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Kuala Lumpur, 29 July 2010 - Alliance Financial Group Berhad (AFG) comprising Alliance Bank Malaysia Berhad (ABMB) and its subsidiaries aims to deliver sustainable underlying growth in the upcoming financial year by leveraging on its strong asset base and continuing on its transformation journey.
Datuk Oh Chong Peng, Chairman of Alliance Financial Group Berhad, said, "The financial year ended 31 March 2010 was a year which saw the Group performing admirably amidst challenging global conditions that impacted the local operating environment. Our strong senior management team, robust risk management and ongoing initiatives helped to deliver good results."
The Group reported:
- profit before taxation of RM408.9 million for the financial year ended 31 March 2010, an increase of RM105.6 million or 35 per cent from the previous financial year;
- total net income for the year grew to RM1.06 billion in the year under review from RM1.05 billion previously, on the back of a 9.3 per cent growth (to RM21.4 billion) in gross loans and advances;
- gross loan provisioning coverage as at 31 March 2010 stood at 94.4 per cent compared to 99.7 per cent in the previous year; the change was mainly due to write-back of loan allowances that were no longer required;
- net non-performing loans (NNPL) remained stable at 1.8 per cent;
- gross non-performing loans (GNPLs) improved from 4.5 per cent to 3.8 per cent;
- balance sheet has grown and continues to remain strong;
- well-capitalised with risk-weighted capital ratio (RWCR) at 15.4 per cent (14.6 per cent on 31 March 2009); and
- core capital ratio (CCR) stood at 11.1 per cent (10.3 per cent on 31 March 2009).
The Group declared two interim dividend payments totalling 6.4 sen per share, tax exempt under the single tier tax system, for the financial year ended 31 March 2010. The first interim dividend of 1.3 sen per share was paid on 26 August 2009 whilst the second interim dividend of 5.1 sen per share was paid on 26 March 2010. Profit attributable to shareholders was RM301.4 million, which represents a return on shareholders' funds of 10.5 per cent. The Group's earnings per share improved to 19.7 sen from 14.9 sen previously. The Group will continue to build on existing areas of strength to provide a variety of products that ensure a consistent good return on equity.
Moving into the new financial year, the Group will persist in fortifying its Integrated Risk Management Framework and grow its earnings whilst ensuring a continued high quality credit profile. It will also maintain strong capital and high liquidity levels, and increase its productivity levels and cost efficiencies.
Datuk Oh added, "In meeting the upcoming challenges in 2010 and beyond, the Group is confident of implementing its key strategies. The Group's growth plans will be supported by the strength of the Bank's assets. In particular, we will build on our strong risk capabilities and deepen our relationships with our customers. We will continue to rely on our core businesses of Consumer and SME banking by being single-minded and agile in strengthening our competitive position. We will strive for this by providing better product capabilities, and delivering customer experiences to sustain shareholder value."
"Whilst we see good things ahead due to a more favourable local environment for supporting growth, we are also wary of the uncertainties that exist in the global economy that may impact the performance of our customers and consequently our Group's performance," Datuk Oh concluded.
"Whilst we see good things ahead due to a more favourable local environment for supporting growth, we are also wary of the uncertainties that exist in the global economy that may impact the performance of our customers and consequently our Group's performance," Datuk Oh concluded.
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