bank, my other banking shares besides Ambank,,,,,,,,NTA $3.46 , Revenue $1.652 Billion, Profit/Loss After Tax and Minority Interest $323.757 million, EPS [Basic Earnings Per Shares] 24.23 cents......& yet trading at $3.50 last. ....still very cheap too.


So you can see Affin Bank EPS is only about 34% more than BIMB.......now see the last price ...BIMB $1.49 Affin 3.50 [Affin Bank TP as quoted $4.10]......so what should BIMB share price be actually?


Now you do your homework & compare the above details with other listed banks & their last price.



Cheers brother Novice76, happy investing & good luck too......take care too brother Novice76.

Well said brother andrewckj, Malaysia is very seriously promoting Islamic Banking & also to be the world Islamic Banking Center....mind you Bank Negara had just recently said that 2 MEGA ISLAMIC BANKING LICENSE WILL BE ISSUED TO FOREIGNERS.


So, you should NOW concentrated on Islamic Banking shares more than conventional banking.


As I had said earlier in my reply here, BIMB is a 100% Islamic Bank while other banks had just a Islamic banking department........


BIMB has this...


Basic Savings & Current Account-i
Al-Awfar
Wadi Savings Account
Ijraa Savings Account
Pewani Savings Account
Wadiah Savings Account
Mudharabah Savings Account


Bank Islam offers the Current Account facility for safe custody of your cash. This facility, which is based on the Wadiah contract, enables you to wisely plan your monthly expenditure and allows you to manage your financial needs without involving cash.

Bank Islam offers the unique Mudharabah Savings Account facility. This facility is based on the Mudharabah contract, which entails the concept of profit sharing. You will enjoy the profit gained from investment according to previously determined ratio.


General Investment Account

Bank Islam offers the General Investment Account-i facility for you to gain maximum profit through your investment. This facility, which is based on Mudharabah contract, prescribes you as the provider of capital and the Bank as the entrepreneur. Profit gained from the investment will be shared between both parties according to previously determined ratio.



Sakinah Investment Account

Specially for retirees and those who have some “reserves” to invest. Sakinah Investment Account-i provides you an opportunity to enjoy higher profit sharing ratio as well as hassle-free Bank Islam Card and Consumer Financing Package at an attractive rate.



Bank Islam emerged as Malaysia’s maiden Shari’ah-based financial institution since its establishment in July 1983. Bank Islam has become the symbol of Islamic banking in Malaysia since then and its vision to be “The Global Leader in Islamic Banking” illustrates its status as the flag bearer of the country’s Islamic financial services industry (“the industry”).

From only RM80 million initially, Bank Islam’s paid-up capital swelled to RM1.73 billion as at June 2009, which was instrumental in making possible the growth of its assets and the implementation of its expansion programmes.



Through a vast growing network of 112 branches and more than 800 self-service terminals nationwide, Bank Islam parades a comprehensive list of more than 50 innovative and sophisticated Islamic banking products and services, comparable to those offered by its conventional counterparts.



From the traditional financing, savings and investment types of products exclusively for individual customers in the early years of establishment, the range of Bank Islam’s Shari’ah-based financial products, services and business solutions has significantly expanded to cater to the fast-changing financial needs of customers from all categories including those related to micro financing, wealth management, capital market, treasury and structured products.



Being the pioneer in the industry, Bank Islam has played a leading role in promoting the expansion of Malaysia’s brand of Islamic finance into other markets, especially in the region. This has helped develop Bank Islam into a well-established and universally recognised brand. As the number of local and global financial services continues to increase, Bank Islam remains keenly aware of the pioneering role it must continue to play.



In recognition of its pioneering role, Bank Islam was awarded the Reader’s Digest Platinum Award for being the Most Trusted Brand for Islamic Financial Services for two consecutive years. With the entrusted belief, Bank Islam is on its way in becoming “The Global Leader in Islamic Banking” and continues to remain guided by the excellent pioneering work by its predecessors, Malaysia’s ambition to be the international Islamic financial hub, the success of its turnaround efforts and the challenge from its competitors.



Yes, 112 branches nationwide & still growing. ...........just remember this word ISLAM in Bank Islam Malaysia......this word is so powerful to attract all Muslims in Malaysia if not the other Islamic countries.


Cheers to all....so think it over, my friends. Happy investment....much love.



This post has been edited by monkeyking: Jan 20 2011, 03:19 AM

should do the research yourself bfore parting with your money.
Dont only rely on others to do research 4 u
ur money, ur responsibility
if it goes south, not Monkey King's fault.
he has faith in this counter (so do I), but do you?

short term, may not go beyond 1.7, but long term, I pray it goes beyond rm3

I agree and see the reasons why you should support these two banks.

Personally for me, as in the past and still presently, I prefer to invest in undervalued small capital stocks ( including these 2) though these stocks , or rather many do not attract most analysts attraction to write something good about them.

In fact, it is quite scary to see many analysts upgrading some fat chips like Gamuda with a fair value of PE 30X, and on the other hand , sad to see some aggressive selling by some big shareholders( Gamuda ) are going on. If you visit Bursa web, you would know what I mean.

Though many analysts shy away from these undervalued small caps, I would continue to pick these up.

I have personally been rewarded with good return from small cap like Mitra, and I know many more ( like these 2 banks ) could be on the way.

I also like Sapuracrest and Kencana ( some times back ) , highlighted them in their earlier stages of transformations ( like what you do now ), though many investors poured cold water on them ( or rather on me ) . Now Kencana is top rated in less than a year period. Sapuracrest is 2 to 3x from where we first brought out the subject matter ( can be verified in Sapuracrest thread if you want )

All the best to you, brother and thanks for updating us always.

This post has been edited by SKY 1809: Jan 20 2011, 10:12 AM