This is the Half Year Analyst Briefing as at 30 September 2009 for Alliance Financial Group Berhad (AFGB).

1. ALLIANCE FINANCIAL GROUP
ANALYST BRIEFING
- 1HFY10 Results ended 30 September 2009 -
STAYING ON COURSE
1

2. AGENDA
• 1HFY10 Financial Performance
• 1HFY10 Business Review
• New Business Initiatives
•Q&A
2

3. Key
Messages
Cautiously optimistic in leveraging competitive position
• Massive government stimulus has stopped world economy from shrinking further.
However, the possibility of a weak recovery or a double-dip remains.
• The run-away performance of financial market is significantly fueled by excess liquidity.
Focusing on high yielding products and robust asset quality
• Scaling up revenue streams via high yielding products and optimizing cross-selling.
• Vigilant about asset quality via an integrated risk management, hence minimal credit
losses.
• Harnessing the energy of 3-year business transformation program.
Opportunity in active capital management
• The Group has restored its balance sheet to the desired financial strength.
• Active capital management will facilitate growth and optimize return on equity (ROE):
- Reallocating capital to higher yielding businesses
- Optimizing risk-reward by global pooling and diversification of risks
3

4. 6 Months Ended 30/9/09
Results Highlight
6 months 6 months
30 Sep 09 30 Sep 08 Variance
RM'mn RM'mn % • The Group‟s PBT decreased 26%
Net Interest Income 298.0 337.1 -11.6 compared to corresponding period last
year as the Group has provided a
Income From Islamic Banking 108.8 81.9 32.8
further RM97.4mil impairment to a
Net Interest Income + Income from
406.8 419.0 -2.9 CLO in anticipation of future economic
Islamic Banking
conditions. The said CLO‟s provision
Other Operating Income 99.8 109.8 -9.1
coverage stands at 96% as at
NET INCOME 506.6 528.8 -4.2 September 2009. This compared to
OPERATING EXPENSES (269.1) (255.2) 5.4 55% in June 2009.
OPERATING PROFIT 237.5 273.6 -13.2
NET ALLOWANCE FOR LOAN • The Group‟s net interest income
(67.0) (43.6) 53.7 declined by 12% mainly due to the
LOSS PROVISION
PROFIT BEFORE TAX 170.5 230.0 -25.9 drop in Overnight Policy Rate (OPR).
TAXATION (46.2) (51.2) -9.8
NET PROFIT 124.3 178.8 -30.5
4

5. 6 Months Ended 30/9/09
Results Highlight
2Q 1Q
30 Sep 09 30 Jun 09 Variance
• The Group PBT increased 73% or
RM'mn RM'mn %
RM45.7mil compared to preceding
Net Interest Income 152.9 145.1 5.4 quarter due to:-
Income From Islamic Banking 49.5 59.3 -16.5
Net Interest Income + Income from
 Lumpy recovery from a
Islamic Banking
202.4 204.4 -1.0 corporate loan customer
Other Operating Income 46.7 53.0 -11.9
 Increase in net interest income
NET INCOME 249.1 257.4 -3.2 from loans and financing on the
OPERATING EXPENSES (126.8) (142.3) -10.9 back on strong loan growth
OPERATING PROFIT 122.3 115.1 6.3  Decline in operating expenses
NET ALLOWANCE FOR LOAN LOSS
(14.2) (52.7) -73.1
PROVISION
PROFIT BEFORE TAX 108.1 62.4 73.2
TAXATION (30.0) (16.2) 85.2
NET PROFIT 78.1 46.2 69.0
5

6. 6 Months Ended 30/9/09
Results Highlight
Key Financial Ratios
Quarterly Ratios
% FYE FYE 2Q 3Q 4Q 1Q 2Q
31/03/08 31/03/09 30/09/08 31/12/08 31/03/09 30/06/09 30/09/09
Net interest margin 3.0 2.8 3.1 2.9 2.6 2.3 2.6
Cost of Fund 2.7 2.7 2.7 2.6 2.3 2.1 2.0
NFI / Total income 26.5 22.4 21.3 21.8 22.4 27.8Nd 24.0
Cost Income Ratio 49.6* 53.3 49.5 54.2 61.7 54.0 50.9
^ LD Ratio 82.5 79.9 85.4 87.5 79.9 86.9 96.0
RWCR 16.2 14.7 14.9 14.7 14.7 14.9 15.4
ROAA 1.4 0.8 1.3 1.1 0.8 0.6 0.8
ROAE 16.8 8.6 13.5 11.3 8.6 6.6 8.8
Gross NPL 7.0 4.5 5.4 5.2 4.5 4.5 4.1
Net NPL 3.3 1.8 2.3 2.2 1.8 1.9 2.0
Loan Loss Coverage 79.9 99.7 91.2 92.6 99.7 97.7 89.0
*Computed based on “normalized” cost/income
^Includes PDS
6
Nd - High due to PER write back from two lumpy loans provisions

7. • 1HFY10 Financial Performance
• 1HFY10 Business Review
• New Business Initiatives
•Q&A
7

8. Group
Strategy
Vision
A leading integrated financial solutions provider with regional reach,
delivering the best customer experience and creating long term shareholder value.
Mission
We will deliver excellent customer experience through strategic alliances
and enhanced group synergy, employing best in class technology and human capital.
Values
Caring
CARING
Conviction
CONVICTION Integrity
CREATIVITY
Resilience Creativity
INTEGRITY
RESILIENCE
Wholesale &
Investment Bank
Commercial Consumer Islamic
Large SME SME / Mass
Corporate /Commercial Mass Market Market
Regional Hubs & Branches & Direct Marketing 3rd Parties
HO Hubs
Risk & Sales & Service Performance
Compliance Service Quality Culture
Employees Customers Shareholders Community
8

9. Loans
Segmentation
Business transformation puts AFG on right target mix
Core strengths in Consumer & Commercial Banking Loans growth (%YoY) – AFG outpaces industry
Industry Alliance Bank
1.4% 25
13.3%
33.9% 32.1% 21.8% 20
26.1%
15
15.4% 18.3% 30.8%
10
59.2%
50.7% 49.6% 5
47.5%
0
Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09
Sept 06 Sept 09 Sept 06 Sept 09 -5
Consumer (Industry) Consumer (AFG) Industry AFG
Commercial/SME (Industry) Commercial/SME (AFG)
-10
Corporate (Industry) Corporate (AFG)
• Loans portfolio, previously heavily skewed towards Corporate Banking has been
reshaped towards our desired mix – Consumer and Commercial Banking along with
market growth and opportunities
• Supported by strong local execution capabilities and competitive product suite
9

10. Loans Growth
Segmentation
Loans growth primarily driven by Consumer & Corporate Banking
Loans Breakdown by Businesses 13,000
Consumer 10
RM mil - lhs
%QoQ - rhs
11,500
FYE FYE FYE FYE FYE 2010 % change 6
10,000
RM Mil 31/3/06 31/3/07 31/3/08 31/3/09 1Q 2Q •YoY •QoQ
8,500
2
* *
10,832 11,869 12,172*
7,000
Consumer 6,169 7,206 8,828 n. c. 2.6%
5,500 -2
Jun-06 M ar-07 Dec-07 Sep-08 Jun-09
Commercial
*
/SME 4,212 4,238 5,253 5,859 5,232* 5,362* n. c. 2.5%
6,000
Commercial / SME 13
RM mil - lhs %QoQ - rhs
Corporate 4,200 1,910 1,839 2,567 2,577 2,731 12.9% 6.0% 5,500 8
5,000 3
Exit Books - 1,139 625 333 306 288 -38.9% -5.9% 4,500 -2
4,000 -7
Total 14,581 14,493 16,545 19,591 19,984 20,553 9.8% 2.8% 3,500 -12
Jun-06 M ar-07 Dec-07 Sep-08 Jun-09
Note: - * – not comparable due to retagging with mass market
Corporate
• AFG loans growth of 9.8% outpaced industry of 7.3% as of Sept 09
4,000 50
RM mil - lhs
%QoQ - rhs 35
3,500
• AFG loans growth momentum strengthening +2.8% QoQ in 2QFY10 3,000
20
compared to 2.0% QoQ in 1QFY10 2,500
5
• Corporate loans grew on the back of much reduced loan base and its
-10
2,000
-25
portfolio mix is within the desired target mix 1,500 -40
Jun-06 M ar-07 Dec-07 Sep-08 Jun-09
10

11. Earnings
Check Points
Improving net interest margins on high CASA ratio
Visible improvement in net interest margin CASA ratio at top quartile of the industry
3.2% 39%
3.1% 3.1% 38.0%
3.1% Industry AFG
3.0% 35.6% 35.5%
35.1%
35%
33.8%
2.9% 34.6%
2.8% 2.7% 31.6%
2.8% 2.8% 2.7% 2.7% 32.5%
2.6% 2.6% 31%
2.7% 2.6%
2.6%
2.6% 2.6%
27% 26.2%
2.4% 25.5% 25.5% 25.3% 25.3% 25.3%
Industry AFG 2.3% 25.4%
24.8%
2.2% 23%
Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09
Lower than industry’s cost of funds AFG’s cost-income ratio decelerating fast
3.8% 65%
61.7%
3.4% 3.4%
3.4% 55.4% 54.5%
3.2% 55% 54.3% 54.0%
3.1% 53.7% 49.6%
2.9% 3.0% 48.2% 50.9%
3.0% 2.9%
3.0% 3.0% 43.6% 48.1% 45.7%
45%
46.1% 46.0%
45.3%
2.6% 2.7% 42.9%
2.6% 2.6%
2.2% 35%
2.2% 2.1%
Industry AFG 2.1% 2.0% Industry AFG
1.8% 28.7%
25%
Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09
11

12. Gearing Up for
Greater Efficiency
Cost management – one of the key drivers of improved bottom-line
Personnel Cost Establishment Costs Marketing Expenses Admin & General Expenses
9.8%
11.0% 54.4%
2.6% 122.9%
9.2%
50.1%
3.6%
-3.9%
-1.8%
-15.7%
-20.3%
-11.6% -13.1%
-26.7%
58.6% 58.1% 58.5% 62.1% 24.3% 24.2% 28.3% 25.8% -54.1%
58.1% 13.4% 58.1%
12.6% 10.5% 9.9%
3.7% 5.0% 2.6% 2.3%
Dec08 Mar09 Jun09 Sep09 Dec08 Mar09 Jun09 Sep09 Dec08 Mar09 Jun09 Sep09 Dec08 Mar09 Jun09 Sep09
% share of total operating expenses % QoQ growth
12

13. Loan Asset
Quality
Improving asset quality, resulting in minimal credit losses
Loan Loss Coverage – Higher than industry Non Performing Loans remains manageable
AFG Industry Gross NPL Net NPL
100% 98%
100 1500
91% 93%
87% 88% 89%
85% 83% 83% 88% 1,252
80%
80 77% 78% 1200 1,158
77%
73% 1,032 1,009 1,016
60 900 875 890
845
40 600 567
522
452 413 411 366 403
343
20 300
0 0
Dec-07 M ar-08 Jun-08 Sep-08 Dec-08 M ar-09 Jun-09 Sep-09 Dec-07 M ar-08 Jun-08 Sep-08 Dec-08 M ar-09 Jun-09 Sep-09
AFG’s gross NPL ratio – declining further AFG’s net NPL ratio lower than industry
10.0 AFG Industry 5.0 Industry
AFG
Net NPL ratio lower
8.0 7.9% 4.0
3.7% than industry since
7.0% Jun08
3.2% 3.3%
6.0% 3.0% 2.8%
6.0 5.6% 3.0
5.3% 5.4% 5.2% 2.7% 2.5%
4.8% 2.4%
4.5% 4.5% 4.5% 2.3% 2.2% 2.2% 2.2%
4.3% 4.1% 4.1% 2.1%
3.9% 3.8% 2.0 1.9% 2.0%
4.0 1.8%
2.0 1.0
0.0 0.0
Dec-07 M ar-08 Jun-08 Sep-08 Dec-08 M ar-09 Jun-09 Sep-09 Dec-07 M ar-08 Jun-08 Sep-08 Dec-08 M ar-09 Jun-09 Sep-09 13

14. Capital Adequacy
Management
Strengthened balance sheet with strong capital position
AFG’s RWCR @ 15.4% vs Industry’s 14.5% ABMB’s RWCR @ 13.5% vs Industry’s 14.0%
14.5% Sep-09 14.0%
Sep-09 15.4% 13.5%
AFG Industry ABMB Industry
14.8%
Jun-09 Jun-09 14.3%
14.9% 13.2%
13.6% 13.1%
Mar-09 14.7% Mar-09 13.1%
12.6% 12.2%
Dec-08 14.7% Dec-08 12.7%
13.0% 12.5%
Sep-08 14.9% Sep-08 13.1%
13.6% 13.0%
Jun-08 15.1% Jun-08 12.9%
10 11 12 13 14 15 16 17 10 11 12 13 14 15 16
AFG and ABMB Core Capital
Core Capital (AFG) Core Capital (ABMB)
Sep-09 11.1%
13.2% • AFG’s core capital and RWCR continued to
Jun-09 12.7%
improve to 11.1% and 15.4% in 2QFY10
10.5%
compared to 10.5% and 14.9% in 1QFY10
Mar-09 12.6%
10.3%
• In turn, this has strengthened AFG’s balance
Dec-08
10.2%
12.2%
sheet ability to take stresses, as reflected in
Sep-08 12.7% higher equity-to-asset ratio (9.4% in 2QFY10
10.4%
from 9.0% in 1QFY10)
Jun-08 12.5%
10.4%
4 6 8 10 12 14 14

15. Update on
CLOs
Collaterized Loan Obligations (CLOs) are a matter of the past
RM'm Kerisma Idaman Capital CapOne
Total AFG's Total AFG's Total AFG's
Issuance Exposure Issuance Exposure Issuance Exposure
● Total Issuance 1,000m 175m (17.5%) 800m 240m (30%) 1,000m 10m (1%)
● Maturity Date Jun-09 Oct-11 Sep-10
Key points: • Matured already • As at Sept 2009, the • Impairment
Group has made 96% provision – none
provisions in Idaman
• Total exposure covered Capital (55% as of June
although expected 2009) • Small exposure of
write-backs will be AFG on it
used to cover provision • Management will make
for Idaman Capital in full provisions on this
particular account by end of this
• AFG has 100%
financial year
exposure at super
senior level
• The additional
provision is expected
not to have an impact
to the bottom line
15

16. FRS139
Working to develop impairment calculation tools that will give us
an information advantage
• Meet regulatory requirements by year end
• Parallel run and test in Q1 2010
• Potential for write-back in FY2010-11 in retained profits
FRS139 • Build account-level pricing and margin management
capability
• Develop enhanced tools for financial management,
leveraging approach to Basel II
16

17. • 1HFY10 Financial Performance
• 1HFY10 Business Review
• New Business Initiatives
•Q&A
17

18. Alliance Bank
Strategic Priorities
Primary focus to strengthen business fundamentals
Consumer Banking
Segment Based
Driven
Integrated
Wealth High Yield ‘Koop’
Management Loans
Navigate to Win
Active 3rd Vertical
Commercial Non
Financial Market
Programme
Stock-broking
Transformation
18

19. Integrated
Wealth Management
The way forward to put the Group in an advantageous position
Family Wealth
Estate Planning Office Mgmt.
products/
DPM
Fund Portfolio Management services
Consumer Credit Arts
Brokerage
Financial Planning/ Structured Products
Mortgages Asset Allocation
Life Insurance Alternative Investments
Payment & Credit Cards
Tax Advisory
Warrants
Retail Payments & Transactions
Banking Mutual Funds
products/ Current & Savings Accounts
services
Mass Affluent / Affluent products and services
• Both Mass Affluent and Affluent customers require basic products from one-stop-shops
• Extending the product range is the obvious next step to serve the more sophisticated clients…
• … but the distribution of such Wealth Management products require a different approach
based on a needs-based holistic financial advice concept
19

20. 3rd Vertical
Commercial Non-Program
Building long term relationship with clients
We are targeting two customer
segments:
Corporate Annual Sales Turnover
~3,000 • Family controlled businesses that are
Non Program above the SMEC cut off and those that
Commercial (Commercial Banking) do not fit into Corporate Banking. These
~24,000 companies will generally have Group
RM150.0mil
turnover between RM150mn to
SMEC RM500mn (individual business entities
(SME Banking) may have lower turnovers)
RM25.0mil
SME • Customers in certain Specialized
~175,000 Industries segments such as Palm Oil
Milling, Rice Milling, General
RM1.0mil
Contracting, Non-Infrastructure Contract
Financing and Investment Holding
Micro Companies for properties for self use
~488,000
20

21. Stock-broking
Transformation
Repositioning Stock-broking as an opportunity
1 Broking Branches (Pure Stock-Broking)
• Continue to exist as a pure stock broking branch in strategic Retail Broking
locations
• Regulatory and legal framework – exists as a branch under Institutional Broking
jurisdiction of SC and Bursa
• Trading will use leased lines and back office will be hubbed Hubbed Back-office
2 Share Trading Center (STC) Bank Branches
• Fully manned by bank branch officers
Share Trading with STC
• Regulatory and legal framework – Under direct jurisdiction of
BN. CMSA “Registered Person” jurisdiction in dealing of
securities under SC and Bursa Bank Branch
• All share related transactions including CDS and account
opening handled by bank front desk
• Trading will be through Excelforce and any back office support
will be hubbed
Rapid Expansion in line with IPOs
Sales &
Volume Growth Trading
Stock ETFs
Shifting into Variable Capacity Broking
(Capital)- with STC Model Foreign
Shares Margin
Lower Fixed Cost from Financing
Network Rationalization 21

22. Active
Financial Market
Driving Financial Market as a profit centre
At Present Going Forward
Our Market Positioning
Portfolio Mix - Govt Focused
High Relationship
Margin Focused
• Investment Portfolio 70% limited to Government
Solution
Risk Structuring
Capability
• The low risk Government exposure resulting in Q3 2009
lower return
Innovative Solution
Sales & Trading
Low Market Risk Limits
Sales and Trading
• Management Trigger currently limited to RM60mil Q3 2007
or 2% of Shareholders‟ Funds
Low Inter Bank
• This provides low buffer for price volatility; and Margin Risk & Liquidity Management Focused
• Investments limited to short tenors to mitigate
price volatility – max 3 years – resulting lower
return
MUREX System Will Further Improve Our Capabilities…
• Distribution Platform
• More products
• Future revenue streams
22

23. Long Term Value Creation
Information Technology (IT)
Major IT milestones
BT1 Trading Loan Origination
Platform (CC/PL/MM)
Launch of
You-nique
ATOS Ascent Card
Credit Card Murex
System Treasury System
SME Score Card
Basel II Premium Master
Credit Risk Mgt Debit Card
FTP ITSM Software
Implementation
Cheque Loan Origination
Collateral Truncation
Mgt (HP/Mortgage)
Islamic Self Service
Bkg Entity Terminals Monitoring
Call Centre
Ph2 - IVR Islamic Std System
Debit Card
Trade Finance Sales
Operation Risk Branch Server Performance
Refresh and
Mass Market Compensation
(Alliance Rakan) System
23
Dec 07 June 08 Dec 08 Jun 09

24. Long Term Value Creation
Human Capital
Learning and development framework
Implementing Learning &
Development Framework
•Designed Leadership
Competency and
development programmes
for staff in leadership roles
•Competency Based Training –
Introduced Learning Directory
for Core Competencies,
Regulatory/Compliance and
Functional Competencies
•Designed Career
Development and Learning
Roadmaps by job families
226 sessions of in-house learning and development courses/events have been organised with
more than 5,000 participants during Jan to Oct 2009.
24

25. Long Term Value Creation
Cost Management Initiatives
Key component in driving productivity and efficiency
Managing human
• The initiatives involve
resource capacity major remodeling of
in line with business and operations
business volume
that will yield long term
cost savings and
Manage ongoing operational efficiencies
projects to
ensure only
SUSTAINABLE COST essential ones
REDUCTION are carried out
• The initiatives are now at
INITIATIVES
varying completion stage
Review process
and all of which will be
to reduce completed before the
wastage and cost financial year end
of doing
Revise contracts business
with vendors and
service providers
to obtain best
prices on basis of
economies of
scale
25

26. Long Term Value Creation
Productivity Enhancement
Operational efficiency and effectiveness
2007 2008 2009
Processing Time in Days Alliance Industry Alliance Industry Alliance Industry*
Housing Loan 1.2 2.7 1.2 2.4 1.5 2.6
Credit Cards 5.0 5.5 4.5 4.5 2.8 5.0
New biz financing < RM250,000 1.0 5.4 1.0 5.3 1.0 5.4
New biz financing RM250,000 - RM500,000 2.0 7.0 2.0 8.3 1.0 7.7
New biz financing above RM500,000 10.0 12.9 10.5 13.4 11.0 13.2
Teller Wait Time 7.5 4.2 5.3 3.9 2.1 4.1
ATM Up Time (%) 94.6 97.4 96.4 97.9 97.2 97.7
Complaint Resolution (Addressed) 5.1 3.4 3.9 2.6 2.8 3.0
Underwriting Turnaround Time :-
Mortage Loans (ML) 0.9 1.4 0.9 1.3 1.3 1.4
Hire Purchase (HP) 0.7 0.7 0.7 0.7 0.6 0.7
Credit Cards (CC) 1.0 2.5 1.0 2.4 1.0 2.5
*Average values from past years as industry benchmark results for 2009 is not available yet.
• Improvement in customer service and processing time above industry average
• Underwriting turnaround time better than industry
26

27. Corporate Social
Responsibilities
Alliance in the community
July - September 09:
• 31 August - Charity Drive in Aid of the FSIC
„contribution of 48 boxes filled with clothing, shoes, bags,
household utensils and a total 190kg of rice’
• 25 July - The Edge-Haven My Dream Home
Contest 2009
„sponsorship for the third consecutive year’
• 6 July - Alliance Bank Expands Network with
Facilities to Cater to the Physically Challenged
„by providing easy accessibility to the physically
challenged’
April - June 09:
• 6 June - Charity Drive by Share Services
„visit to the House of Joy in Puchong, Selangor’
• 28 May - Golden Bull Award 2009
„sponsorship for the seventh consecutive year’
• 2 May – Labour Day Assembly 2009
„sustain team spirit and good working culture’
• 30 April – Alliance Bank Donates RM40,000 to
Wildlife Conservation
„Virtual Pet Coinbank Campaign to save endangered
species’
• 25 April – AIS Contributes to PEMANGKIN
„contribution of RM30,000’
27

28. THANK YOU
Investor Relations
Alliance Financial Group
7th Floor, Menara Multi-Purpose, Capital Square
8 Jalan Munshi Abdullah
50100 Kuala Lumpur, Malaysia
www.alliancebank.com.my/investorrelations.html
28