This is the Half Year Analyst Briefing as at 30 September 2010 for Alliance Financial Group Berhad (AFGB).

1. ALLIANCE FINANCIAL GROUP
ANALYST BRIEFING
- 1HFY11 Results ended 30 September 2010 -

2. AGENDA
• 1HFY2011 Financial Performance
• Key Messages
• Questions & Answers
2

3. Financial
Performance
Maintaining earnings growth momentum
PBT Operating Profit PBT Operating Profit
RM ’mil RM ’mil
180 400
160.5
312.0
160
151.4 300 273.6 269.1
138.8 239.5
140 219.7
130.3
123.4 200
120 287.9
150.3
238.4
137.6 230.0
131.0 100
100 170.5
108.1 107.4
73.3
80 0
2Q10 3Q10 4Q10 1Q11 2Q11 1H09 2H09 1H10 2H10 1H11
• 2QFY2011 - PBT of RM137.6mil (+27.3% YoY) due to good run rate from most business divisions and
lower impairment charge
• 1HFY2011 - PBT of RM287.9mil (+68.8% YoY) was due to higher net income, lower overheads and
lower impairment charge
• 1HFY2011- overheads were contained at RM261.2mil, a saving of 2.9%
• 1HFY2011 - an impairment loss of RM0.7mil on a CLO (impairment loss of RM122.8mil in 1HFY2010)
3

4. Financial
Performance
Contribution by line of business
Net Income Total Loans NIM
1HFY10 1HFY11 1HFY10 1HFY11 1HFY10 1HFY11
Consumer 41.4% 43.9% 59.2% 59.1% 3.0% 3.4%
SME 20.9% 21.7% 19.6% 20.2% 3.8% 4.5%
2.6% (a) 2.9% (a)
Corporate & Commercial 16.1% 16.2% 19.8% 19.7%
3.7% (b) 4.1% (b)
Group Special Assets Management
2.7% 1.9% 1.4% 1.0% 6.6% 6.7%
(GSAM)
Investment Banking 3.0% 2.1% - - 1.7% 0.7%
Group Treasury 13.3% 12.9% - - 0.8% 0.5%
Alliance Investment Management
0.7% 0.6% - - - -
(AIM)
Consolidation Adjustment 1.9% 0.7% - - - -
Alliance Financial Group 100.0% 100.0% 100.0% 100.0% 2.4% 2.7%
Note: (a) refers to Corporate Banking
(b) refers to Commercial Banking
4

5. Financial
Performance
Higher income
Half Yearly Quarterly
(RM ’mil) 1HFY10 1HFY11 % YoY 2QFY10 2QFY11 % YoY
Net Interest Income 282.3 343.3 21.6% 145.0 174.2 20.1%
Islamic Banking Income 109.0 114.3 4.9% 49.6 58.7 18.3%
Non-Interest Income 117.4 115.6 -1.5% 55.6 64.0 15.1%
Net Income 508.7 573.2 12.7% 250.2 296.9 18.7%
• 2QFY2011 - benefited from 6.2% YoY loans growth, 75bps increase in OPR since March 2010 and
stronger non-interest income
• 1HFY2011 - driven by +6.2% loans growth and OPR hike but overall net income was dragged down
by weaker than expected non-interest income especially on brokerage fees and credit cards
business
5

6. Financial
Performance
GIM remains stable
6.0%
5.5%
5.0%
4.5%
4.0%
Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10
Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10
AFG 5.6% 5.8% 5.6% 5.4% 4.7% 4.4% 4.3% 4.4% 4.4% 4.7% 4.5%
KEY DRIVERS
Consumer SME Commercial Group Corporate
GIM GIM GIM GIM
6.1% 5.0% 5.3% 4.2%
5.8% 4.8% 4.9% 3.8%
5.5% 4.6% 4.5% 3.4%
5.2% 4.4% 4.1% 3.0%
Jun-09 Oct-09 Feb-10 Jun-10 Jun-09 Oct-09 Feb-10 Jun-10 Jun-09 Oct-09 Feb-10 Jun-10 Jun-09 Oct-09 Feb-10 Jun-10
6

7. Financial
Performance
Loans growth driven by SME
Loans breakdown by businesses 13,500
Consumer
10%
RM 'mil - lhs
FYE FYE 2010 FYE 2011 % QoQ - rhs
7%
(RM ’mil) % YoY 12,500
31/3/10 2Q 2Q 4%
11,500
1%
Consumer 12,800 12,172 12,897 6.0%
10,500 -2%
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
SME 4,235 4,025 4,413 9.6%
4,500
SME 15%
RM 'mil - lhs
Corporate & Commercial 4,123 4,068 4,301 5.7% % QoQ - rhs
4,200 5%
Exit Books 252 288 226 -21.6% 3,900 -5%
Total 21,410 20,553 21,837 6.2% 3,600 -15%
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
4,400
Corporate & Commercial 8%
• AFG loans growth of 6.2% in 2QFY2011 RM 'mil - lhs
% QoQ - rhs
4,200 5%
• AFG loans growth was driven by SME and supported by Consumer
Banking loans, which grew by 9.6% and 6.0% respectively 4,000 2%
• Exit book loans have decreased to RM226mil in 2QFY2011 from 3,800 -1%
RM288mil in 2QFY2010 3,600 -4%
7
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

8. Financial
Performance
Cost management - an area of priority
RM ’mil
160 56% Personnel Cost Establishment Costs
146.8 80% 40%
138.8 136.4 62.1% 62.3% 64.2% 63.3% 31.2%
60% 58.8% 30% 28.7%
53.0% 27.4%
25.7%
126.8 23.8%
124.8
40% 20%
120 52%
50.0% 20% 10%
50.6%
0% 0%
2Q10 3Q10 4Q10 1Q11 2Q11 2Q10 3Q10 4Q10 1Q11 2Q11
% YoY 2QFY10 1QFY11 2QFY11 % YoY 2QFY10 1QFY11 2QFY11
80 48%
Personnel 5.3% 0.0% 9.6% Establishment -8.7% -7.9% -0.5%
45.9%
Marketing Expenses Admin & General Expenses
45.2%
5% 12%
40 44% 10.4%
9.9% 9.8%
4% 3.7%
3.4%
3.1% 8%
3%
2.3% 5.2%
2% 1.9%
4%
2.8%
1%
0 40%
0% 0%
2Q10 3Q10 4Q10 1Q11 2Q11
2Q10 3Q10 4Q10 1Q11 2Q11 2Q10 3Q10 4Q10 1Q11 2Q11
Personnel Costs Establishment Costs
% YoY 2QFY10 1QFY11 2QFY11 % YoY 2QFY10 1QFY11 2QFY11
Marketing Expenses Admin & General Expenses
Personnel 22.3% -33.2% 46.9% Establishment 1.8% -64.4% 6.7%
CIR (%) - rhs 8

9. Financial
Performance
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
4.6 % % 95
94.4% • The Group adopted FRS 139 w.e.f. 1
FRS 139 April 2010
91.0%
90
• Asset quality remains stable at 3.8% in
89.0% 2QFY2011 with focus to improve on
4.2 collection system and credit risk
85.6%
85
83.2% • Loan loss coverage reduced from
85.6% to 83.2% in 2QFY2011
80
3.9%
3.8
4.1%
3.9% 3.8% 75
3.8% 3.8% Note: 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 Loans/Financing issued in
January 2010
3.4 70
2Q10 3Q10 4Q10 1Q11 2Q11 9

10. Financial
Performance
L/D ratio within acceptable levels
AFG‟s L/D ratio closer to industry average Increase in cost of funds due to competition
3.0%
AFG Industry Cost of Funds (%)
95% 2.7%
2.6%
2.6%
92.6%
2.4%
90.3% 90.6% 2.2% 2.1% 2.1%
2.0%
90%
1.9%
88.9% 1.8% 1.7%
1.7%
1.4%
85% 84.1% 2Q09 4Q09 2Q10 4Q10 2Q11
82.4% 82.8% Deposit rising on build up in fixed deposits
81.4%
82.2% CASA Fixed Deposits Money Market Deposits Others
81.3% 30,000
80% RM ’mil
78.9% 0.9%
79.2% 25,000 2.6% 1.9% 1.8%
2.2%
78.2% 9.9%
77.9% 20,000 2.4% 4.7% 4.9% 5.9%
76.6%
75% 15,000 51.7% 50.8% 53.8%
57.3% 51.8%
74.3% 10,000
73.5% 73.7%
5,000 40.9% 41.5% 41.5% 35.4%
38.1%
70%
0
2Q09 4Q09 2Q10 4Q10 2Q11 10
2Q10 3Q10 4Q10 1Q11 2Q11

11. Financial
Performance
Capital position remains strong
• AFG’s core capital and risk-
(RM ’mil) FY 2009 FY 2010 1HFY10 1HFY11 % YoY weighted capital ratio (RWCR)
continued to improve to 11.9%
and 16.1% in 1HFY2011
compared to 11.1% and 15.4%
Tier I Capital 2,234.1 2,429.2 2,351.7 2,657.6 13.0%
in 1HFY2010
• Total capital base of RM3.6bil,
Total Capital Base 3,167.3 3,339.3 3,253.8 3,584.1 10.2%
increased by 10.2% YoY. Tier I
capital represents 74% of total
capital, improved further to
RWCR (%) 14.7 15.4 15.4 16.1 +0.7 RM2.7bil
• Healthy capital position and is
Core Capital Ratio (%) 10.3 11.1 11.1 11.9 +0.8 in line with BASEL III
requirements
11

12. Financial
Performance
Key financial ratios
FY 2010 FY 2011
FY 2009 FY 2010
2Q 3Q 4Q 1Q 2Q *
• Net Interest Margin 2.8 2.7 2.6 2.7 2.8 2.8 2.8
Profitability
• Cost of Funds 2.7 1.9 2.0 1.9 1.7 1.7 2.1
• NFI / Total Income 22.4 24.2 24.0 24.5 24.2 19.4 20.9
Business • Cost Income Ratio 53.0 52.1 50.6 53.0 50.0 45.2 45.9
Performance • LD Ratio 76.6 90.6 90.3 88.9 90.6 92.6 82.8
• RWCR 14.7 15.4 15.4 15.2 15.4 15.5 16.1
Asset • Gross Impaired Loans 4.5 3.8 4.1 3.9 3.8 3.8 3.8
Quality • LLC 99.7 94.4 89.0 91.0 94.4 85.6 83.2
• ROAA 0.8 0.9 0.8 0.9 0.9 1.4 1.3
Shareholder
• ROAE 8.6 10.5 8.8 10.5 10.5 14.5 13.8
Value
• P / BV 0.9x 1.5x 1.4x 1.4x 1.5x 1.4x 1.5x
* Note: comparison made between FY2010 against 2QFY2011 12

13. AGENDA
• 1HFY2011 Financial Performance
• Key Messages
• Questions & Answers
13

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

15. Organisational
Chart
Key roles being filled
Consumer Banking SME Banking Group Chief Operating Officer Group Chief Financial Officer
Search in Progress Steven Kenneth Miller New Head Identified Eric Lee
Corporate & Commercial Corporate Strategy &
Islamic Banking Group Chief Credit Officer
Banking Corporate Communications
Tuan Haji Yahya Ibrahim Choo Joon Keong Timothy Daniels Low Choon Seong
Financial Markets Investment Banking Group Legal Group Chief Risk Officer
S. Gerard Anand A/L S.
Yeo Chin Tiong New CEO Identified Pang Choon Han
Sinnappah
Investment Management Group Human Resource Group Compliance
Michelle Chow Lai Pheng Teow Leong Wah
Nik Azhar Bin Abdullah
Group Internal Audit
Kay Chuan Seng
15

16. 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
• Performance and results oriented 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
16

17. Looking
Ahead
Over the medium term (3-5 years) we will ...
Y1 Y2 Y3
Gross
Impaired … continue to be better than industry 
Loans
… move to industry average (45 - 48%) through Y-o-Y
CIR
improvements, driven by:
• 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 2QFY2011 despite a competitive operating environment
• We are executing based on transformation and investments made
• Adoption of FRS 139 had a positive impact on opening reserves and asset quality remains
stable
• Growth to be in-line with the economic cycle supported by sustainable loans growth and higher
customer acquisition capacity to build further on fee income growth
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
• We are ensuring growth is value creating
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. Income
Statement
Income Statement (RM ’mil) 1HFY11 1HFY10 % YoY 2QFY11 1QFY11 % QoQ 2QFY10 % YoY
Interest Income 588.3 538.4 9.3% 311.6 276.7 12.6% 268.5 16.1%
Interest Expense (245.0) (256.1) -4.3% (137.4) (107.6) 27.7% (123.5) 11.3%
Net Interest Income 343.3 282.3 21.6% 174.2 169.1 3.0% 145.0 20.1%
Islamic Banking Income 114.3 109.0 4.9% 58.7 55.6 5.6% 49.6 18.3%
Non-Interest Income 115.6 117.4 -1.5% 64.0 51.5 24.3% 55.6 15.1%
Net Income 573.2 508.7 12.7% 296.9 276.2 7.5% 250.2 18.7%
Operating Expenses (261.2) (269.2) -3.0% (136.4) (124.8) 9.3% (126.8) 7.6%
Operating Profit 312.0 239.5 30.2% 160.5 151.4 6.0% 123.4 30.1%
Write back/Allowance for NBD (23.4) 53.8 -143.5% (22.8) (0.5) 4460.0% 79.8 -128.6%
Allowance for Impairment (0.7) (122.8) -99.4% (0.1) (0.6) -83.3% (95.1) -99.9%
Loan Impairment Allowances (24.1) (69.0) -65.1% (22.9) (1.1) 1981.8% (15.3) 49.7%
Profit before Taxation &
287.9 170.5 68.8% 137.6 150.3 -8.4% 108.1 27.3%
Zakat
Taxation & Zakat (75.0) (46.2) 62.3% (35.2) (39.8) -11.6% (30.0) 17.3%
Profit after Taxation & Zakat 212.9 124.3 71.3% 102.4 110.5 -7.3% 78.1 31.1%
20

21. Financial
Performance
NIM remains at 2.8% despite intense competition
3.2%
3.0%
2.8%
2.6%
2.4%
2.2%
Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10
Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10
AFG 3.1% 3.1% 3.0% 2.9% 2.6% 2.3% 2.6% 2.7% 2.8% 2.8% 2.8%
KEY DRIVERS
Consumer SME Commercial Group Corporate
NIM NIM NIM NIM
3.9% 5.0% 4.6% 3.3%
3.6% 4.6% 4.2% 2.9%
3.3% 4.2% 3.8% 2.5%
3.0% 3.8% 3.4% 2.1%
Apr-09 Aug-09 Dec-09 Apr-10 Aug-10 Apr-09 Aug-09 Dec-09 Apr-10 Aug-10 Apr-09 Aug-09 Dec-09 Apr-10 Aug-10 Apr-09 Aug-09 Dec-09 Apr-10 Aug-10
21

22. Loan
Drivers
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-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 Sep-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 6.2
*
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 12.5
* after interest-in-suspense
KEY DRIVERS
Real GDP Growth (%YoY) Interest Rates Movement MIER Consumer Confidence Index
22

23. Loans &
Asset Quality
Gross Gross
Loan Impaired Impaired
Economic Purpose % YoY % Share
(RM ’mil) Loans Loans Rate
(RM ’mil) (%)
Purchase of Securities 340.0 3.1% 17.0 2.0% 5.0%
Purchase of Transport Vehicles 789.4 -23.8% 10.3 1.2% 1.3%
Purchase of Landed Property 11,322.9 4.8% 314.9 37.7% 2.8%
Purchase of Fixed Assets 90.7 50.4% 0.2 0.0% 0.2%
Personal Use 2,094.0 30.0% 39.7 4.8% 1.9%
Credit Cards 652.7 -4.6% 14.1 1.7% 2.2%
Construction 224.1 -30.4% 14.0 1.7% 6.2%
Working Capital 5,700.1 10.9% 376.1 45.0% 6.6%
Others 623.0 9.9% 49.1 5.9% 7.9%
Total 21,836.9 6.2% 835.4 100.0% 3.8%
23

24. Loans by
LOB
Breakdown of loans by LOB
1H08 2H08 1H09 2H09 1H10 2H10 1H11
Consumer 51.4% 53.3% 53.4% 55.3% 59.2% 59.8% 59.1%
Corporate & Commercial 43.0% 42.9% 44.1% 20.3% 19.8% 19.2% 19.7%
SME n.a. n.a. n.a. 22.7% 19.6% 19.8% 20.2%
Exit Books 5.6% 3.8% 2.5% 1.7% 1.4% 1.2% 1.0%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Note: the separation of SME business from Commercial Banking since 2H09
24

25. Financial
Performance
Non-interest income - driven by improving market conditions
RM ’000 RM ’000
120 117,384 115,588
70 % YoY
8,148 64,078
8,244 Forex
-14.1%
12,072 7,205 60
5,460 (8.5%)
100
55,637 3,515 Other Non-Operating
-40.5%
(5.4%)
18,450 23,855 6,353
50 Investment Sales Gain
12,106 +64.5%
80 5,907 (18.9%)
7,450 Brokerage Fees
15,848 3,799 -40.5%
40 7,359 (5.9%)
60 16,655 8,429
6,382 Credit Cards
19,957 -14.4%
30 (13.2%)
9,049 4,912
9,848 Wealth Management
40 7,694 +44.7%
20
(7.7%)
3,394
43,130 25,857
20 35,215 10 Commission & Fees
16,394 +57.7%
(40.4%)
0 0
1H10 1H11 2Q10 2Q11 25
Note: ( ) denotes share of each component to total non-interest income

26. 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.
26

27. 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
27

28. Future
Opportunities
Market assessment indicates significant additional potential for AFG
• Leverage relationship and risk management strengths in SME and Corporate & Commercial
LOBs - key beneficiaries of improving economic environment
• Ongoing productivity improvements in Consumer Banking will have significant upside
• Islamic product suite a complement to conventional as sector continues to be actively
promoted
• Wealth management and other fee income opportunities to enhance margins
• Investment Banking and Asset Management capabilities currently under-utilised - attractive
businesses with high cross sell potential
• Significant value creation opportunity from Treasury
28

29. CLOs
Collateralised Loan Obligations (CLOs) are a matter of the past
(RM ’mil) Kerisma Idaman Capital CapOne
Total AFG’s Total AFG’s Total AFG’s
Issuance Exposure Issuance Exposure Issuance Exposure
175mil 240mil 10mil
• Total Issuance 1,000mil 800mil 1,000mil
(17.5%) (30%) (1%)
• Maturity Date Jun-09 Oct-11 Sep-10
Key points: • Matured • As at March 2010, the • Matured
Group had made
100% provision
• AFG’s exposure is fully • AFG’s exposure at
covered super senior level
29