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Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
Half Year Investor Presentation as at 30 September 2012
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Half Year Investor Presentation as at 30 September 2012

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This is the Investor Presentation for the Half Year Results as at 30 September 2012 for Alliance Financial Group Berhad (AFGB).

This is the Investor Presentation for the Half Year Results as at 30 September 2012 for Alliance Financial Group Berhad (AFGB).

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  • 1. INVESTOR PRESENTATION 1st Half FY2013 Results 21 November 2012
  • 2. Contents1 Executive Summary2 Financial Results for First Half FY2013 1
  • 3. FY2013: Business Model Our Business Model remains unchanged: “To Build Consistent and Sustainable Financial Performance”Line of Business Consumer Business Financial Investment Transaction & Alternate Islamic Banking Banking Markets Banking Banking BankingStrategy Revenue: Driving Fee Income through Cross-Selling ROE; CIR  Major Products CONSUMER BANKING BUSINESS BANKING • SME • Mortgage Loans • Wholesale • Wealth Management • Credit Cards • Transaction • Bancassurance • Personal Loans Banking • Advisory • Hire Purchase • Cash Management • Trade Finance • Stock broking • Deposits • Treasury Sales • Investment Banking New Growth Existing Opportunities Existing Opportunities Opportunities 2
  • 4. Progress: Medium Term Targets We are making good progress against our 3-Year Medium Term Targets FY2012 – FY2015 FY2011* 1HFY2013 Asset Quality … gross impaired loans to be better than industry average 3.3% 2.3% Non-InterestIncome Ratio … to increase non-interest income to 30% of total revenue 20.8% 27.2% … move to industry average (45% - 48%) through:Cost to Income • targeted revenue growth 48.3% 47.9% Ratio • improved productivity … achieve industry average (14% - 16%) through: Return on Equity • focus on underlying earnings momentum 13.0% 13.7% • effective capital management Dividend … pay up to 50% of net profits after tax, subject to Dividend Policy regulatory approvals and strong capital ratios 26.2% 40.4% Policy *FY12 3 Note * Figures have not been restated for MFRS139
  • 5. 1HFY13: Key Financial Ratios Performance Overview: Sustainable Profit Growth 1HFY13 1HFY12 Change Q2FY13 Q1FY13 (Restated)Profitability/ Efficiency RatioNet Profit After Tax RM266.5 m RM254.3 m +4.8% RM141.9 m RM124.6 mEarnings Per Share 17.5 sen 16.6 sen 0.9 sen 9.3 sen 8.2 senNet Assets per Share RM2.52 RM2.37 15 sen RM2.52 RM2.51Return on Equity 13.7% 14.3% -0.6% 13.7% 13.0%Return on Assets 1.3% 1.3% - 1.3% 1.2%Non-Interest Income Ratio 27.2% 25.6% +1.6% 27.0% 27.3%Cost-to-Income Ratio 47.9% 46.3% +1.6% 45.5% 50.5%Note: Restated for MFRS, where applicable  Improved net interest income due to loans growth  Sustainable growth in non-interest income, including treasury income  Cost to income ratio improving. Continued investments in technology to build capacity for future growth 4
  • 6. 1HFY13: Key Financial RatiosStrong Loans Growth at 13.6%, Improved Asset Quality, CASA at 34.5% and Healthy Capital Ratios 1HFY13 1HFY12 Change Q2FY13 Q1FY13 (Restated)Balance Sheet & Asset QualityNet Loans Growth (y-o-y) 13.6% 8.6% +5.0% 13.6% 14.2%Gross Impaired Loans Ratio 2.3% 2.7% -0.4% 2.3% 2.4%Net Impaired Loans Ratio 1.2% 1.5% -0.3% 1.2% 1.3%Loan Loss Coverage Ratio 86.4% 88.5% -2.1% 86.4% 86.6%Liquidity & Capital RatioCASA Ratio 34.5% 34.8% -0.3% 34.5% 35.6%Loan to Deposit Ratio 82.8% 77.4% +5.4% 82.8% 81.8%Risk Weighted Capital Ratio 15.18% 15.83% - 0.65% 15.18% 14.7%Core Capital Ratio 12.08% 11.99% + 0.09% 12.08% 11.6% Note: Restated for MFRS, where applicable  13.6% loans growth - targeting profitable consumer and SME segments  Improving asset quality with proactive & disciplined credit risk management  Maintained strong CASA ratio at 34.5%  Raised loans to deposits ratio to 82.8% for efficient balance sheet management  Capital ratios well positioned for Basel 3 and balance sheet expansion 5
  • 7. Key Financial Ratios Improving Financial Performance, with Key Metrics in the Right Direction Return On Equity Return on Equity Non-Interest Income Ratio Non-Interest Income ratio 13.6% 14.0% 13.7% 28% 27.0% 26.8% 27.2%14% 13.0% 26%12% 10.5% 24% 22.4% 22.4%10% 8.6% 22% 20.8%8% 20% FY2009 FY2010 FY2011 FY2012 1HFY2013 FY2009 FY2010 FY2011 FY2012 1HFY2013 CASA Ratio CASA Ratio Cost-to-Income Ratio Cost To Income Ratio 45% 54% 53.0% 41.5% 52.1% 40% 52% 34.5% 34.8% 50% 34.0% 33.7% 48.3% 47.9% 35% 33.0% 33.3% 47.6% 48% 47.3% 30% 46% FY2009 FY2010 FY2011 FY2012 1HFY2013 FY2009 FY2010 FY2011 FY2012 1HFY2013 FY2012 restated for MFRS139 6
  • 8. Summarised Income Statement 1H FY2013: Building Base for Recurring Growth in FY2014 1HFY13 1HFY12 Change 2QFY13 1QFY13 RM mil RM mil RM mil %Net Interest & Islamic Banking 489.0 468.0 21.0 +4.5% 252.0 237.0IncomeNon-Interest Income 169.3 152.3 17.0 +11.2% 86.9 82.4Net Income 658.3 620.2 38.1 +6.1% 339.0 319.3Operating Expenses 315.4 287.1 28.3 +9.9% 154.3 161.1Operating Profit 342.9 333.1 9.8 +2.9% 184.7 158.2Write-back of loans and 16.3 8.7 7.6 +86.5% 7.0 9.3impairment provisionsPre-tax profit* 357.1 341.0 16.1 +4.7% 190.8 166.4Net Profit After Taxation 266.5 254.3 12.2 +4.8% 141.9 124.6Income Expenses Moderate growth in net interest Impairment Provisions  Drop in expenses, despite growth in  Net write back due to income, Islamic banking and non- business operations and loans interest income recoveries, despite strong loan growth * Include share of results of associate 7
  • 9. FY2013 Business Focus FY2013 Business Plans focus on: Our Aspirations How? Implemented in FY2013 Generate recurring revenue  Re-organised Business Banking for To Build from existing/new accelerated SME growth “Consistent & business, within our riskSustainable Financial appetite  Re-commenced hire purchase business Performance” Enhancing cost efficiency &  Centralise functions and improve productivity processes via process re-engineering Building infrastructure to  Upgraded internet banking platform support operational & execution  Implemented new integrated MIS and To Deliver capabilities finance infrastructure“Superior CustomerService Experience”  Formulating branch distribution strategy Delivering excellent customer to provide seamless customer service service and experience across all customer touch points Reinforcing governance and  Enhancing risk management framework compliance oversight for ICAAP complianceTo Develop “Engaged  Launched new vision, mission and coreEmployees with Right Reinforcing the right values & values Values” inculcating a performance  Continue to build a strong performance culture culture, to retain and attract best talent 8
  • 10. Transaction BankingLaunched our „Next Generation‟ Online Banking for Business – “BizSmart Online Banking” New Name & Logo Product Bundle • Bundle of New Online Banking, CASA, Business ATM Card and Business Credit Card Marketing Concept • “More of You” proposition – efficiency so that the business owner can concentrate on growing their business Small businesses can now have access to Cash Management Services 9
  • 11. Contents1 Executive Summary2 Financial Results for First Half FY2013 10
  • 12. Net Income Steady growth in net income driven by higher loans growth RM mil Net Income Trend Net Income14001300 1,244.3 RM mil1200 1,128.7 658.31100 1,054.8 1,064.5 650 620.21000 600 900 573.2 800 550 700 658.3 600 500 500 400 450 300 200 400 FY2009 FY2010 FY2011 FY2012* 1HFY2013 1HFY11 1HFY12 1HFY13  Net income growth of RM38.1million or 6.1% 1HFY13 vs 1HFY12 1HFY12 vs 1HFY11 driven by: + RM38.1 mil + RM47.0 mil + 6.1% + 8.2%  +RM53.8 million from 13.6% y-o-y loans growth 2QFY13 vs 2QFY12 2QFY13 vs 1QFY13  +RM17.0 million from non-interest income + RM25.8 mil + RM19.6 mil  Offset by +RM21.0 million increase in interest + 8.2% + 6.1% expense from expansion in deposits Note * : Restated for MFRS 11
  • 13. Net Interest Margin Some contraction in interest margin but cushioned by strong CASA & rise in LD ratio  YTD margin compression 8 bps NIM and Cost of Funds Trend due to:3.0% NIM COF  New mortgage loans at lower 2.8% yield 2.7% 2.7%  Run-off of high yielding Co-op2.7% loans 2.5% 2.5% 2.5%  Price competition for loans2.4% 2.5% and deposits  Margin pressure partially offset 2.3% 2.3% by rise in loans to deposits ratio2.1% 2.2% from 77.7% at March 2012 to 2.1% 82.8% in September 20121.8% 1.9% Effective OPR SRR June 2010 2.50% 1%1.5% July 2010 2.75% 1% FY2009 FY2010 FY2011 FY2012 1QFY2013 2QFY2013 April 2011 2.75% 2% May 2011 3.00% 3% July 2011 3.00% 4% 12
  • 14. Non-Interest Income Non-Interest Income expanded by 11.2% Y-o-Y Non-Interest Income Trend Non-Interest Income Non-Interest Income NII/ Total Income RM mil RM mil 200 27.0% 27.2% 30% 169.3400 152.3 150 22.4% 25% 22.4% 20.8% 320.2 115.6300 20% 100 235.0 233.2 225.7 15% 50200 169.3 10% 0100 1HFY11 1HFY12* 1HFY13 5% Non-Interest Income Ratio: 20.9% 25.5% 27.2% 0 0% FY2009 FY2010 FY2011 FY2012* 1HFY2013  Continuing to build recurring non-interest income from treasury sales, wealth 1HFY13 vs 1HFY12 1HFY12 vs 1HFY11 management and trade finance +RM17.0 mil RM36.7 mil + 11.2% + 31.8%  2QFY2013 included RM5.8 million from gain on sale of building (non-recurring) 2QFY13 vs 2QFY12 2QFY13 vs 1QFY13 + RM13.9mil RM4.6 mil + 19.0% + 5.6% Note * : Restated for MFRS 13
  • 15. Non-Interest Income Building Recurring Fee Income and Sustainable Investment Income 1HFY2013 Growth Non-Interest Income Composition (1HFY2013) RM mil Fee Income Investment Income Other Income 180.0 Other 160.0 17.0 Income 10.5 10.0% 140.0 120.0 68.4 7.2 +10.3% 62.0 Commission 100.0 +93.3% 20.9% 32.1 80.0 Investment 60.0 Income +4.6% +5.2% 83.9 40.0 76.3 79.8 40.4% Fee Income 28.7% 20.0 0.0 1HFY11 1HFY12 1HFY13  Growth from commissions from trade finance, treasury sales, wealth management and transaction banking  Investment income growth moderated due to flatter yield curve. Investment securities mainly in Government securitiesNote: Investment income is inclusive of realised and unrealised gain/loss reflected under other income, as this relates to treasury activities 14
  • 16. Operating Expenses Cost-to-income (“CIR”) dropped to 47.9% in 1HFY2013 from 50.5% in first quarter RM mil Operating expenses trend %900 Operating expenses CIR 60 OPEX 1HFY13 1HFY12 Variance 53.0% 52.1% RM mil RM mil800 48.3% 47.6% 47.9% RM mil % 50700 Personnel costs 207.1 182.0 25.2 13.8% 591.8 73.2 72.0 1.2 1.6%600 559.4 554.6 544.9 40 Establishment costs500 30 Marketing 9.8 9.0 0.8 8.7%400 expenses 315.4300 20 Administration 25.3 24.1 1.2 4.8%200 expenses 10 Total 315.4 287.1 28.4 9.9%100 0 0  Higher operating expenses as the Group continues FY2009 FY2010 FY2011 FY2012* 1HFY2013 to invest in human capital and IT infrastructure to 1HFY13 vs 1HFY12 1HFY12 vs 1HFY11 support the business growth + RM28.3 mil + RM25.9 mil  Personnel cost at 65.7% of the total remains the + 9.9% + 9.9% main operating cost 2QFY13 vs 2QFY12 2QFY13 vs 1QFY13  Cost-to-income ratio dropped to 45.5% in 2nd +RM11.2 mil -RM6.9 mil quarter, down from 50.5% as at June 2012 + 7.9% -4.3% Note * : Restated for MFRS 15
  • 17. Asset Quality Gross impaired loans ratio improved to 2.3% Net impaired loans ratio improved to 1.2% from 1.8% Gross Impaired Loans Ratio Net Impaired Loans Ratio(%) 4.5 1.8 (%) 3.8 1.5 1.4 1.4 3.3 1.3 1.2 2.5 2.3 FY2009 FY2010 FY2011 FY2012 1HFY2013 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 1HFY13 vs 1HFY12 2QFY13 vs 1QFY13 1HFY13 vs 1HFY12 2QFY13 vs 1QFY13 - 0.4% - 0.1% - 0.3% - 0.1% Despite challenging external environment, further improvement in asset quality with disciplined approach in credit risk management and collection processes 16
  • 18. Impairment Provisions Improvement in Asset Quality – results in drop in impairment provision charge and Loan Loss Coverage required MFRS 139: Net Write Back/(allowances) for Loan Loss Coverage Loans & Impairment ProvisionsRM mil 20 99.7% 17 16.3 94.4% 14 11 90.1% 8.7 87.7% 86.6% 8 86.4% 5 Provision charge 2 22.9 -1 1HFY11 1HFY12 1HFY13 -4 FY2009 FY2010 FY2011 FY2012 1QFY13 2QFY13 Note: CLO recoveries amounted to RM0.5 million in 1QFY13 (Nil in 2QFY13).  2QFY13 loan loss coverage ratio is computed based on the adoption of MFRS 139 Collective Assessment using PD & LGD model, replacing 1HFY13 vs 1HFY12 1HFY12 vs 1HFY11 BNM’s Transitional Provisioning of 1.5% + RM7.6 mil + RM31.0 mil +86.5% + >100%  Net write back of impairment provisions during quarter due to recoveries, despite setting aside additional collective provisions for loans growth 17
  • 19. Customer Type: Composition of Portfolio Funding and Lending: Clear niche in Consumer and SME Customer Segments Individuals account for 49.6% of customer deposits, and 54% of loans portfolio. Deposits Composition Loans Composition Domestic Others financial SME 6.3% Institutions 22.3% 2.4% Govt. &statutory bodies 4.2% Individuals Business Business enterprises 49.6% Individuals enterprises 23.7% 54.0% 37.5% 18
  • 20. Gross Loans Gross Loans growth momentum has accelerated to 13.2% Balanced Loans Portfolio: 54.0% Consumer & 46.0% from Group Business Banking Gross loans, Advances and Financing Trend Loans Composition by Business SegmentsRM bil30 Consumer SME25 Wholesale 26.6 100% 25.020 22.4 23.0% 22.5% 23.6% 24.2% 23.7% 21.4 80%15 19.6 21.4% 20.7% 21.3% 21.9% 22.3% 60%10 40% 5 55.6% 56.8% 55.0% 53.9% 54.0% 20% 0 FY2009 FY2010 FY2011 FY2012 1HFY2013 0% FY2009 FY2010 FY2011 FY2012 1HFY13 1HFY13 vs 1HFY12 1HFY12 vs 1HFY11 + RM 3.1 bil + RM1.7 bil  Medium term target portfolio : 50% Consumer; 50% + 13.2% y-o-y + 7.6% YTD Business Banking  Consumer now at 54.0%, down from high 56.8% in FY10  Minimal exposure to fixed rate lending – 10% of total portfolio 19
  • 21. Loans Growth: SME & Residential Property Both SME & Residential Properties registered above 17% Loans Growth Loans Growth for SME Loans Growth for Residential PropertyRM bil RM bil7 16.6% 20.0% 14 32.9% 40.0% 14.4%6 8.0% 12.6% 20.0% 5.9% 10.0% 12 8.1% 8.7% 1.9% 5.9 3.1%5 5.5 0.0% 5.1 0.0% 10 10.6 4.8 9.84 4.4 -20.0% 4.2 -10.0% 8 9.0 8.4 8.73 -40.0% 7.7 -20.0% 62 -60.0% -30.0% 41 -80.0%0 -40.0% 2 -100.0% FY2009 FY2010 FY2011 1HFY2012 FY2012 1HFY2013 FY2009 FY2010 FY2011 1HFY2012 FY2012 1HFY2013 1HFY13 vs 1HFY12 1HFY13 vs 1HFY12 +RM 0.9 bil +RM 1.6 bil +17.5% +17.6% 20
  • 22. Composition of Loans Portfolio Well Diversified & Secured Loans Portfolio Loans Composition by Economic Purposes  39.9% of loans portfolio is for residential properties Purchase of other fixed  13.4% for non-residential Purchase of assets properties residential 0.4% property 39.9%  24.0% for Working Capital Others financing Construction 6.5% 1.2%  Overall loans portfolio well collateralisedPurchase of transport  Commenced growing hire purchase vehicles Working 2.2% capital portfolio in April 2012, focusing on Personal use 7.5% 24.0% new car financingPurchase of securities  Hire Purchase: Positive growth 2.6% Credit card Purchase of YTD of RM26.9 million 2.3% non-residential property 13.4% 21
  • 23. Customer Deposits Loans to Deposits Ratio Raised to 82.8%. Target LD Ratio is 85% in Medium Term. Customer Deposits Trend Loans to Deposit Ratio Trend (%) RM bil % 95 30 90.6 32.2 32.1 90 25 28.3 85 82.8 25.6 80 78.8 77.7 20 76.4 23.6 75 15 70 65 10 60 5 55 0 50 FY2009 FY2010 FY2011 FY2012 1HFY2013 FY2009 FY2010 FY2011 FY2012 1HFY2013 Deposits growth of RM1.7 billion or 5.7% y-o-y  Loans to deposit ratio (LD ratio) remained Selective in raising cost efficient fixed deposits healthy at 82.8% in 1HFY13, well below industry average 22
  • 24. Composition of Customer Deposits Steady growth in CASA deposits to RM11.1 billion, accounts for 34.5% of total deposits RM bil CASA trend 2QFY2013: Composition by type of Deposits35 DD SA FD NID, MMD, SD Negotiable Structured instruments deposits of deposits 0.6%30 2.4% 5.7 5.5 Money Demand 4.1 market deposits25 deposits 29.3% 3.0 1.6 14.3% Fixed/ Saving20 investment deposits 15.6 15.5 deposits 5.1% 14.6 48.3%15 14.1 12.2 CASA ratio 45.0%10 1.7 1.7 41.5% 1.7 1.6 1.6 9.6 10.8 11.1 40.0% 5 8.4 9.8 8.1 8.0 9.1 9.4 34.0% 6.8 35.0% 33.0% 33.7% 34.5% 0 FY2009 FY2010 FY2011 FY2012 1HFY2013 30.0%  CASA deposits expanded by RM300 million to RM11.1 billion. 25.0%  49.6% of deposits from individuals FY2009 FY2010 FY2011 FY2012 1HFY13 23
  • 25. Profit Before Tax Growth of 4.7% Y-o-Y; but up 14.7% over 1st Quarter FY13. Profit Before TaxRM mil Profit Before Tax 1HFY11 1HFY12* 1HFY13210 190.8 370 357.1 174.1 341.0180 166.9 169.6 164.1 166.4 320 287.9150 270120 220 90 170 60 120 30 70 1QFY12* 2QFY12* 3QFY12* 4QFY12* 1QFY13 2QFY13 1HFY11 1HFY12* 1HFY13 2QFY13 vs 2QFY12 2QFY13 vs 1QFY13 1HFY13 vs 1HFY12 RM 23.9 mil + RM 24.4 mil +RM 16.1 mil +14.3% + 14.7% +4.7% Note * : Restated for MFRS 24
  • 26. Net Profit After Tax 1HFY2013: 4.8% growth in Net Profit After Taxation; and 14.2% Growth Q-o-Q Net Profit After Tax Net Profit After Tax sen RM mil NPAT EPS sen RM mil NPAT EPS 20150 9.3 10 310 17.5 8.5 8.3 8.2 16.6 18 8.1 8.0 290 141.9 270 16 8 13.9130 250 266.5 130.0 254.3 14 126.3 230 124.3 122.5 124.6 6 12 210110 212.9 10 190 4 170 8 150 6 90 130 2 4 110 90 2 70 0 70 0 1QFY12* 2QFY12* 3QFY12* 4QFY12* 1QFY13 2QFY13 1HFY11 1HFY12* 1HFY13 2QFY13 vs 2QFY12 2QFY13 vs 1QFY13 1HFY13 vs 1HFY12 RM 17.6 mil + RM17.4 mil + RM12.2 mil + 14.2% + 13.9% + 4.8% Note * : Restated for MFRS 25
  • 27. Capital Management Healthy RWCR at 15.2%, with Tier 1 at 12.1% well above Basel III requirements Risk Weighted Capital Ratio Balance Sheet Leverage Ratio 8.8% 16.09% (total equity net of deferred tax & intangible assets over total assets net of deferred tax & 15.40% intangible assets) 15.13% 15.18%14.65% Total Leverage Ratio 6.0% (total equity net of deferred tax & intangible assets over total assets net of deferred tax & intangible assets & Off Balance Sheet)FY2009 FY2010 FY2011 FY2012* 1HFY2013 Capital Adequacy by Legal Entities Core Capital Ratio Legal Entities Core Capital RWCR 11.95% 11.88% 12.08% ABMB 13.53% 13.57% 11.13% AIS 12.57% 13.43%10.30% AIBB 81.66% 82.00% Enhancement to capital ratios to be achieved by:  Focus on less capital intensive fee based and non-interest income activitiesFY2009 FY2010 FY2011 FY2012* 1HFY2013  Strong asset qualityNote * Restated for MFRS 139 26
  • 28. Enhance Shareholder ValueConsistent Growth in Shareholder Returns – EPS & Dividend Payout Ratio Raised to 50% of NPAT % Return on Equity (Net Profit After Tax) % Return on Equity (Pre-Tax Profit)16.0 21 14.0 13.7 18.8 18.614.0 13.0 18 17.612.0 15 14.3 10.510.0 11.3 8.6 12 8.0 9 6.0 6 FY2009 FY2010 FY2011 FY2012* 1HFY13 FY2009 FY2010 FY2011 FY2012* 1HFY13 Earnings per share (sen) Dividend Payout 40 1st interim 2nd interim Payout ratio % 33.0 30 26.7 18 41.9% 40.4% 37.6% 40% 15 32.5% 19.7 20 17.5 26.2% 14.9 12 9 20% 10 6 3 0 FY2009 FY2010 FY2011 FY2012* 1HFY13 0 0% FY2009 FY2010 FY2011 FY2012* 1HFY13 Note * Restated for MFRS 139 27
  • 29. Recently Launched Business Initiatives Since April, we have launched a number of business initiatives Malaysia’s Most Valuable Brands Visa Infinite BIZ SMART AirAsia Big RewardsMy Business Platinum Card 283-Dec-12
  • 30. What Is Ahead …….. The Bank remains strong and well- positioned. Challenges Ahead ………………. Systematic execution of strategy • NIMs to remain under pressure Build on existing strengths and niche • Challenging external economic environment position in Consumer and Business Banking • Moderating economic growth Drive growth of non-interest income • Regulatory guidelines may impact consumer • Transaction Banking loans growth • Treasury Sales • Banc Assurance • Wealth Management …… We will continue to exercise caution Enhance capabilities in risk management and vigilant risk management in face of Ensure impactful investments in IT and challenges …………………… infrastructure Enhance productivity and efficiency 29
  • 31. THANK YOUDisclaimer: This presentation has been prepared by Alliance Financial Group Berhad (the “Company”) for information purposes only and does not purport to containall the information that may be required to evaluate the Company or its financial position. No representation or warranty, expressed or implied, is given by or onbehalf of the Company as to the accuracy or completeness of the information or opinions contained in this presentation.This presentation does not constitute or form part of an offer, solicitation or invitation of any offer, to buy or subscribe for any securities, nor should it or any part of itform the basis of, or be relied in any connection with, any contract, investment decision or commitment whatsoever.The Company does not accept any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising inconnection therewith.For further information, please contact:Alliance Financial Group Berhad Amarjeet Kaur Sew Yin Yin7th Floor, Menara Multi-Purpose Group Corporate Strategy & Development Group Corporate Strategy & DevelopmnetCapital Square Contact: (6)03-2604 3386 Contact: (6)03-2604 3385No. 8, Jalan Munshi Abdullah Email: amarjeet@alliancefg.com Email: sewyinyin@alliancefg.com50100 Kuala Lumpur, MalaysiaTel: (6)03-2604 3333www.alliancefg.com/Investor-Relations 30

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