KUALA LUMPUR: Alliance Financial Group Bhd posted a net profit of RM120.95 million for 2QFY12 ended Sept 30, 18.3% higher than RM102.27 million achieved in the same period last year.
“We are happy with our first half performance, which reflects the results of the strategic initiatives undertaken over the last 18 months in upgrading capabilities and systems to deliver earnings and value creation across our franchise in consumer and SME banking,” said Sng Seow Wah, group CEO of Alliance Bank Malaysia Bhd.
The group’s revenue rose by 5.9% to RM314.6 million for its second quarter from RM296.98 million in the corresponding period last year, raising operating profit by 6.7% to RM171.37 million from RM160.57 million.
For the quarter, net interest income saw a marginal improvement of 1% to RM175.98 million from RM174.16 million in the same period last year, whereas net income from its Islamic banking business grew by 11.6% to RM65.53 million from RM58.73 million.
For the six months to Sept 30, Alliance’s net profit increased 17.6% to RM250.51 million, or 16.4 sen per share.
Alliance said in a statement it anticipates the challenging external global environment to moderate growth, and increasing competition within the industry to further compress margins.
“The group is confident that it will be able to report satisfactory results for the current financial year ending March 31, 2012, as the business strategies that had been implemented will enable the group to further diversify its revenue streams, strengthen its operational and risk management infrastructure as well as customer service,” said Sng.
Net assets per share rose to RM2.32 as at Sept 30 compared with RM2.17 a year ago.
The group’s total gross loans grew by RM1.06 billion or 4.7% to RM23.50 billion as at Sept 30 from RM 22.44 billion at the same time last year, which the group attributed to the expansion in housing loans and small and medium enterprises (SME) lending.
Housing loans and financing grew by 2.9% to RM8.57 billion as at Sept 30 up from RM8.33 billion in the previous year. However, housing loans this year made up 36.5% of the group’s gross loans, down from last year’s 37.1%.
Loans to small and medium enterprises (SME) grew by 5.8% to RM5.06 billion, making up 21.5% of total gross loans as at Sept 30, up from RM4.78 billion last year.
Loans to individuals rose to RM12.62 billion representing 53.7% of total gross loans, an increase of 2.2% from RM12.35 billion in the previous year.
Gross impaired loans as a percentage of gross loans declined by 0.7 percentage points to 2.6%, compared with last year’s 3.3% as gross impaired loans fell 18.9% year-on-year (y-o-y) from RM741.32 million to RM601.26 million.
At the same time, the loan-to-deposit ratio fell to 77.3% as at September 2011, as compared with 82.8% a year ago, as deposits expanded by 15.3%.
This improvement was attributed mainly to expansion in customer deposits by RM4 billion or 15.3% y-o-y to RM30.4 billion, due primarily to deposits mobilised from business enterprises.
The group’s risk-weighted capital ratio remained strong at 15.83% with core capital at 11.9% at end-September.
Sng said: “The group’s capital ratios are well above the regulatory requirements as well as the requirements under Basel III, as the group continues to proactively manage its capital position to ensure that the capitalisation level is sufficient to meet its growth aspirations.”
Alliance’s shares were traded unchanged at RM3.50 on volume of 452,500 shares yesterday.
This article appeared in The Edge Financial Daily, November 17, 2011.
“We are happy with our first half performance, which reflects the results of the strategic initiatives undertaken over the last 18 months in upgrading capabilities and systems to deliver earnings and value creation across our franchise in consumer and SME banking,” said Sng Seow Wah, group CEO of Alliance Bank Malaysia Bhd.
The group’s revenue rose by 5.9% to RM314.6 million for its second quarter from RM296.98 million in the corresponding period last year, raising operating profit by 6.7% to RM171.37 million from RM160.57 million.
For the quarter, net interest income saw a marginal improvement of 1% to RM175.98 million from RM174.16 million in the same period last year, whereas net income from its Islamic banking business grew by 11.6% to RM65.53 million from RM58.73 million.
For the six months to Sept 30, Alliance’s net profit increased 17.6% to RM250.51 million, or 16.4 sen per share.
Alliance said in a statement it anticipates the challenging external global environment to moderate growth, and increasing competition within the industry to further compress margins.
“The group is confident that it will be able to report satisfactory results for the current financial year ending March 31, 2012, as the business strategies that had been implemented will enable the group to further diversify its revenue streams, strengthen its operational and risk management infrastructure as well as customer service,” said Sng.
Net assets per share rose to RM2.32 as at Sept 30 compared with RM2.17 a year ago.
The group’s total gross loans grew by RM1.06 billion or 4.7% to RM23.50 billion as at Sept 30 from RM 22.44 billion at the same time last year, which the group attributed to the expansion in housing loans and small and medium enterprises (SME) lending.
Housing loans and financing grew by 2.9% to RM8.57 billion as at Sept 30 up from RM8.33 billion in the previous year. However, housing loans this year made up 36.5% of the group’s gross loans, down from last year’s 37.1%.
Loans to small and medium enterprises (SME) grew by 5.8% to RM5.06 billion, making up 21.5% of total gross loans as at Sept 30, up from RM4.78 billion last year.
Loans to individuals rose to RM12.62 billion representing 53.7% of total gross loans, an increase of 2.2% from RM12.35 billion in the previous year.
Gross impaired loans as a percentage of gross loans declined by 0.7 percentage points to 2.6%, compared with last year’s 3.3% as gross impaired loans fell 18.9% year-on-year (y-o-y) from RM741.32 million to RM601.26 million.
At the same time, the loan-to-deposit ratio fell to 77.3% as at September 2011, as compared with 82.8% a year ago, as deposits expanded by 15.3%.
This improvement was attributed mainly to expansion in customer deposits by RM4 billion or 15.3% y-o-y to RM30.4 billion, due primarily to deposits mobilised from business enterprises.
The group’s risk-weighted capital ratio remained strong at 15.83% with core capital at 11.9% at end-September.
Sng said: “The group’s capital ratios are well above the regulatory requirements as well as the requirements under Basel III, as the group continues to proactively manage its capital position to ensure that the capitalisation level is sufficient to meet its growth aspirations.”
Alliance’s shares were traded unchanged at RM3.50 on volume of 452,500 shares yesterday.
This article appeared in The Edge Financial Daily, November 17, 2011.
