This is the Analyst Briefing for the Half Year Results as at 30 September 2014 for Alliance Financial Group Berhad (AFGB).

1. ANALYST BRIEFING
1st Half FY2015
26 November 2014

2. Executive Summary
Contents
1
Financial Results for 1st Half FY2015
2

3. Clear niche in Consumer & SME Banking:
Focused on delivering long term sustainable financial performance:
Loans growth faster than industry at 15.5% y-o-y.
Improved asset quality with net impaired loans ratio at 0.7%.
Effective funding structure with CASA ratio at 35.2%.
Enhanced productivity and efficiency with Cost to Income ratio at 44.3%.
Return on Equity at 13.9%.
Strong capital ratio at 13.2%.
The Alliance Financial
Group Today
We have Built a Strong Franchise in Consumer & SME Banking
2
Build Consistent & Sustainable Financial Performance
Deliver Superior Customer Service Experience
Develop Engaged Employees with Right Values
Aspirations

4. 3
Summarised
Income Statement
7.9% Growth in Pre-Tax Profit, Excluding One-Off Gain
+11.6% rise in net interest income from 15.5% net loans growth, but interest margins remain under pressure.
+1.1% growth in non-interest income, contributed by:
Higher investment income
Recurring income from transaction banking, wealth management and brokerage and treasury activities
Other income: one-off gain on disposal of land amounting to RM21.6 million
Net write-back of provisions in 1HFY15 due to non-recurring recoveries of impaired accounts.
Pre-tax profit up 7.9% excluding one-off non-recurring gain on disposal of land.
Income Statement
1HFY15
RM mil
1HFY14
RM mil
%
RM mil
%
Net Interest Income
421.0
377.1
43.9
11.6%
Islamic Banking Income
107.6
105.6
2.0
1.9%
Non-Interest Income
198.3
196.2
2.1
1.1%
Net Income
726.9
678.9
48.0
7.1%
Operating Expenses
322.2
319.2
3.0
0.9%
Pre-Provision Operating Profit
404.7
359.7
45.0
12.5%
Write-back of losses on loans & financing and other losses
5.6
0.4
5.2
>100%
Pre-tax profit
410.3
360.1
50.2
13.9%
Net Profit After Taxation
311.1
269.0
42.1
15.7%

5. 4 Summarised Balanced Sheet
Balance Sheet
1HFY15
RM bil
1HFY14
RM bil
Change
RM bil
%
Total Assets
50.8
45.9
4.9
10.7%
Treasury Assets
12.1
12.6
-0.5
-4.2%
Net Loans
34.1
29.5
4.6
15.5%
Customer Deposits
40.8
36.7
4.1
11.0%
CASA Deposits
14.3
12.3
2.0
16.7%
Shareholders’ Funds
4.4
4.1
0.3
5.6%
Net Loans Growth (y-o-y)
15.5%
13.1%
-
2.4%
Customer Deposits Growth (y-o-y)
11.0%
14.3%
-
-3.3%
+15.5% y-o-y net loans growth: above industry – driven by strong loans growth in the Consumer and SME segments:
Residential mortgage (+15.2% y-o-y)
Commercial mortgage (+36.8% y-o-y)
SME (+24.4% y-o-y)
+11.0% y-o-y customer deposits growth, maintaining a healthy loans to deposit ratio while at the same time, ensuring efficient balance sheet management.
+16.7% y-o-y growth in CASA deposits, contributing to 35.2% of total deposits.
Net Loans Growth at 15.5% Y-o-Y, Driven By Consumer & SME Segments
Note: Treasury assets comprise financial assets (HFT, AFS & HTM), derivative financial assets & placements with Financial Institutions

6. 5 Key Financial Ratios
Cost to income ratio – reduced to 44.3% arising from effective cost management.
Non-interest income – 25.8% excluding one-off non-recurring gain on sale of land
First interim dividend declared of 9.0 sen (as compared to 7.5 sen last year).
Net Impaired Loans ratio – improved further to 0.7%.
Loans to deposits ratio – raised to 84.5% for a more efficient balance sheet management, while maintaining a strong liquidity position.
CASA ratio – improved to 35.2% on the back of CASA growth of 16.7%, outpacing our overall deposits growth.
Strong capitalisation under Basel III.
Financial Ratios
1HFY15
1HFY14
Change
Share-
holder Value
Return on Equity
13.9%
13.3%
+0.6%
Return on Assets
1.2%
1.2%
-
Earnings per Share
20.5 sen
17.7 sen
+15.8%
Interim Dividends per Share
9.0 sen
7.5 sen
+20.0%
Net Assets per Share
RM 2.82
RM2.67
+RM0.15
Efficiency
Non-Interest Income Ratio*
28.1%
29.8%
-1.7%
Cost to Income Ratio
44.3%
47.0%
-2.7%
Asset Quality
Gross Impaired Loans Ratio
1.2%
1.7%
-0.5%
Net Impaired Loans Ratio
0.7%
0.9%
-0.2%
Loan Loss Coverage Ratio
88.6%
86.7%
+1.9%
Liquidity
Loans to Deposit Ratio
84.5%
81.6%
+2.9%
CASA Ratio
35.2%
33.4%
+1.8%
Capital
Common Equity Tier 1 Capital Ratio
10.13%
10.76%
-0.63%
Tier 1 Capital Ratio
11.11%
12.17%
-1.06%
Total Capital Ratio
13.19%
14.79%
-1.60%
Note: * Includes the non-interest income portion of Islamic banking business

7. Return on Equity
CASA Ratio
Cost-to-Income Ratio
Non-Interest Income Ratio
6
Trend:
Key Financial Ratios
Sustained Financial Performance, with Key Metrics in the Right Direction
34.0%
33.7%
33.6%
34.0%
35.2%
30%
35%
40%
45%
FY2011
FY2012
FY2013
FY2014
1HFY15
48.3%
47.6%
47.9%
46.6%
44.3%
42%
44%
46%
48%
50%
FY2011
FY2012
FY2013
FY2014
1HFY15
12.8%
14.0%
13.8%
13.8%
13.9%
5%
7%
9%
11%
13%
15%
FY2011
FY2012
FY2013
FY2014
1HFY15
20.8%
27.0%
28.7%
27.7%
28.1%
0%
5%
10%
15%
20%
25%
30%
35%
FY2011
FY2012
FY2013
FY2014
1HFY15

8. Franchise Building
7
Excellence in Brand Strategy Alliance BizSmart Academy
Online Banking Initiative Of The Year – Malaysia
Global Financial Market Review Best SME Bank Malaysia 2014
* Note: Customer Satisfaction Index
ABM & MPC Highest CSI* Index Score in Malaysia 2013
Best Use of Integrated Marketing Campaign (Bronze) Alliance BizSmart Academy
Architecture Excellence Awards 2014 Growing Business in New Territory or New Service Offering
Malaysia’s 100 Leading Graduate Employers 2012, 2013 & 2014
in Asia Pacific, Gulf region & Africa

9. Strategic Priorities
8
Our Priorities
Build on strengths and niche in Consumer and Business Banking
Enhance existing branch network and leverage on alternate channels
Enhance customer experience through streamlining of processes and raising staff productivity
Improve efficiency in resource utilisation, ensuring impactful investments in technology and infrastructure
Strengthen investment banking and Islamic banking capabilities … We will continue to exercise caution & implement vigilant risk management to deliver consistent & sustainable results…
Build Consistent & Sustainable Financial Performance
Deliver Superior Customer Service Experience
Develop Engaged Employees with Right Values
Aspiration
Continue To “Deliver Consistent and Sustainable Financial Performance”

10. Executive Summary
Contents
1
Financial Results for 1st Half FY2015
2

11. 10
Steady Growth in Net Income Driven by Higher Loans Growth
Net interest income growth of RM43.9 million or 11.6% y-o-y:
+RM109.7 million increase in interest income primarily from loans growth; Offset by:
+RM65.9 million rise in interest expense from 11.0% y-o-y expansion in deposits
Deposit rates on the rise:
•Competition for retail deposits
•Rates re-priced ahead of the recent OPR increase, as well as expectation of further OPR hike in 2015.
Net income from Islamic Banking:
On the uptrend in 1HFY15, with the income from the expansion in hire purchase lending offsetting the run-off of the high-yielding co-op personal financing.
Interest & Islamic Banking Income
Net Interest Income & Islamic Banking Income
343.3
340.4
364.6
377.1
421.0
114.3
127.6
124.4
105.6
107.6
457.6
468.0
489.0
482.7
528.6
0
200
400
600
1HFY11
1HFY12
1HFY13
1HFY14
1HFY15
Net Interest Income
Islamic Banking Income
RM mil
1HFY15 vs 1HFY14
+ RM 45.9 mil
+ 9.5%

12. 11
Net Interest Margin Continues To Be Under Pressure
Net Interest Margin
2.68%
2.45%
2.35%
2.20%
2.11%
2.19%
1.5%
2.0%
2.5%
3.0%
FY2011
FY2012
FY2013
FY2014
1QFY15
1HFY15
2.07%
2.28%
2.22%
2.31%
2.38%
2.43%
1.5%
2.0%
2.5%
3.0%
FY2011
FY2012
FY2013
FY2014
1QFY15
1HFY15
Net Interest Margin (NIM) was 2.19% for 1HFY15, down by 1 bp from a year ago (1HFY14: 2.20%).
Continuing margin compression mainly due to:
Run-off from repayments of higher-yielding co-op loans:
RM408.7 million as at September 2014
RM454.4 million as at September 2013
RM1,023.1 million as at March 2011
New mortgage loans are at lower yield, with housing loans as a % of total Loans:
41.5% as at September 2014
39.1% as at September 2013
37.1% as at March 2011
Intensified competition for lending activities and deposits.
Cost of Funds (COF) increased to 2.43% following rise in OPR and competition for deposits.
Net Interest Margin Trend
Cost of Funds Trend

13. 12 Non-Interest Income
Non-Interest Income Supported by Continuing Focus on Building Recurring Income
Non-interest income (NII) in 1HFY15 increased by RM2.1 million or 1.1%, mainly due to:
Higher investment income by RM18.8 million or 47.3%, contributed by the marked-to-market valuation of derivative financial instruments.
Other income: one-off gain on disposal of land amounting to RM21.6 million.
Offset by: lower fee income compared to previous year due to the one-off sign-on fee income of RM30 million from Bancassurance agreement with Manulife in 1QFY14.
Investment income from trading activities remains under pressure due to market volatility.
Excluding one-offs*, non-interest income ratio in 1HFY15 is 25.8%.
RM mil
1HFY15 vs 1HFY14
+RM2.1 mil
+ 1.1%
18.3
26.5
35.3
42.5
39.4
58.0
53.3
48.6
82.0
68.5
23.9
53.5
62.9
39.7
58.5
15.4
19.0
22.5
32.0
31.9
115.6
152.3
169.3
196.2
198.3
20.9%
25.5%
27.2%
29.8%
28.1%
0
100
200
300
1HFY11
1HFY12
1HFY13
1HFY14
1HFY15
Commission
Fee Income
Investment Income
Other Income
NII Ratio
Non-Interest Income Trend
Mix
16.0%
29.5%
34.6%
19.9%
Note: * One-off gain on disposal of land amounting to RM21.6 million in Q2FY15
Note: Non-interest income ratio includes the non-interest income portion of Islamic banking business

14. Operating Expenses
13
Cost-to-income Ratio improved to 44.3%, from Effective Cost Management
OPEX Contribution
1HFY15
RM mil
1HFY14
RM mil
Change
RM
%
Personnel
206.2
209.2
-3.0
-1.5
Establishment
70.0
73.3
-3.3
-4.4
Marketing
14.0
8.3
5.7
69.4
Administration
32.0
28.4
3.6
12.6
Total OPEX
322.2
319.2
3.0
0.9
Operating Expenses Trend
Composition of Operating Expenses
Overall personnel cost reduced by 1.5% to RM206.2 mil in 1HFY15. The Group incurred a one-off MSS cost of RM10.6 million in June 2014 quarter, compared to VSS cost of RM22.3 million in June 2013 quarter.
Group has stepped up investments in branch channels, IT infrastructure and marketing cum brand building initiatives.
261.2
287.1
315.4
319.2
322.2
283.7
304.7
323.9
309.0
48.3%
47.6%
47.9%
46.6%
44.3%
0
200
400
600
800
1000
FY2011
FY2012
FY2013
FY2014
1HFY15
1st Half
2nd Half
CIR
544.9
591.8
639.3
628.2
1HFY15 vs 1HFY14
+ RM3.0 mil
+ 0.9%
Personnel 65.5%
Establishment 23.0%
Marketing 2.6%
Admin 8.9%
1HFY14
Personnel 64.0%
Establishment 21.7%
Marketing 4.3%
Admin 10.0%
1HFY15

15. 14
Gross Loans
Net Loans at 15.5% Y-o-Y, Driven By Consumer and SME Lending
RM bil
Net loans growth of 15.5% y-o-y, higher than the industry growth, driven by Consumer and SME segments. Loans growth momentum continue following the streamlining of processes from loan origination to disbursements.
Balanced loans composition with 57.6% Consumer; 19.7% SME and 22.7% for Wholesale Lending.
Effective management of interest rate risk: 89.7% of loan book is floating rate (1HFY14: 89.3%).
Note: ^ BNM’s revised SME definition effective from 1 January 2014. FY2013 SME loans have been restated based on BNM’s revised SME definition.
Net Loans, Advances and Financing Trend
Loans Composition by Business Segments
21.9
24.5
27.8
31.8
34.1
0
5
10
15
20
25
30
35
FY2011
FY2012
FY2013
FY2014
1HFY15
55.0%
53.9%
55.7%
57.2%
57.6%
21.3%
21.9%
17.9%
18.3%
19.7%
23.7%
24.2%
26.4%
24.5%
22.7%
0%
20%
40%
60%
80%
100%
FY2011
FY2012
FY2013^
FY2014^
1HFY15^
Consumer
SME
Wholesale
1HFY15 vs 1HFY14
+ RM 4.6 bil
+ 15.5%
1HFY15 YTD Annualised +14.0%

16. 15
Maintained Double-digit Growth Y-o-Y for Residential & Commercial Properties
Loans Growth:
Residential & Commercial
Residential properties: +RM1.9 billion or 15.2% y-o-y growth, higher than industry growth rate of 13.7%.
Commercial properties: +RM1.5 billion or 36.8% y-o-y growth.
Focus on high growth areas i.e. Klang Valley, Penang and Johor, with attractive housing loan packages for the right customer segments, and business premises financing for SMEs.
Loans Growth for Residential Property
Loans Growth for Commercial Property
8.7
9.8
11.6
13.3
14.3
3.3%
12.4%
18.9%
14.9%
15.2%
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
FY2011
FY2012
FY2013
FY2014
1HFY15
RM bil
2.8
3.4
3.7
4.8
5.6
6.1%
17.9%
11.0%
27.8%
36.8%
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
FY2011
FY2012
FY2013
FY 2014
1HFY15
RM bil
1HFY15 vs 1HFY14
+ RM 1.9 bil
+ 15.2%
1HFY15 vs 1HFY14
+ RM 1.5 bil
+ 36.8%
1HFY15 YTD Annualised +14.5%
1HFY15 YTD Annualised +37.3%

17. Business Banking Loans Growth Accelerated to 13.4% Driven by Lending to SMEs Loans Growth: Business Banking & SME
SME Lending: up RM 1.3 billion or 24.4% y-o-y (based on BNM’s revised SME definition).
10.1
11.5
12.5
13.8
14.6
9.2%
14.2%
8.4%
10.1%
13.4%
0
5
10
15
20
FY2011
FY2012
FY2013
FY2014
1HFY15
RM bil
1HFY15 vs 1HFY14 + RM1.7 bil + 13.4%
5.4
6.8
0
2
4
6
8
10
1HFY14*
1HFY15*
RM bil
Based on BNM’s revised SME definition
Overall business loans: +RM1.7 billion or 13.4% y-o-y.
Corporate & commercial loans: +RM0.4 million or 5.3% y-o-y, mainly attributed by growth in commercial loans.
1HFY15 vs 1HFY14
+ RM1.3 bil
+ 24.4%
RM mil
1HFY15
1HFY14
Y-o-Y Growth
SME
6,780
5,449
24.4%
Corporate & Commercial
7,842
7,446
5.3%
16
Loans Growth for Business Banking
Loans Growth for SME
Note:
* BNM’s revised SME definition effective from 1 January 2014. FY2013 SME loans have been restated based on BNM’s revised SME definition.
24.4%
1HFY15 YTD Annualised +12.3%
1HFY15 YTD Annualised +29.8%

18. Growth in Share Margin Financing and Hire Purchase Loans
Re-commenced Hire Purchase financing in April 2012, focusing on new cars and non- national marquees.
+RM351.2 million y-o-y growth with continued expansion of panel of car dealers and distributors.
1HFY15 vs 1HFY14
+ RM 0.3 bil
+21.9%
347.5
451.3
1,022.0
1,561.6
1,683.5
0
500
1000
1500
FY2011
FY2012
FY2013
FY2014
1HFY15
RM mil
Growth in Share Margin Financing in line with greater focus on wealth management and re- organisation of retail broking business.
Loans Growth:
Share Margin & Transport Vehicles
17
Share Margin Financing Growth
Loans Growth for Transport Vehicles
704.2
561.8
737.9
1,117.8
1,293.9
0
300
600
900
1200
1500
FY2011
FY2012
FY2013
FY2014
1HFY15
RM mil
1HFY15 vs 1HFY14
+ RM 0.4 bil
+37.3%
1HFY15 YTD Annualised
+15.6%
1HFY15 YTD Annualised +31.5%

19. 18
Well-diversified & Secured Loans Portfolio
Risk Management: well-diversified and collateralised loan book.
Residential and non-residential properties account for 57.9% of gross loans portfolio:
41.5% of loans portfolio is for the purchase of residential properties (slightly up from 41.4% in 1HFY14)
16.4% is for the purchase of non-residential properties (up from 13.8% in 1HFY14)
17.9% of loans is for working capital, compared to 20.6% in 1HFY14. Composition of Loans Portfolio
Loans Composition by Economic Purposes
Purchase of residential property 41.5%
Working capital 17.9%
Purchase of non- residential property 16.4%
Personal use 6.2%
Credit card 1.8%
Purchase of securities 5.0%
Purchase of transport vehicles 3.8%
Others 7.4%
1HFY15
Purchase of residential property 41.4%
Working capital 20.6%
Purchase of non- residential property 13.8%
Personal use 6.5%
Credit card 2.0%
Purchase of securities 4.8%
Purchase of transport vehicles 3.1%
Others 7.8%
1HFY14

20. 19
Asset Quality – Net Impaired Loans Ratio Maintained at 0.7% Asset Quality
Gross impaired loans ratio improved to 1.2%.
Net reduction in gross impaired loans of RM110.4 million y-o-y was mainly contributed by recoveries.
Continuing efforts to refine credit origination processes, credit scoring models and intensify collections.
Gross Impaired Loans
Net Impaired Loans Ratio
629.2
579.2
442.8
452.5
412.8
2.5%
2.1%
1.4%
1.4%
1.2%
0
200
400
600
800
1000
1200
1400
FY2012
FY2013
FY2014
1QFY15
1HFY15
RM’mil
Gross impaired loans
GIL Ratio
1.4%
1.1%
0.7%
0.8%
0.7%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
FY2012
FY2013
FY2014
1QFY15
1HFY15
%
1HFY15 vs 1HFY14
NIL Ratio: - 0.2%
(from 0.9% Sep 2013)
1HFY15 vs 1HFY14
GIL: - RM 110.4 mil
-21.1%
1HFY15 vs 1HFY14
GIL Ratio: - 0.5%
(from 1.7% Sep 2013)

21. 20
Improvement in Asset Quality for SME segment due to Recoveries
Asset Quality:
Mortgages, Hire Purchase, SME
Gross impaired loans (“GIL”) ratio for the purchase of residential & non-residential properties maintained at 1.4% on a combined basis, while GIL ratio for purchase of transport vehicles improved marginally to 0.8%.
GIL ratio for SME segment improved to 0.9% mainly due to recoveries.
Purchase of Residential and
Non-Residential Properties
Purchase of
Transport Vehicles
SME
266.7
282.4
254.2
265.6
272.2
2.0%
1.8%
1.4%
1.4%
1.4%
0
200
400
600
FY2012
FY2013
FY2014
1QFY15
1HFY15
RM’mil
Gross impaired loans
GIL Ratio
5.7
5.6
9.8
11.6
10.9
1.0%
0.8%
0.9%
1.0%
0.8%
0
5
10
15
20
FY2012
FY2013
FY2014
1QFY15
1HFY15
RM’mil
Gross impaired loans
GIL Ratio
146.2
101.4
79.4
76.7
60.1
2.7%
1.7%
1.4%
1.2%
0.9%
0
100
200
300
FY2012
FY2013
FY2014
1QFY15
1HFY15
RM’mil
Gross impaired loans
GIL Ratio

22. (0.9)
(14.0)
(0.8)
(4.8)
3.4
(17.6)
1.8
(6.6)
-40
-30
-20
-10
0
10
Write-back of Impairment
Allowance for/(write -back of) Losses on Loans/Financing & Other Losses
4QFY14
1QFY15
2QFY14
2QFY15
(7.4)
(5.7)
3.4
3QFY14
(31.6)
1.8
Impairment Provisions
21
RM 5.7 million Net Write-Back In Provision Due to Recoveries. Credit cost ~ 10.3 bps
87.7%
82.5%
92.7%
90.2%
88.6%
FY2012
FY2013
FY2014
1QFY15
1HFY15
Charge
Net write-back in 1HFY15 is due to recovery of several large accounts, despite the higher collective assessment arising from loans growth.
For 1HFY15, credit charge for loans/financing was RM34.4 million or ~10.3bps (1HFY14: RM26.0 million or ~8.9bps) (excluding recoveries).
Allowance for /(Write-back of) Losses on
Loans/Financing and Impairment
Loan Loss Coverage
Write-back
RM’000
1HFY15
1HFY14
Individual assessment
(2,358)
3,069
Collective assessment
27,261
6,582
Bad debts recovered
(39,248)
(25,490)
Bad debts written off
8,986
14,854
Allowance for other assets
523
1,513
(Write-back)/Allowance for losses on loans/ financing and other losses
(4,836)
528
Write-back of impairment (CLO)
(833)
(902)
Total write-back
(5,669)
(374)

23. 22
Balance Sheet
Management
Effective Utilisation of Balance Sheet: Net Loans Constitute 67.1% of Total Assets
Total assets expanded by RM4.9 billion or 10.7% y-o-y to RM50.8 billion, driven mainly by lending.
RM bil
Net Loans 67.1%
Investment securities 22.9%
Cash, ST funds, Deposits with FIs 5.5%
Other Assets 4.5%
1HFY15
Deposits from customers 80.2%
Deposits of banks and other FIs 7.6%
Shareholders' Funds 8.6%
Other Liabilities 3.6%
1HFY15
1HFY15 vs 1HFY14 + RM4.9 bil + 10.7%
24.5
27.8
31.8
32.8
34.1
11.5
12.7
11.9
12.8
12.1
3.7
3.2
4.4
4.5
4.6
39.7
43.7
48.1
50.1
50.8
0
10
20
30
40
50
60
FY2012
FY2013
FY2014
1QFY15
1HFY15
Net Loans
Treasury Assets
Other Assets
Total
Composition of Total Assets
Total Assets Trend
Composition of Total Liabilities/Equity
Note: Investment securities comprise financial assets (HFT, AFS & HTM) & derivative financial assets
Net Loans 64.3%
Investment securities 26.1%
Cash, ST funds, Deposits with FIs 4.9%
Other Assets 4.7%
1HFY14
Deposits from customers 79.9%
Deposits of banks and other FIs 7.3%
Shareholders' Funds 9.0%
Other Liabilities 3.8%
1HFY14
1HFY15 YTD Annualised
+11.5%

24. 23 Customer Deposits
RM bil
RM bil
Total customer deposits at RM40.8 billion in 1HFY2015, up 11.0% from last year.
CASA deposits expanded by RM2.0 billion or 16.7% y-o-y to RM14.3 billion in 1HFY2015.
Robust Deposit Growth of 11.0% Y-o-Y, With CASA Deposits Up 16.7% to RM14.3 billion
32.2
36.0
39.2
39.6
40.8
0
5
10
15
20
25
30
35
40
45
FY2012
FY2013
FY2014
1QFY15
1HFY15
1HFY15 vs 1HFY14 + RM4.1 bil + 11.0%
9.1
10.4
11.5
12.0
12.6
1.7
1.7
1.8
1.7
1.7
15.6
17.1
18.6
17.8
18.3
5.8
6.8
7.3
8.1
8.2
33.7%
33.6%
34.0%
34.7%
35.2%
-50%
-44%
-38%
-32%
-26%
-20%
-14%
-8%
-2%
4%
10%
16%
22%
28%
34%
40%
0
10
20
30
40
50
FY2012
FY2013
FY2014
1QFY15
1HFY15
DD
SA
FD
NID,MMD,SD
CASA ratio
10.8
12.1
13.3
14.3
40.8
32.2
36.0
39.2
Customer Deposits Trend
CASA Trend
1HFY15 YTD Annualised
7.8%
39.6
13.7

25. 24 Customer Deposits
Strong Liquidity Position with Loans to Deposits Ratio at 84.5%
(%)
Loans to Deposit Ratio of 84.5% in 1HFY2015.
Our overall strategy is to maintain Loans to Deposit ratio closer to 85.0% for a more efficient liquidity and balance sheet management.
Individuals 42.6%
Business enterprises 32.5%
Govt. & statutory bodies 7.1%
Domestic financial institutions 8.9%
Others 8.9%
77.7
78.4
82.1
83.8
84.5
0
20
40
60
80
100
FY2012
FY2013
FY2014
1QFY15
1HFY15
Demand deposits, 30.9%
Savings deposits, 4.3%
Fixed/ investment deposits, 45.0%
Money market deposits, 10.0%
Negotiable instruments of deposits, 9.0%
Structured deposits, 0.8%
Deposits Composition by Customer Type
Deposits Composition by Product Type
Loans to Deposit Ratio Trend

26. Legal Entities
CET 1 Capital Ratio
Tier 1 Capital Ratio
Total Capital Ratio
AFG
10.13%
11.11%
13.19%
ABMB
10.20%
11.37%
11.41%
AIS
12.17%
12.17%
12.96%
AIBB
86.04%
86.04%
86.04%
Basel III
Minimum regulatory capital adequacy ratio ^
4.5%
6.0%
8.0% Effective Capital Management
25
Strong profit generation capacity to enable balance sheet expansion and meet targeted dividend payouts.
Continuous enhancement of capital usage by focusing on:
•Less capital intensive lending activities – Consumer, Mortgage and SME lending
•Non-interest income and fee based activities – Wealth Management and Transaction Banking
•Improving asset quality
Capital adequacy ratios are well above the Basel III requirements.
15.13%
14.63%
13.67%
13.21%
13.19%
10%
12%
14%
16%
18%
FY2012
FY2013
FY2014
1QFY15
1HFY15
Basel III: Capital Adequacy Ratios Well Above Regulatory Requirements
^ Based on the Basel III minimum capital ratios for calendar year 2015
RM Mil
FY12
FY13
FY14
1Q
FY15
1H
FY15
Double Leverage Ratio
98.7%
98.5%
99.0%
98.8%
98.2%
Total Capital Ratio

27. 26
Note: ^ Includes proposed first interim dividend # Excluding special dividend of 10.5 sen or RM159.2 mil paid on 26 June 2014 * Share price of RM4.99 as at 30 September 2014
2.2%
3.4%
3.8%
4.3%
1.8%*
0%
2%
4%
6%
FY2011
FY2012
FY2013
FY2014#
1HFY15^
%
26%
42%
47%
51%
44%
0%
20%
40%
60%
80%
FY2011
FY2012
FY2013
FY2014 #
1HFY15^
%
16.6
13.3
7.0
19.0
1HFY15: Progressively Raising Dividend Payout in line with Policy of up to 60% of Net Earnings
9.0
Dividend Per Share (Sen)
Dividend Payout Ratio
Dividends Paid (Amount)
Dividends Yield (%)
3.3
5.6
6.6
7.5
3.7
7.7
10.0
11.5
0
5
10
15
20
25
30
35
FY2011
FY2012
FY2013
FY2014#
1HFY15^
sen
1st interim
2nd interim
50.5
85.7
100.3
114.3
56.6
117.5
152.2
174.7
107.1
203.2
252.5
289.0
139.3
0
100
200
300
400
FY2011
FY2012
FY2013
FY2014#
1HFY15^
RM’mil
1st Interim
2nd Interim

28. Return on Equity at 13.9%, with Consistent Growth in Earnings Per Share
27
Enhanced
Shareholder Value
sen
RM mil
RM mil
12.8
14.0
13.8
13.8
13.9
6
9
12
15
FY2011
FY2012
FY2013
FY2014
1HFY15
%
Net Profit After Tax
Earnings Per Share
Profit Before Tax
Return on Equity (After Tax)
287.9
341.0
357.1
360.1
410.3
265.2
333.6
356.9
389.3
553.1
674.6
714.0
749.4
0
200
400
600
800
1,000
FY2011
FY2012
FY2013
FY2014
1HFY15
1st Half
2nd Half
212.9
254.3
266.5
269.0
311.1
196.3
248.8
271.6
294.5
409.2
503.1
538.1
563.5
0
200
400
600
800
FY2011
FY2012
FY2013
FY2014
1HFY15
1st Half
2nd Half
13.9
16.6
17.5
17.7
20.5
12.8
16.4
17.8
19.5
26.7
33.0
35.3
37.2
0
10
20
30
40
50
FY2011
FY2012
FY2013
FY2014
1HFY15
1st Half
2nd Half

29. 28
6.022
6.811
6.827
7.307
7.725
0
2
4
6
8
FY2012
FY2013
FY2014
1QFY15
1HFY15
RM bil Enhanced Shareholder Value
3.89
4.40
4.41
4.72
4.99
0
1
2
3
4
5
6
FY2012
FY2013
FY2014
1QFY15
1HFY15
RM
1HFY2015: Steady improvement in Market Capitalisation and Share Price performance
Market capitalisation and share price performance is improving steadily, with CAGR at 13.8% since FY2011.
Market Capitalisation
Share Price Performance
RM Mil
FY11
FY12
FY13
FY14
1Q
FY15
1H
FY15
Price to
book multiple
1.4
1.6
1.7
1.6
1.8
1.8

30. Alliance Financial Group
7th Floor, Menara Multi-Purpose
Capital Square
No. 8, Jalan Munshi Abdullah
50100 Kuala Lumpur, Malaysia
Tel: (6)03-2604 3333
www.alliancefg.com/quarterlyresults
THANK YOU
Tan Hong Ian Corporate Strategy & Investor Relations Contact: (6)03-2604 3370 Email: tanhongian@alliancefg.com
Disclaimer: This presentation has been prepared by Alliance Financial Group (the “Company”) for information purposes only and does not purport to contain all 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 on behalf 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 it form 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 in connection therewith.
For further information, please contact:
Amarjeet Kaur Group Corporate Strategy & Development Contact: (6)03-2604 3386 Email: amarjeet@alliancefg.com
29

31. Islamic Banking: Y-o-Y Net Financing Growth of 22.7% and Deposit Growth of 13.7%
30
Net Financing & Advances (AIS)
Customer Deposits (AIS)
Islamic Banking Income
Net Profit After Tax & Zakat (AIS)
5.5
5.2
5.9
6.3
7.1
31.5%
36.8%
33.1%
32.9%
30.8%
0
5
10
FY2011
FY2012
FY2013
FY2014
1HFY15
RM bil
Customer Deposits
CASA Ratio
Appendix
114.3
127.6
124.4
105.6
107.6
19.9%
20.6%
18.9%
15.6%
14.8%
0
50
100
150
1HFY11
1HFY12
1HFY13
1HFY14
1HFY15
RM mil
Islamic Banking Income
% of Group's Net Income
40.8
39.0
29.2
25.7
28.4
0
10
20
30
40
1HY11
1HY12
1HY13
1HY14
1HY15
RM mil
4.0
4.4
4.6
5.0
5.7
0
3
6
FY2011
FY2012
FY2013
FY2014
1HFY15
RM bil

32. Appendix
31
Requirement
Banks to maintain, in aggregate, collective assessment allowance (“CA”) and Regulatory Reserve ratio of 1.2%.
The CA + Regulatory Reserve is stated as a percentage of gross loans (excluding government loans), net of individual allowance (“IA”).
CA includes both provision for impaired and non- impaired loans, amount as per disclosed in our financial statements.
The Bank shall comply with this requirement by 31 Dec 2015.
Guideline on Classification and Impairment Provision for Loans/Financing
Treatment
In the event the Bank is required to top up the provision to 1.2% (via the creation of Regulatory Reserve), the top up portion is created by way of transferring the provision from retained profits i.e. merely movement within the statement of equity without additional charge to profit & loss accounts.
It would be a transfer from Retained Earnings to Regulatory Reserve (within Shareholders Funds).
Effectively the Regulatory Reserve will be similar to the Statutory Reserve – cannot be used to declare dividends. But no impact on the NTA.
As per Para 14.1, Regulatory Reserve, attributable to non-impaired loan is eligible for inclusion into Tier-2 capital computation.
AFG
Jun 2014
Mar 2014
CA %
0.90%
0.98%
Impact
As at end-Sep 2014, AFG’s CA ratio was at 0.90%. To top up to 1.2%, this translates to addition RM102.7 million.
Estimated impact to CET1 ratio is a drop of 0.31% to 9.81.%. Total Capital Ratio maintained at 13.18%.