This is the First Quarter Analyst Briefing as at 30 June 2010 for Alliance Financial Group Berhad (AFGB).

1. ANALYST BRIEFING
- 3 Months Ended 30 June 2010 -

2. AGENDA
• 1QFY2011 Financial Performance
• Key Messages
• Questions & Answers
2

3. Financial
Performance
Strong earnings growth
PBT Operating Profit
RM ‟mil
160 151.4
138.8
140 130.3 • 1QFY2011 operating profit grew
122.3
120
116.1 30.4% YoY from RM116.1mil to
RM151.4mil
100
150.3
131.0
80
108.1 107.4 • Lower allowance for impairment of
60 loans, advances & financing and
62.4 other losses
40
1Q10 2Q10 3Q10 4Q10 1Q11
• The Group recorded profit-after-
PAT - lhs EPS - rhs taxation (PAT) of RM110.5mil,
RM ‟mil sen
120 8
7.2 +139.2% YoY
6.5 7
100
80 5.1 5.0
6 • Earnings per share (EPS) of 7.2 sen
5 in 1QFY2011, compared to 3.0 sen in
60 100.0
110.5 the same period last year
3.0 4
78.1 77.2
40
3
46.2
20 2
1Q10 2Q10 3Q10 4Q10 1Q11 3

4. Financial
Performance
Growth momentum in net income continued
(RM ’mil) 1QFY10 2QFY10 3QFY10 4QFY10 1QFY11 % YoY
Net Interest Income 137.3 152.9 153.8 165.6 169.1 23.2%
Islamic Banking Income 59.4 49.6 65.6 71.0 55.6 -6.4%
Non-Interest Income 60.3 46.7 57.7 41.0 51.5 -14.6%
Net Income 257.0 249.2 277.1 277.6 276.2 7.5%
• 23.2% increase in net interest income on the back of 7.9% YoY loans growth
• Income of Islamic Banking was affected by slower growth in „Koop‟ loans and Profit Equalisation
Reserve (PER). If the PER was normalised, Islamic Banking income will rise by 35.3%
• Non-interest income grew slower than expectation driven by lower business volume and stringent risk
management
4

5. Financial
Performance
NIM improved to 2.8% from 2.3% a year ago
3.2%
3.0%
2.8%
2.8%
2.6%
2.3%
2.4%
2.2%
Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10
Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10
AFG 3.1% 3.1% 3.0% 2.9% 2.6% 2.3% 2.6% 2.7% 2.8% 2.8%
KEY DRIVERS
Consumer SME Commercial Group Corporate
NIM NIM NIM NIM
4.2% 5.0% 4.3% 3.3%
3.9% 4.7% 3.0%
4.0%
3.6% 4.4% 2.7%
3.7%
3.3% 4.1% 2.4%
3.0% 3.8% 3.4% 2.1%
Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10
5

6. Financial
Performance
Loans growth driven by Commercial and SME
Loans breakdown by businesses 13,500
Consumer 40%
RM 'mil - lhs
% YoY - rhs
FYE FYE FYE 2010 FYE 2011 12,000
30%
(RM ’mil) % YoY
31/3/09 31/3/10 10,500
1Q 1Q 20%
9,000
Consumer 10,832 12,800 11,869 12,821 8.0% 10%
7,500
Commercial 1,407 1,400 1,281 1,443 12.6% 6,000 0%
Jun-07 Mar-08 Dec-08 Sep-09 Jun-10
SME 4,452 4,235 3,951 4,301 8.9% 6,000
Commercial / SME 35%
RM 'mil - lhs
% YoY - rhs
5,500 25%
Corporate 2,567 2,723 2,577 2,745 6.5%
5,000 15%
4,500 5%
Exit Books 333 252 306 246 -19.6%
4,000 -5%
Total 19,591 21,410 19,984 21,556 7.9% 3,500 -15%
Jun-07 Mar-08 Dec-08 Sep-09 Jun-10
3,000
Corporate 60%
• AFG loans growth of 7.9% in 1QFY2011
RM 'mil - lhs
% YoY - rhs 40%
2,700
• AFG loans growth was driven by Commercial and SME loans, which grew 2,400
20%
by 12.6% and 8.9% respectively 2,100
0%
-20%
• Exit book loans have decreased to RM246mil in 1QFY2011 from 1,800
-40%
RM306mil in 1QFY2010 1,500 -60%
Jun-07 Mar-08 Dec-08 Sep-09 Jun-10 6

7. Financial
Performance
High loan to deposit ratio mitigated by high deposit quality
AFG‟s L/D ratio is higher than industry average Low cost of funds helps us to remain competitive
3.0%
AFG Industry Cost of Funds (%)
95%
2.6%
92.6% 2.6%
2.6%
2.2%
90%
2.1% 1.9%
88.9% 1.8%
1.7%
85% 1.4%
84.1%
1Q09 3Q09 1Q10 3Q10 1Q11
82.4% 81.4% CASA ratio is at top quartile of the industry
CASA Fixed Deposits Others
100% 4.6%
80% 9.4% 7.3% 6.8% 7.7%
79.8%
80%
78.2% 51.7% 50.8%
77.9% 51.8%
57.3%
60% 56.0%
75%
40%
73.5%
40.9% 41.5% 41.5%
72.2% 20% 38.1%
34.6%
70%
0%
1Q09 3Q09 1Q10 3Q10 1Q11
1Q10 2Q10 3Q10 4Q10 1Q11 7

8. Loans Impairment
Methodology
FULL BLOWN FRS 139 TRANSITIONAL PROVISION
Non-Impaired Impaired Non-Impaired Impaired
Individual Assessment Large Individual Assessment
• Corporate Large
Using DCF Method loan using DCF Method
• Large Comm
loan
>RM1mil
CA = PD x LGD x >RM1mil
• SME
LIP x O/S
CA = PD x LGD x Portfolio -
LIP x O/S small loan CA = 1.5% x
<RM1mil [O/S – IA Individual Assessment Portfolio -
Using DCF - using BNM GP3‟s time- small loan
Retail/ IA using BNM based method <RM1mil
Consumer GP3]
• Mortgage
• HP CA = PD x LGD x LIP x O/S
• Credit card
• P/Loan
• Stock broking
Legend:
PD Probability of Default
Individual Assessment (IA)
LGD Loss Given Default
O/S Outstanding Balance
Collective Assessment (CA)
LIP Loss Identification Period
8

9. Financial
Performance
Adoption of FRS 139: Financial Instruments
• Positive impact on opening reserves:
Total Equity (RM ‘mil)
As at 1 April 2010, as previously stated 2,952
Effect of adopting FRS 139 103
As at 1 April 2010, as restated 3,055
Enhancement to reserves 3.5%
• No significant impact on current earnings due to 1.5% collective impairment on loans as required under
the transitional provisions of the BNM guidelines on Classification and Impairment Provisions for
Loans/Financing issued in January 2010
• Impaired loans have been restated due to more stringent criteria on impaired loan classification under
FRS 139, as follows:
Impaired Loans Gross Impaired Loans
(RM ‘mil) Ratio
As at 1 April 2010, as previously stated 806 3.8%
Effect of adopting FRS 139 38 0.1%
As at 1 April 2010, as restated 844 3.9%
Note: Under the more stringent criteria, certain loans which are less than 3 months in default are now classified as
impaired loans
9

10. Financial
Performance
Income Statement (RM ’mil) FY 2010 FY 2009 1QFY11 4QFY10 % QoQ 1QFY10 % YoY
Interest Income 1,094.4 1,250.6 276.7 269.6 2.6% 269.8 2.6%
Interest Expense (477.5) (596.0) (107.6) (104.0) 3.5% (132.5) -18.8%
Net Interest Income 616.9 654.6 169.1 165.6 2.1% 137.3 23.2%
Islamic Banking Income 245.8 165.1 55.6 71.0 -21.8% 59.4 -6.4%
Non-Interest Income 201.8 235.0 51.5 41.0 25.6% 60.3 -14.6%
Net Income 1,064.5 1,054.7 276.2 277.6 -0.5% 257.0 7.5%
Operating Expenses (554.6) (559.4) (124.8) (138.8) -10.1% (140.9) -11.4%
Operating Profit 509.9 495.3 151.4 138.8 9.0% 116.1 30.4%
Write back/Allowance for NBD 31.9 (115.1) (0.5) (19.4) -97.4% (26.0) -98.0%
Allowance for Impairment (132.9) (76.9) (0.6) (12.0) -95.0% (27.7) -97.8%
Loan Impairment Allowances (101.0 ) (192.0) (1.1) (31.4) -96.4% (53.7) -97.9%
Profit before Taxation & Zakat 408.9 303.3 150.3 107.4 39.9% 62.4 140.9%
Taxation & Zakat (107.4) (74.4) (39.8) (30.2) 31.8% (16.2) 145.7%
Profit after Taxation & Zakat 301.5 228.9 110.5 77.2 43.1% 46.2 139.2%
10

11. Financial
Performance
Capital position remains strong
(RM ’mil) FY 2009 FY 2010 1QFY10 1QFY11 % YoY • AFG‟s core capital and risk-
weighted capital ratio (RWCR)
continued to improve to 11.2%
and 15.5% in 1QFY2011
Tier I Capital 2,234.1 2,429.2 2,212.8 2,444.7 10.5% compared to 10.5% and 14.9%
in 1QFY2010
Total Capital Base 3,167.3 3,339.3 3,152.5 3,366.7 6.8% • Total capital base of RM3.4bil,
increased by 6.8% YoY. Tier I
capital represents 72.6% of
total capital, improved further to
RWCR (%) 14.7 15.4 14.9 15.5 +0.6
RM2.4bil
Core Capital Ratio (%) 10.3 11.1 10.5 11.2 +0.7
• Healthy capital position and is
in line with BASEL requirement
11

12. Financial
Performance
Key financial ratios
FY 2010 FY 2011
FY 2009 FY 2010
1Q 2Q 3Q 4Q 1Q
• Net Interest Margin 2.8 2.7 2.3 2.6 2.7 2.8 2.8
Profitability
• Cost of Funds 2.7 1.9 2.1 2.0 1.9 1.7 1.7
• NFI / Total Income 22.4 24.2 27.8 24.0 24.5 24.2 19.4
Business • Cost Income Ratio 53.0 52.1 54.0 50.9 53.0 50.0 45.2
Performance • LD Ratio 76.6 90.6 82.4 90.3 88.9 90.6 92.6
• RWCR 14.7 15.4 14.9 15.4 15.2 15.4 15.5
Asset • Gross Impaired Loans 4.5 3.8 4.5 4.1 3.9 3.8 3.8
Quality • LLC 99.7 94.4 97.7 89.0 91.0 94.4 85.6
• ROAA 0.8 0.9 0.6 0.8 0.9 0.9 1.4
Shareholder
• ROAE 8.6 10.5 6.6 8.8 10.5 10.5 14.5
Value
• P / BV 0.9x 1.5x 1.3x 1.4x 1.4x 1.5x 1.5x
12

13. AGENDA
• 1QFY2011 Financial Performance
• Key Messages
• Questions & Answers
13

14. AFG’s
Journey
Moving from transformation journey to sustainable growth
Execution
• Focus on Execution
• Sustainable Growth
Transformation • Leveraging on Existing Strengths
• Synergising Lines of Business
• Productivity Management
• Restructure and Improve Portfolio
Quality
• Improve Risk and Operational
Controls
• Invest in People and Technology
• Branch Expansion
• Branding
Today
14

15. Looking
Ahead
Building sustainable growth
Favourable Economic Environment Strong Bank Assets
• Deep customer relationships
• Net beneficiary of rising interest rates • Strong risk culture and framework
• Streamlining industry focus • Good asset quality and strong balance sheet
• Strong and dependable management team
Priority Growth Areas
Synergising
Drive Fee Build Wealth Enhance
Lines of
Income Management Cross-Selling
Business
Segment-driven growth, leveraging shared expertise
Consumer SME Commercial & Corporate
Islamic Asset Mgt. Inv. Bank Treasury
15

16. Business
Realignment
Business banking
Now Model
Corporate Corporate
Bilateral
and
Commercial Relationship
Banking Managed
Commercial
Program
SME SME
Lending
16

17. Key
Guidance
Over the medium term (3-5 years) we will ...
NPLs … remain better than industry
… move to industry average (45 - 48%) through Y-o-Y
improvements, driven by:
CIR
• targeted revenue growth
• productivity focus
… achieve industry average (14 - 16%) through Y-o-Y
improvements, driven by:
ROE
• focus on underlying earnings
• prudent capital management
Dividend
Policy … pay “as much as we can afford, whenever we can”
17

18. Key
Messages
Bank is strong and performing well
• The Group has performed well in 1QFY2011 despite a competitive operating environment
• Transformation has taken place and we are delivering sustainable growth
• Adoption of FRS 139 had a positive impact on opening reserves and asset quality continued to
improve
• We will continue to improve productivity
Delivering value to our shareholders
• We remain well-capitalised
• We pay good dividends
• All our business decisions will be evaluated based on a long-term perspective
We are gaining momentum
• Underlying business momentum is intact and we are well positioned to take advantage of the current
economic cycle
18

19. 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
19

20. Loans &
Asset Quality
Gross Gross
Loan Impaired Impaired
Economic Purpose % YoY % Share
(RM ’mil) Loans Loans Rate
(RM ’mil) (%)
Purchase of Securities 325.3 28.3% 17.7 2.2% 5.4%
Purchase of Transport Vehicles 834.8 -25.0% 13.6 1.7% 1.6%
Purchase of Landed Property 11,230.0 5.1% 310.9 38.0% 2.8%
Purchase of Fixed Assets 82.4 41.6% 0.2 0.0% 0.2%
Personal Use 2,015.1 45.6% 41.2 5.0% 2.0%
Credit Cards 680.0 3.2% 14.7 1.8% 2.2%
Construction 248.8 -23.2% 22.1 2.7% 8.9%
Working Capital 5,524.1 16.8% 349.1 42.6% 6.3%
Others 615.2 -21.3% 49.4 6.0% 8.0%
Total 21,555.7 7.9% 818.9 100.0% 3.8%
20

21. Loan
Drivers
25
21
% YoY Change
17
13
9
5
Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10
Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10
AFG 9.8 12.1 14.2 17.7 22.1 22.1 18.4 15.5 9.8 8.0 9.3 7.9
Industry* 9.8 8.9 10.3 12.0 10.7 13.0 11.2 8.4 7.3 8.1 10.3 13.0
* after interest-in-suspense
KEY DRIVERS
Real GDP Growth (%YoY) Interest Rates Movement MIER Consumer Confidence Index
21

22. Non-Interest
Income
Weak market conditions impacted non-interest income
70
RM ‟000
% YoY
60,337
60
1,795
4,755 Forex
51,510 +55.1%
(5.4%)
50 2,784
11,091
3,690 -22.4% Other Non-Operating
(7.2%)
40
11,749 +5.9% Investment Sales Gain
9,466 (22.8%)
3,651 -61.4% Brokerage Fees
30
(7.1%)
10,109
8,226
-18.6% Credit Cards
20 4,300 (16.0%)
4,137
-3.8% Wealth Management
(8.0%)
10 18,821 17,273
-8.2% Commission & Fees
(33.5%)
0
1Q10 1Q11 Note: ( ) denotes share of each component to total non-interest income 22

23. Asset
Quality
Asset quality continues to improve as economy recovers
Gross Impaired Loans Ratio - Old GP3 - lhs
Gross Impaired Loans Ratio - FRS 139 - lhs
%
Loan Loss Coverage - rhs
% • The Group adopted FRS 139 w.e.f. 1 April 2010.
4.6 100
As a result of more stringent criteria on
97.7%
classification of impaired loans, gross impaired
loans ratio increase by 0.1% to 3.9% as at 1 April
94.4% 2010
91.0%
• Asset quality continued to improve to 3.8% in
4.2 90
1QFY2011 compared to 3.9% in 4QFY2010
89.0%
• Loan loss coverage reduced from 94.4% to
85.6%
85.6% due to write-back of specific allowances
4.5% of RM49mil arising from the effect of adopting
3.9% FRS 139
3.8 80
4.1%
Note: For 1QFY2011 onwards, domestic loan impairment allowance is
3.9% computed based on the revised BNM guidelines, which
3.8% 3.8% incorporates the FRS 139 accounting principles
Collective allowance for domestic loans is computed based on
1.5% requirement under the transitional provisions of the BNM
guidelines on Classification and Impairment Provisions for
3.4 70 Loans/Financing issued in January 2010
1Q10 2Q10 3Q10 4Q10 1Q11
23

24. Transitional
FRS 139
Transitional provision - On 26 January 2010, BNM issued the revised BNM Garis Panduan 3 („BNM/GP3‟) -
“Classification and Impairment Provisions for loans/Financing” which sets out the minimum requirements on the
classifications of impaired loans/financing and allowances for loan/ financing impairment effective for annual
Accounting period beginning on or after 1 January 2010. The principles in the revised BNM/GP3 are consistent with
those applicable under FRS 139, except that there is a transitional provision.
Under FRS 139 Transitional provision Existing GP3
Individual impairment For individually significant accounts, net present Individual allowances (FRS 139) + Specific Existing GP3 allowances
allowances values of future cashflows are discounted based on allowances (GP3)
original effective interest rates and compared
against carrying amount
Collective impairment Estimating losses of a homogenous pool by deriving All loans, advances and financing
allowances Probability of Default and Loss Given Default
1.5% x {Total outstanding loans/financing –
Individual impairment allowances (FRS 139) –
Specific allowances (GP3)}
Stock broking and Share margin financing
No change to existing GP3 basis
Alliance Bank Group had elected for transitional provision and set the threshold for individual impairment assessment for
Corporate Banking, Commercial and SME loans, advances and financing.
For collective assessments, the transitional provision methodology has been agreed, i.e. under the transitional provision, for
loans, advances and financing, there is no change to the existing BNM GP3 basis.
24

25. Corporate
Responsibility
We are increasing our Corporate Responsibility activities
2010/11 Initiatives
Communities Environment
Employee Charity Day Carbon Audit
• Employee teams help local charities We will
• Work day and financial support • … measure our impact
provided by the Bank • … set targets and improve over time
• … and report transparently
Donation Matching Programme Sustainable Lending Policies
• Staff select from approved charity list • Voluntary standards under development
• Funding set aside for corporate • Encourage good practices/mitigate
matching negative impacts
• Equator principles a key reference
25

26. Key
Awards
Recognition of our transformation and investments
Month/Year AWARD AWARDED BY
May o Best Enterprise Transformation Award 2008 The Asian Banker
2009 o Best Data & Analytics Project Award 2008
October o Malaysia‟s Top 30 Most Valuable Brands Association of
2009 (MMVB09) 2009 Accredited
Advertising Agents
Malaysia (4As), The
Edge & Interbrand
December o 2009 National Award for Management Malaysia Institute of
2009 Account (NAfMA 2009) Accountants (MIA)
and The Chartered
Institute of
Management
Accountants (CIMA)
Malaysia
December o Finalist for Best New Card Launch MasterCard Hall of
2009 Fame
o Finalist for Most Innovative Card Marketing
Programme
February o Special Citation for Product Innovation Financial Insights
2010 (You:nique Card)
March o Excellence in Business Model Innovation The Asian Banker
2010 Award for 2009
April o Malaysia‟s Top 50 Brands Brand Finance
2010 26