KUALA LUMPUR (Nov 16): ALLIANCE FINANCIAL GROUP BHD [] (AFG) reported a strong set of financial results for the second quarter ended Sept 30, 2011, with earnings up 18.2% to RM120.95 million from RM102.27 million a year ago.
It said on Wednesday that revenue increased by 5.9% to RM314.60 million from RM296.98 million. Earnings per share were 7.9 sen compared with 6.7 sen.
For the first half, the earnings rose 8.2% to RM250.51 million from RM213 million while its revenue increased 8.9% to RM624.37 million from RM573.20 million.
At the pre-tax profit level, there was a 16.8% increase to RM336.3 million as the improvement was underpinned by growth in non-interest income, Islamic banking earnings and lower impairment charges.
Alliance Bank Malaysia Bhd Group chief executive officer Sng Seow Wah said: “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.”
For the 1H, the group reported a 13.8% or RM97.2 million growth in income from its lending operations, including Islamic Banking, due to the 8.1% year-on-year expansion in the net loans portfolio.
“However, the 25 bps rise in the Overnight Policy Rate (OPR) as well as the 3% rise in statutory reserve ratio (SRR) in the last 12 months, put pressure on interest margins, and hence, the net interest income, including Islamic banking, registered a marginal increase of RM14.4 million or 3.2%,” it said.
It said on Wednesday that revenue increased by 5.9% to RM314.60 million from RM296.98 million. Earnings per share were 7.9 sen compared with 6.7 sen.
For the first half, the earnings rose 8.2% to RM250.51 million from RM213 million while its revenue increased 8.9% to RM624.37 million from RM573.20 million.
At the pre-tax profit level, there was a 16.8% increase to RM336.3 million as the improvement was underpinned by growth in non-interest income, Islamic banking earnings and lower impairment charges.
Alliance Bank Malaysia Bhd Group chief executive officer Sng Seow Wah said: “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.”
For the 1H, the group reported a 13.8% or RM97.2 million growth in income from its lending operations, including Islamic Banking, due to the 8.1% year-on-year expansion in the net loans portfolio.
“However, the 25 bps rise in the Overnight Policy Rate (OPR) as well as the 3% rise in statutory reserve ratio (SRR) in the last 12 months, put pressure on interest margins, and hence, the net interest income, including Islamic banking, registered a marginal increase of RM14.4 million or 3.2%,” it said.
