The document provides an analyst briefing on the 1st quarter 2014 financial results of Alliance Financial Group. Some key points:
- Net income grew 14% to RM364.2 million driven by an 11.9% increase in net loans. However, net interest margins continue to be under pressure.
- Non-interest income increased 52.8% to RM125.9 million, with the non-interest income ratio at 35.4%. This was contributed to by a one-off bancassurance fee but also growing recurring fee income.
- Asset quality remains strong with net impaired loans at 1.1% and loan loss coverage at 84.7%. Overall the company is progressing well against its 3-
Bajaj Finance reported net profit of Rs 211.4 cr (+20.3% YoY) in Q1FY15 which was above expectations primarily due to higher than expected Net Interest Income (NII). NII increased 23.2% YoY and 23.0% QoQ with increase in consumer durable segment.
This document brings together a set of latest data points and publicly available information relevant for Technology. We are very excited to share this content and believe that readers will benefit immensely from this periodic publication immensely.
Bajaj Finance reported net profit of Rs 211.4 cr (+20.3% YoY) in Q1FY15 which was above expectations primarily due to higher than expected Net Interest Income (NII). NII increased 23.2% YoY and 23.0% QoQ with increase in consumer durable segment.
This document brings together a set of latest data points and publicly available information relevant for Technology. We are very excited to share this content and believe that readers will benefit immensely from this periodic publication immensely.
K to 12 ENGLISH Grade 3 (1rst Quarter QUIZ)LiGhT ArOhL
FIRST SUMMATIVE QUIZ in English Grade 3 K to 12 for First Quarter
Note: I just copied it from my daughter's quiz and uploaded it to here for some reference.
Recent budgeting developments - Mohammed Reezal Amad, MalaysiaOECD Governance
This presentation was made by Mohammed Reezal Amad, Malaysia, at the 14th OECD-Asian Senior Budget Officials Meeting held in Bangkok, Thailand, on 13-14 December 2018
TCS recently reported its Q1FY15 results, which were in line on revenue front & at operating level. However, the net profits were above estimates, aided by higher other income. Buy on dips.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
3. Clear niche in Consumer & SME Banking:
Increasing market share in target segments
with faster than industry loan growth
Winning market recognition
Focused on building sustainable long term
revenue growth:
Accelerated non-interest income activities
Sustainable CASA ratio
1.1% net impaired loans ratio
14.4% total capital ratio
Dividend policy to pay up to 50% of net profits
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. Progress:
Medium Term Targets
3
Dividend
Policy
Q1FY14
… net impaired loans to be better than industry average
Non-Interest
Income Ratio
… to increase non-interest income to 30% of total
revenue 35.4%
… move to industry average (45%-48%) through:
• targeted revenue growth
• improved productivity
… achieve industry average (14%-16%) through:
• focus on underlying earnings momentum
• effective capital management
Return on
Equity
Cost to Income
Ratio
Dividend
Policy
… pay up to 50% of net profits after tax, subject to
regulatory approvals and strong capital ratios
48.0%
13.5%
1.1%
1QFY2014: Good Progress Against Our 3-Year Medium Term Targets FY2012 – FY2015
≤ 50%
(Interim
7.5 sen)
Asset
Quality
Alliance Financial Group
1.9%
20.8%
48.3%
12.8%
26.2%
(Interim
3.3 sen)
FY2011
5. 4
^ Includes share of results of associates
Summarised
Income Statement
Sustainable & Consistent Financial Performance: 10.6% NPAT Growth
+6.1% rise in net interest income
from 11.9% net loans growth, but
interest margins remain under
pressure.
+52.8% growth in non-interest
income, contributed by:
Recurring income from
transaction banking, wealth
management, brokerage and
treasury activities
One-off sign-on fee in respect
of a bancassurance
arrangement amounting to
~RM30 million
+8.5% increase in overhead
expenses mainly due to:
investments in IT infrastructure
and human capital,
one-off rationalisation cost of
~RM24.8 million
Income Statement Q1FY14
RM mil
Q1FY13
RM mil
Change (y-o-y)
RM mil %
Net Interest Income 184.5 173.9 10.6 +6.1%
Islamic Banking Income 53.9 63.1 -9.2 -14.6%
Non-Interest Income 125.9 82.3 43.5 +52.8%
Net Income 364.2 319.3 44.9 +14.0%
Operating Expenses 174.9 161.1 13.8 +8.5%
Pre-Provision Operating Profit 189.3 158.2 31.1 +19.7%
(Allowance)/write-back of
losses on loans & financing
(5.4) 8.2^ -13.6 -165.9%
Pre-tax profit 183.9 166.4 17.5 +10.5%
Net Profit After Taxation 137.8 124.6 13.2 +10.6%
6. 5
Summarised
Balanced Sheet
Balance Sheet
Q1FY14
RM bil
Q1FY13
RM bil
Change
RM bil %
Total Assets 44.1 40.1 4.0 +10.1%
Treasury Assets~ 12.2 11.8 0.4 +3.4%
Net Loans 28.4 25.3 3.0 +11.9%
Customer Deposits 35.7 31.6 4.1 +13.0%
CASA Deposits 12.8 11.3 1.5 +13.6%
Shareholders’ Funds 4.1 3.9 0.2 +6.5%
Net Loans Growth
(y-o-y)
11.9% 14.6% - -2.7%
Customer Deposits Growth
(y-o-y)
13.0% 11.7% - +1.3%
+11.9% y-o-y net loans
growth: above industry -
targeting profitable Consumer
and SME segments.
+13.0% y-o-y customer
deposits growth, keeping
pace with loans expansion to
maintain healthy loans to
deposit ratio.
+13.6% y-o-y growth in CASA
deposits, contributing to
35.8% of total deposits.
Net Loans Growth at 11.9% Y-o-Y, Driven By Consumer Lending
Note:
Treasury assets comprise financial assets (HFT, AFS & HTM), derivative financial assets & placements with Fis
*Based on MFRS139 restated FY11’s net loans
7. 6
Key Financial Ratios
Non-interest income – improving
steadily each year with focus on
building recurring fee income
(excluding one-off bancassurance
fee, ratio ~29%).
Cost to income ratio – due to
continued investments in IT
infrastructure and human capital
(excluding one-off rationalisation
cost ~45%).
13.6% rise in interim dividends
paid, maintaining a dividend
policy to payout up to 50% of net
profits.
Asset quality better than industry
average.
Sustained CASA ratio in line with
expansion of CASA deposits.
Strong capitalisation under Basel
III.
Financial Ratios Q1FY14 Q1FY13 Change
Share-
holder
Value
Return on Equity 13.5% 13.0% +0.5%
Earnings per Share 9.0 sen 8.2 sen +9.8%
Interim Dividends per Share 7.5 sen 6.6 sen +13.6%
Net Assets per Share RM2.68 RM2.51 +0.17
Efficiency
Non-Interest Income Ratio 35.4% 27.3% +8.1%
Cost to Income Ratio 48.0% 50.5% -2.5%
Asset
Quality
Gross Impaired Loans Ratio 1.9% 2.4% -0.5%
Net Impaired Loans Ratio 1.1% 1.3% -0.2%
Loan Loss Coverage Ratio 84.7% 86.6% -1.9%
Liquidity
Loans to Deposit Ratio 80.7% 81.8% -1.1%
CASA Ratio 35.8% 35.6% +0.2%
Capital
Common Equity Tier 1
Capital Ratio
10.3% - -
Tier 1 Capital Ratio 11.7% 11.6% +0.1%
Total Capital Ratio 14.4% 14.7% -0.3%
8. 33.0%
41.5%
34.0% 33.7% 33.6%
35.8%
30%
35%
40%
45%
FY2009 FY2010 FY2011 FY2012 FY2013 1QFY14
CASARatio
8.6%
10.5%
12.8%
14.0% 13.8% 13.5%
5%
9%
13%
17%
FY2009 FY2010 FY2011 FY2012 FY2013 1QFY14
ReturnOn Equity
22.4% 22.4%
20.8%
27.0%
28.7%
35.4%
20%
25%
30%
35%
FY2009 FY2010 FY2011 FY2012 FY2013 1QFY14
Non-InterestIncome ratio
53.0%
52.1%
48.3%
47.6% 47.9% 48.0%
46%
48%
50%
52%
54%
FY2009 FY2010 FY2011 FY2012 FY2013 1QFY14
Cost To Income Ratio
Return on Equity
CASA Ratio Cost-to-Income Ratio
Non-Interest Income Ratio
7
Trend:
Key Financial Ratios
FY2012 & FY2011 restated for MFRS139
Improving Financial Performance, with Key Metrics in the Right Direction
10. 9
Steady Growth in Net Income Driven by Higher Loans Growth
Net income growth of RM44.9 million or
14.0% driven by:
+RM26.4 million increase in interest
income primarily from loans growth;
but offset by
+RM15.8 million rise in interest expense
from expansion in deposits and
competition for deposits
Excluding one-off gains, net income up
RM14.8 million or 4.6% from last year.
Net Income
319.3
339.0
319.7
355.0
364.2
290
300
310
320
330
340
350
360
370
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
RM milRM mil
1QFY14 vs 1QFY13
+ RM44.9 mil
+ 14.0%
Notes:
1st Quarter FY2014 – RM30.0 million one-off sign-on fee
from new bancassurance agreement
4th Quarter FY2013 – RM23.2 million from sale of 30%
shareholding in AIA-AFG Takaful
11. 10
Net Interest Margin Continues To Be Under Pressure
Continuing margin compression due to:
Run-off from repayments of higher yielding
loans:
Co-op loans continue to run down:
• RM477.0 million as at June 2013
• RM699.5 million as at June 2012
• RM1,023.1 million as at March 2011
Mortgage loan repayments
New mortgage loans at lower yield.
Housing loans as a % of total Loans:
• 39.5% as at June 2013
• 37.4% as at June 2012
Intensified competition for fixed deposits
Margin compression expected to continue.
Net Interest Margin
2.7% 2.7%
2.5%
2.4%
2.3%
1.9%
2.1%
2.3%
2.2%
2.3%
1.5%
2.0%
2.5%
3.0%
FY2010 FY2011 FY2012 FY2013 1QFY14
NIM and Cost of Funds Trend
NIM COF
12. 11
Non-Interest Income
Non-Interest Income Gaining Momentum
82.4
87.0
80.8
110.3
125.9
27.3% 27.0% 27.3%
33.0%
35.4%
0%
5%
10%
15%
20%
25%
30%
35%
0
20
40
60
80
100
120
140
160
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
Non-Interest Income Trend
Non Interest Income NII Ratio Continuing to build recurring non-interest
income from transaction banking, wealth
management and treasury activities.
+RM43.5 million or 52.8% increase over
1QFY13.
Non-interest income up RM13.5 million or
16.4%, excluding one-off non-recurring
bancassurance fee.
Non-interest income ratio at 29.6%,
excluding the one-off fees.
Bancassurance arrangement signed with
Manulife on 13 June 2013 being
operationalised.
Some early success in sales of investment-
linked insurance products and life policies.
RM mil
1QFY14 vs 1QFY13
+ RM43.5m
+ 52.8%
13. 12
Non-Interest Income
Recurring Investment and Fee Income
Non-Interest Income
Steady growth in fee income, particularly from transaction banking activities.
1QFY2014 sustained investment income from trading in securities.
Treasury trading activities focused on Government papers.
RM mil
Commission,
17.3%
Fee Income,
47.1%
Investment
Income,
31.2%
Others, 4.4%
Commission Fee Income
Investment Income Others
1QFY2014 Non-Interest Income
Composition
17.8 17.5 20.6 19.8 21.8
24.5 24.1
25.8 24.9
59.2
33.2 35.2 30.3 36.7
39.3
6.9 10.1 4.1
28.9
5.5
0
20
40
60
80
100
120
140
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
Commission Fee Income
Investment Income Other Income
82.4
125.9
86.9
80.8
110.3
14. Operating Expenses
13
Increase in operating expenses as Group continues to invest in IT infrastructure and human capital.
Personnel cost remains the main operating cost.
Excluding one-off rationalisation expense, personnel cost constitutes approxmately 64%.
Cost-to-income Ratio remains stable at 48.0%
RM mil %
Personnel
68.9%
Establish-
ment,
20.9%
Marketing,
1.8%
Admin,
8.4%
1QFY14
Personnel,
66.1%Establish-
ment,
22.4%
Marketing,
3.2%
Admin,
8.3%
1QFY13
Composition of operating expenses
OPEX Contribution
1QFY14
RM mil
1QFY13
RM mil
Change
RM %
Personnel 120.5 106.5 14.0 13.1
Establishment 36.5 36.1 0.4 1.2
Marketing 3.2 5.1 -1.9 -36.9
Administration 14.6 13.4 1.2 9.2
161.1 154.3 152.2
171.7 174.9
50.5
45.5
47.6 48.4 48.0
0
10
20
30
40
50
0
50
100
150
200
250
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
Operating expenses trend
Operating expenses CIR
1QFY14 vs 1QFY13
+ RM13.7 mil
+ 8.5%
15. 14
20.7 21.9
24.5
27.8 28.4
0
5
10
15
20
25
30
35
FY2010 FY2011* FY2012* FY2013 1QFY14
Net loans, Advances and Financing Trend
Gross Loans
Net Loans Growth Momentum at 11.9% Y-o-Y, Driven By Consumer Lending
RM bil
1QFY14 vs 1QFY13
+ RM 3.0 bil
+ 11.9%
Loans Composition by Business Segments
56.8% 55.0% 53.9% 55.7% 57.0%
20.5% 21.3% 21.9% 21.4% 21.1%
22.7% 23.7% 24.2% 22.9% 21.9%
0%
20%
40%
60%
80%
100%
FY2010 FY2011* FY2012* FY2013 1QFY14
Consumer SME Wholesale
Balanced loans composition with 57.0% Consumer; 21.1% SME and 21.9% for Wholesale Lending.
Effective management of interest rate risk: 10.4% of loan book is fixed rate (1QFY2013: 10.3%).
Note: * Restated for MFRS
16. 15
Residential Properties Expanded 18.3% Y-o-Y, Above Industry Loans Growth
Loans Growth:
Residential & Commercial
Residential properties: + RM1.9 billion or 18.3% y-o-y growth, higher than the industry growth rate of 12.8%.
Commercial properties: + RM0.3 billion or 8.7% y-o-y growth.
Focus on high growth areas i.e. Klang Valley, Penang and Johor, with attractive housing loan packages for the
right customers.
8.4 8.7
9.8
11.6 12.08.8%
3.3%
12.4%
18.9% 18.3%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
2
4
6
8
10
12
14
FY2010 FY2011* FY2012* FY2013 1QFY14
Loans Growth for Residential PropertyRM bil
2.7 2.8
3.4
3.7 3.8
-2.3%
6.1%
17.9%
11.0% 8.7%
-100%
-80%
-60%
-40%
-20%
0%
20%
0
1
2
3
4
5
FY2010 FY2011* FY2012* FY2013 1QFY14
Loans Growth for Commercial PropertyRM bil
1QFY14 vs 1QFY13
+ RM 1.9 bil
+ 18.3%
1QFY14 vs 1QFY13
+ RM 0.3 bil
+ 8.7%
Note: * Restated for MFRS
17. 16
Lending for SMEs Expanded 8.8% y-o-y; Resumed growth in Hire Purchase
Loans Growth:
SME & Transport Vehicles
SME Lending: + RM 0.5 billion or 8.8% y-o-y loans growth.
Lending to accelerate in 2nd Half FY2014, with flow-
through impact of ETP Projects.
Re-commenced Hire Purchase financing in April 2012,
focusing on new and non-national marques.
+RM266.2 million or 48.1% y-o-y growth from low
loans base.
4.4
4.8
5.5
6.0 6.1
5.0%
8.9%
14.4%
10.3% 8.8%
-40%
-30%
-20%
-10%
0%
10%
20%
0
2
4
6
8
FY2010 FY2011* FY2012* FY2013 1QFY14
Loans Growth for SME
RM bil
907.6
704.2
561.8
737.9
819.2
200
400
600
800
1000
FY2010 FY2011* FY2012* FY2013 1QFY14
Loans Growth for Transport VehiclesRM mil
1QFY14 vs 1QFY13
+ RM 0.5 bil
+ 8.8%
1QFY14 vs 1QFY13
+ RM 0.3 bil
+48.1%
Note: * Restated for MFRS
18. 17
Well Diversified & Secured Loans Portfolio
Well diversified and collateralised loan book.
Residential and non-residential properties account for 55.1% of gross loans portfolio:
41.8% of loans portfolio is for residential properties
13.3% for non-residential properties
20.9% of gross loans are for working capital.
Loans Composition by Economic Purposes
Composition
of Loans Portfolio
1QFY2014 1QFY2013
Purchase of
residential
property
39.3%
Working
capital
24.0%
Purchase of
non-
residential
property
13.6%
Personal
use
8.0%
Credit card
2.4%
Purchase of
securities
2.3%
Purchase of
transport
vehicles
2.1%
Others
8.2%
Purchase of
residential
property
41.8%
Working
capital
20.9%Purchase of
non-
residential
property
13.3%
Personal
use
6.7%
Credit card
2.0%
Purchase of
securities
4.5%
Purchase of
transport
vehicles
2.8%
Others
8.0%
19. 18
Continued Improvement In Asset Quality – Net Impaired Loans Ratio at 1.1%
806.3 775.5
629.2
579.2 559.7
FY2010 FY2011* FY2012* FY2013 1QFY14
Gross Impaired Loans
Asset Quality
(%)
RM52 million y-o-y net reduction in gross impaired loans, despite 11.5% y-o-y gross loans growth.
Low net impaired loans ratio of 1.1%.
Net Impaired Loans RatioGross Impaired Loans Ratio
FY2010 FY2011 FY2012 FY2013 1QFY14
3.8% 3.5% 2.5% 2.1% 1.9%
RM mil
1.8 1.9
1.4
1.1 1.1
FY2010 FY2011* FY2012* FY2013 1QFY14
Net Impaired Loans
FY2010 FY2011 FY2012 FY2013 1QFY14
1.8% 1.9% 1.4% 1.1% 1.1%
Note: * Restated for MFRS
20. Impairment Provisions
19
Credit charge for Loans & Financing starting to normalise
RM mil
Allowance for loans impairment has normalised.
94.4%
90.1% 87.7%
82.5% 84.7%
FY2010 FY2011* FY2012* FY2013 1QFY14
Loan Loss Coverage
RM’000 1QFY14 1QFY13
Individual assessment 6,620 (3,624)
Collective assessment 5,041 (239)
Bad debts recovered (11,735) (10,914)
Bad debts written off 5,172 4,504
Allowance for impairment on
property, plant & equipment
270 1,487
Allowance charge for/(write-
back of) losses on loans
5,368 (8,786)
Write-back of impairment
(CLO)
- (473)
Total charge/(write-back) 5,368 9,259
-8.8
-7.1
-12.9
4.2
5.4
-16
-12
-8
-4
0
4
8
1QFY13 2QFY13 3QFY13 4Q FY13 1QFY14
Net (Write-Back) / Allowance of Losses on
Loans & Financing
Write-back of impairment
Write-back/(allowance) of losses
Note:
Write-back of CLO provision nil for 1QFY14 and RM0.5mil for 1QFY13
* Restated for MFRS 139
Charge
Write-back
21. 20
Balance Sheet
Management
Effective Utilisation of Balance Sheet: Net Loans Constitute 64.3% of Total Assets
Total assets expanded by RM4.1 billion or
10.1% y-o-y.
20.7 21.9 24.5
27.8 28.4
6.3
12.3
11.5
12.6 12.2
4.7
1.9
3.7
3.3 3.5
0
10
20
30
40
50
FY2010 FY2011* FY2012* FY2013 1QFY14
Net Loans Treasury Assets Other AssetsRM bil
31.7
36.1
39.7
Composition of Total AssetsTotal Assets Trend
43.7 44.1
Net Loans
64.3%
Investment
securities
27.7%
Cash, ST
funds, Deposits
with FI
4.4%
Other Assets
3.6%
1QFY14
Net Loans
63.3%
Investment
securities
29.4%
Cash, ST
funds, Deposits
with FI
2.5%
Other Assets
4.8%
1QFY13
Deposits from
customers
78.9%
Deposits of
banks and
other FIs
7.4%
Shareholders'
Funds
9.7%
Other Liabilities
4.0%
1QFY13
Deposits from
customers
80.9%
Deposits of
banks and
other FIs
6.0%
Shareholders'
Funds
9.4%
Other Liabilities
3.7%
1QFY14
1QFY14 vs 1QFY13
+ RM4.1 bil
+ 10.1%
Note: * Restated for MFRS
Composition of Total Liabilities/ Equity
22. 21
Customer Deposits
RM bil
9.8
RM bil
Total customer deposits of RM35.7 billion as at 1QFY2014.
CASA deposits expanded by RM683 million y-o-y.
35.8% of funding from CASA.
Steady Y-o-Y Growth in CASA Deposits of 13.6% to RM12.8 billion
23.6
28.4
32.2
36.0 35.7
0
5
10
15
20
25
30
35
FY2010 FY2011* FY2012* FY2013 1QFY14
Customer Deposits Trend
1QFY14 vs 1QFY13
+ RM4.1 bil
+ 13.0%
8.1 8.0 9.1 10.4
1.7 1.6 1.7
1.7 1.7
12.2 14.6
15.6
17.1 16.6
1.6
4.2
5.8
6.8 6.3
41.5%
34.0% 33.7% 33.6%
35.8%
-30%
-24%
-18%
-12%
-6%
0%
6%
12%
18%
24%
30%
36%
42%
0
5
10
15
20
25
30
35
40
45
FY2010 FY2011* FY2012* FY2013 1QFY14
CASA Trend
DD SA FD NID,MMD,SD CASA ratio
11.19.6 10.8 12.1 12.8
Note: * Restated for MFRS
23.6
28.4
32.2
36.0 35.7
23. 22
Customer Deposits
Strong Liquidity Position with Loans to Deposits Ratio at 80.7%
(%)
Raised Loans to Deposit Ratio to 80.7% as at June 2013.
Our overall strategy is to eventually raise Loans to
Deposit ratio closer to 85.0%:
for more efficient balance sheet management; and
to be in line with industry
Demand
deposits
30.9% Saving
deposits
4.9%
Fixed/
investment
deposits
46.6%
Money
market
deposits
12.0%
Negotiable
instruments
of deposits
5.1%
Structured
deposits
0.6%
Deposits Composition by Product Type
Individuals
45.3%Business
enterprises
37.8%
Govt. &
statutory
bodies
3.6%
Domestic
financial
Institutions
5.1%
Others
8.3%
Deposits Composition by Customer Type
90.6
78.8 77.7 78.4
80.7
50
60
70
80
90
FY2010 FY2011* FY2012* FY2013 1QFY14
Loans to Deposit Ratio Trend
24. Return on Equity at 13.5%, with Consistent Growth in Earnings Per Share
23
Enhance
Shareholder Value
10.5
12.8
14.0 13.8 13.5
6
8
10
12
14
16
FY2010 FY2011* FY2012* FY2013 1QFY14
Return on Equity (After Tax)%
8.2
9.3
8.7 9.1 9.0
0
2
4
6
8
10
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
Earnings per share
sen
RM mil
124.6
141.9
132.8 138.9 137.8
0
30
60
90
120
150
180
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
Net Profit After TaxRM mil
166.4
190.8
178.6 178.3
184.0
150
165
180
195
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
Profit Before Tax
*Restated for MFRS139
25. Legal Entities
CET 1
Capital Ratio
Tier 1
Capital Ratio
Total Capital
Ratio
AFG 10.34% 11.74% 14.39%
ABMB 11.16% 12.54% 12.54%
AIS 13.04% 13.04% 13.81%
AIBB 81.08% 81.08% 81.20%
Basel III Minimum
regulatory capital
adequacy ratio
4.5% 6.0% 8.0%
Effective Capital
Management
24
Strong profit generation capacity to fund balance sheet expansion and 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 Basel III requirements.
15.40%
16.18%
15.13%
14.77%
14.39%
10%
11%
12%
13%
14%
15%
16%
17%
FY2010 FY2011* FY2012* FY2013 1QFY2014
Risk Weighted Capital Ratio
Basel III: Capital Adequacy Ratios by Legal Entities
*Restated for MFRS139
27. FY2014 Strategic Priorities
26
Our Priorities
Build on strengths and niche in
Consumer and Business Banking
Strengthen customer relationships
Enhance customer service, productivity
and efficiency
Ensure 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”
28. 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.html
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
27