KUALA LUMPUR (Oct 5): Malaysia's second smallest lender Affin Holdings Bhd is planning to reduce its workforce by as much as 6% or 300 staff as part of its strategy to be an efficient financial entity while improving productivity, said its group chief executive officer Kamarul Ariffin Mohd Jamil.

"At the overall level, the exercise will affect about 300 staff, and hopefully with the inevitable cut, it will create productivity and efficiency," Kamarul Ariffin told theedgemarkets.com on the sidelines of Affin Hwang Capital Conference Series 2017.

"The scheme will be offered towards year-end," he added, noting that Affin has around 4,000 staff at the bank level, and cumulatively, around 5,000 staff at the holding level.

When asked how much will the upcoming job cuts will improve Affin's operating efficiency, Kamarul Ariffin declined to provide a specific answer, only to note that it will "improve over time".

As for the loans growth, Kamarul Ariffin reiterates that Affin is expecting around 5% to 6% this year, supported by various initiatives to improve income.

When asked whether the banking industry is heading for a slower loans growth going forward, Kamarul Ariffin said, "I don't think so."

"We at Affin believe that the loans growth for the bank in the next financial year will be at the very least, at par as to what we chalk in the previous year," he added.