ALLIANCE FINANCIAL GROUP
ANALYST BRIEFING- 12 Months Ended 31 March 2010 -
Gaining Momentum
An update on the Management Relief Committee (MRC)
Terms of Reference
Objective o To deal with day-to-day matters to ensure proper management of the Bank in the
absence of the Group Chief Executive Officer (GCEO) and Group Chief Operating Officer
(GCOO)
Reporting Line o MRC reports directly to the EXCO and it consults the Board on all relevant matters in the
same manner usually expected of the GCEO or GCOO
Current
Membership
o Mr. Choo Joon Keong - Head, Corporate Banking
o Mr. Eric Lee - Group Chief Financial Officer
o Ms. Liew Swee Lin - Head, Consumer Banking
o Tn. Hj. Yahya Ibrahim - Chief Executive Officer, Alliance Islamic Bank Berhad
o Mr. Pang Choon Han - Acting Group Chief Risk Officer
o Mr. Choy Kah Yew - Relief Officer, Alliance Investment Bank Berhad
Other o MRC has all the powers of the GCEO as stipulated in the Approval Authority Limits
Manual, excluding loan approval powers
o Mr. Choo Joon Keong chairs MRC meetings. In his absence, other members elect the
chair from among themselves. Meetings are minuted
o The Committee meets as and when required
2
• FY2010 Financial Performance
AGENDA
• Business Strategy & Key Guidance
• Q & A
3
0
200
400
600
2007 2008 2009 2010
20
40
60
80
100
120
140
1Q10 2Q10 3Q10 4Q10
PAT Operating Profit
46.2
RM „m
RM „m
78.1
100.0
77.2
116.7
122.3130.3
138.8
107.4
380.1
228.9
301.5
430.2
547.5
495.4
509.9
• Group recorded PAT of RM301.5m, growth
31.7% YoY and above market consensus of
RM276.7m (as at March 2010)
• Q4 Operating Profit growth 41% YoY during the
same period last year
• Key drivers on full year basis:
• EPS stood at 19.7 sen in 2010 growth 32% YoY
Financial Performance
(a) Steady NIM and improve cost of funds -
better than industry average
(b) Islamic Banking income growth 49%
YoY
(c) Cost management - taming operating
expenses
(d) Improved NPL rate and reduction on
provision
Strong financial results, set good foundation for FY2011
4
0
300
600
900
1,200
2007 2008 2009 2010
0
100
200
300
1Q10 2Q10 3Q10 4Q10
Non-Interest Income Islamic Banking Income
Net Interest Income
1.85%
2.15%
2.45%
2.75%
3.05%
3.35%
3.65%
130
140
150
160
170
180
190
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10
Net Interest Income - lhs OPR - rhs
* % of net income
RM „m
RM „m
56%61%
55% 60%
23%20%
24%25%
21% 19% 21%15%
62% 63% 62% 58%
15% 11% 16% 23%
23% 26% 22% 19%
• Net interest income accounts for 59.6% of net
income, grew 6.5% YoY in 4Q. Islamic banking
income rose 77.5% from 52.9% period last year
• 4QFY10‟s non-interest income was badly affected
by the lower gain from realization of investment
securities
• AIS loan book accounts for 16.1% of Group‟s total
loans
Financial Performance
253.7 249.2
277.1 277.6
923.7
1,064.5
Revenue streams
RM „m
181 166
162157
142
153 154
166
5
-40
-25
-10
5
20
35
50
1,500
1,800
2,100
2,400
2,700
3,000
Dec-06 Sep-07 Jun-08 Mar-09 Dec-09
RM 'm - lhs
% QoQ - rhs
FYE FYE
RM 'm 31/3/09 31/3/10 1Q 2Q 3Q 4Q •YoY •QoQ
Consumer 11,499 12,800 11,869 12,172 12,621 12,800 11.3% 1.4%
Commercial
/SME 5,192 5,635 5,232 5,362 5,377 5,635 8.5% 4.8%
Corporate 2,567 2,723 2,577 2,731 2,698 2,723 6.1% 0.9%
Exit Books 333 252 306 288 276 252 -24.3% -8.7%
Total 19,591 21,410 19,984 20,553 20,972 21,410 9.3% 2.1%
% changeFYE 2010
Loans Breakdown by BusinessesConsumer
Commercial / SME
Corporate• AFG loans growth of 9.3% was slightly lower compared to industry of
10.2% as of March 2010
• AFG loans growth momentum holding relatively steady at +2.1%QoQ in
4QFY10, but slower compared to +2.8%QoQ in 2QFY10
• Exit book loans have gone down further to RM252m in 4QFY10 from
RM306m in 1QFY10
Financial Performance
Loans growth primarily driven by Consumer Banking
6
0
2
4
6
8
10
6,000
7,500
9,000
10,500
12,000
13,500
Dec-06 Sep-07 Jun-08 Mar-09 Dec-09
RM 'm - lhs
% QoQ - rhs
*
-12
-7
-2
3
8
13
3,500
4,000
4,500
5,000
5,500
6,000
Dec-06 Sep-07 Jun-08 Mar-09 Dec-09
RM 'm - lhs
% QoQ - rhs
*
* QoQ growth fluctuate for Mar-09 due to re-tagging of mass market
and shop-houses loans
2.2%
2.4%
2.6%
2.8%
3.0%
3.2%
Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10
Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10
AFG 3.1% 3.1% 3.0% 2.9% 2.6% 2.3% 2.6% 2.7% 2.8%
Industry 2.7% 2.7% 2.6% 2.7% 2.6% 2.6% 2.7% 2.7% 2.7%
KEY DRIVERS
3.0%
3.2%
3.4%
3.6%
3.8%
4.0%
Apr-09 Jul-09 Oct-09 Jan-10
Consumer
3.7%
3.9%
4.1%
4.3%
4.5%
Apr-09 Jul-09 Oct-09 Jan-10
SME
2.2%
2.4%
2.6%
2.8%
3.0%
Apr-09 Jul-09 Oct-09 Jan-10
Group Corporate
3.3%
3.5%
3.7%
3.9%
4.1%
4.3%
Apr-09 Jul-09 Oct-09 Jan-10
CommercialNIM NIM NIM NIM
Financial Performance
Improvement in NIM due to portfolio re-pricing and lower cost of funds
7
45%
50%
55%
60%
65%
4Q08 2Q09 4Q09 2Q10 4Q10
Cost Income Ratio
-20%
0%
20%
40%
60%
80%
100%
4Q08 2Q09 4Q09 2Q10 4Q10
Total Operating Expenses Growth
0%
20%
40%
60%
80%
100%
2006 2007 2008 2009 2010
Personnel Cost Establishment Costs
Marketing Expenses Admin & General Expenses
* % share of total operating expenses
54.0%
50.9%
53.0%
50.0%
Financial Performance
96.2%
6.1%
15.9%
0.6% 3.2%
-14.3%-1.7%
1.1%
49.4%
48.1%
50.0%
54.0%
62.1%
Sustaining business productivity with cost management
62.4% 58.6% 60.5% 59.8%
21.3% 27.1% 25.8% 28.2%
7.0% 3.1% 3.3% 3.0%
9.3% 11.2% 10.4% 9.0%
57.3%
25.2%
3.5%
14.0%
• Personnel costs remain the main operating cost
• Establishment cost, expansion branches upgrade and
expansion of business
• Improvement in cost management resulting total other
operating expense to decline 1% YoY
11.0%
8
0%
20%
40%
60%
80%
100%
2008 2009 2010
Fixed Variable (BLR)
Variable (Cost Plus) LD Ratio
0%
20%
40%
60%
80%
100%
2008 2009 2010
Due< 6M 6M - 12M 13M - 60M
-10%
-5%
0%
5%
10%
15%
20%
25%
0%
20%
40%
60%
80%
100%
2008 2009 2010
CA - lhs SA - lhsFD - lhs Others - lhsDeposit Growth - rhs
Due< 12M29%
13M - 36M4%
3YRS - 5 YRS7%
> 5 YRS60%
Financial Performance
17% 15% 16%
67%
16%
68%
17%
66%
18%
27% 27%34%
8% 6%7%
60%
55%52%
5%12% 7%
72% 73%70%
24% 25% 29%
4% 2% 1%
Majority 80%+ Loan are on Variable Rate CASA at top quartile of industry
Loan Maturity Structure - mostly long-term Fixed Deposit - heavily skewed less than 6 months
(78%) (77%)
(91%)
(12%)
(20%)
(-8%)
Balance sheet - strong fundamental
9
40%
60%
80%
100%
200
400
600
800
2006 2007 2008 2009 2010
Total Provision - lhs
Loan Loss Coverage (%) - rhs
200
400
600
800
1,000
1,200
1,400
1,600
Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10
Gross NPL Net NPLRM „m
Financial Performance
NPL - heading south
Gross & Net NPL Ratio - matching industry standard
719
700
397
469
320
RM „m
SP made - lhs
658
348
418
721
333
94.4%
99.7%
79.9%
67.5%
48.5%
0
3
6
9
12
Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10
AFG - Net NPL AFG - Gross NPL
Industry - Net NPL Industry - Gross NPL
10.810.1
8.87.9
7.06.0
5.4 5.24.5 4.5
4.1 3.9 3.8
Strong asset quality - a mirror image of conservative of risk management
10
10
12
14
16
1Q10 2Q10 3Q10 4Q10
AFG IndustryRWCR (%)
14.9
• AFG‟s core capital and RWCR continued to
improve to 11.1% and 15.4% in 4QFY10
compared to 11.0% and 15.2% in 3QFY10
• AFG‟s RWCR is 0.5 percentage higher than
industry average. Ability to take stresses,
evidently in higher equity-to-asset ratio (9.3% in
4QFY10 compared to 8.7% in 4QFY09)
• Capital Plan
• Maintained strong capital profile
• Increase economic modeling scenario
• BASEL II standard approach
• Review BASEL II & III framework
• Development of dynamic dividend policy
• Total Capital base of 3.3b increased 5% YoY.
Tier 1 Capital represents 73% improved to 2.4b
Financial Performance
9.5
10.0
10.5
11.0
11.5
2006 2007 2008 2009 2010
Core Capital
15.415.2
15.4
10.2
10.9
11.210.3
11.1
Strong capital base to sustain growth and industry challenges
14.814.6 15.4
14.9
11
FY09
Financial Performance
Profitability
Business
Performance
Shareholder
Value
• Net Interest
Margin
• Cost of Fund
• NFI / Total Income
• Cost Income Ratio
• LD Ratio
• RWCR
Asset
Quality
• Gross NPL
• Net NPL
• LLC
• ROAA
• ROAE
• P / BV
2.8
2.7
22.4
53.3
76.6
14.7
4.5
1.8
99.7
0.8
8.6
0.9x
FY10
2.6
1.9
24.2
52.1
90.6
15.4
3.8
1.8
94.4
0.9
10.5
1.5x
2.3
2.1
27.8
54.0
82.4
14.9
4.5
1.9
97.7
0.6
6.6
1.3x
2.6
2.0
24.0
50.9
90.3
15.4
4.1
2.0
89.0
0.8
8.8
1.4x
2.7
1.9
24.5
53.0
88.9
15.2
3.9
1.9
91.0
0.9
10.5
1.4x
2.8
1.7
24.2
50.0
90.6
15.4
3.8
1.8
94.4
0.9
10.5
1.5x
1Q 2Q 3Q 4Q
FY 2010Key Financial Ratio
12
• FY2010 Financial Performance
• Business Strategy & Key Guidance
• Q & A
13
Moving from transformation journey to sustainable growth
the “rising star”
-Tap on sustainable advantage
consolidating maximising
revenue
entity in need of
transformation• Smallest Local Bank
• Limited Competitive Advantage • Effective New Channels
• Stronger Pipeline
• High X-Sell
• Balanced Portfolio Mix
Restructuring
Sustainable Growth
1
3
2 Competitive
Positioning• New Business Models
• New Capabilities
• Build Benchstrength; Develop Talent
• Drive High Performance Culture
• Stronger Management
• Improve Portfolio Quality:
- Cleanup of Balance Sheet
- Revamp Risk Management
- Reshaping of Portfolio Mix
• Rebasing Cost Operating Platform
Unprofitable
Growing
assets
Shrinking
assets
Profitable
Business Strategy
14
Niche bank strategy remains with an emphasis on execution
Business Strategy
Priority Growth Areas for 2010/11
Drive Fee
Income
Grow “Koop”
Loans
Build Wealth
Management
Enhance
Cross-Selling
Consumer SME Commercial Corporate
Favourable Economic Environment
• Net beneficiary of rising interest rates
• Streamlining negative industry list
Strong Bank Assets• Customer relationships
• Risk capabilities
• Systems
• People
• Network
• Brand
Segment driven growth, leveraging shared expertise
Asset Mgt.Islamic TreasuryInv. Bank
15
Opportunity
Koop loans - expanding to capitalise on market opportunities
Business Strategy
Our
Approach
• Large, under-penetrated market of 1.2m civil servants with high
demand
• High profitability due to salary deduction mechanism
• AFG has built close to RM1b balances since February 2009,
8% of market share
• Excellent relationship with strong partner
• Attractive pricing - mid-level rates charged by other players.
Highest industry rate in the region of high teen and lowest rate
in the region of mid single digit
• Strong Asset Quality: NCL of 0%
• Target market of professional grade civil servants
• Sales force organised to deliver continued strong growth
16
Opportunity
Wealth Management - building a cross-Group business
Business Strategy
Our
Approach
• Wealth management is an attractive, high growth area of the
overall banking market, driven by economic growth and
increasing affluent customer segment
• AFG AUM size: RM783m vs. industry of RM204b (unit trust)
• AFG accounts for less than 1% of market share
• Our broad 2.5% market share provides us with an under-
leveraged customer opportunity
• Cross business unit WM team, leveraging on our segmented
relationship approach
• Financial Advisory Model - sales force training, incentives
• Sourcing best third party products, eg. Bancassurance
• Increased own-product availability through AIM
17
Our
Approach
Opportunity
Raising the contribution of Fee Income
Business Strategy
• Currently 24.2% of total income
• Industry average of 27.0% of total income
• Means to address tight industry NIMs
• Grow fee income at least as fast as non-fee income
• Opportunities exist in all business units
• Key product opportunities are in FX, Treasury and Wealth
Management
• Leverage Investment Banking and Treasury capabilities
18
NPLs
Loan
Growth
CIR
ROE
Dividend
Policy
Key Guidance
Over the medium term (3-5 years) we will ...
… return to above market growth (12%+ in FY2010/11)
… remain better than industry
… move to industry average (45 - 48%) through Y-o-Y
improvements, driven by:
• targeted revenue growth
• productivity focus on costs
… achieve industry average (14 - 16%) through Y-o-Y
improvements, driven by:
• focus on underlying earnings
• prudent capital management
… pay “as much as we can afford, whenever we can”
19
Engaging the
Marketplace
Responsible corporate conduct is at the heart of how we do business
Corporate Responsibility
Maintaining a
Conducive
Workplace
Developing our
Community
Conserving our
Environment
• Engaging
stakeholders and
investors
• Enhancing
shareholder value
• Nurturing customer
growth
• Undertaking good
corporate
governance
practices
• Highlighting
customers
• Competitive
employee benefits
• Robust human
capital
development
• Proactive
employee
engagement
• Stringent health
and safety
practices
• Encouraging
volunteerism
• Reaching out to
communities
• Fuelling
educational
pursuits
• Promoting local
arts and sports
• Lending support in
times of need
• Supporting worthy
environmental
causes
• Generating
awareness among
our employees
• Minimising our
carbon input
• Conserving natural
resources
• Encouraging
sustainable
business practices
20
Communities
In 2010/11 we will focus on two key areas
Corporate Responsibility
Environment
Employee Empowerment
• Community day programme
• Staff selected, local needs
• Corporate time and financial support
• Awards programme
Donation Matching Programme
• Staff select from approved charity list
• RM2m set aside for corporate matching
• Initial areas:
Children
Women
Physically & Mentally Challenged
Carbon Audit
We will
• … measure our impact
• … set targets
• … improve over time
• … and report transparently
Sustainable Lending Policies
• Voluntary standards under development
• Encourage good practices/mitigate
negative impacts
• Equator principles a key reference
21
Key Messages
Improving macro-economic conditions
Staying close to customers
Gaining momentum
• Stronger consumer and business sentiments will drive higher income growth, better job prospects
and support spending
• Risk remains with possibility of a double-dip recession
• Management hallmarks to include customer-friendly approach proven execution effectiveness and
lending commitments
• Product and service enhancements and mass affluent proposition
• Proportionate risk and balance sheet usage to drive better margins business
• Strong customers and business linkages - “ONE BANK”
• Diversification of income via stronger asset driven income and increased contribution from fee
income22
THANK YOU
Investor Relations
Alliance Financial Group7th Floor, Menara Multi-Purpose, Capital Square
8 Jalan Munshi Abdullah
50100 Kuala Lumpur, Malaysia
www.alliancebank.com.my/investorrelations.html
23
Appendices
24
• The Group‟s PBT increased by 34.8% compared to last financial year primarily due to increase in
operating profit by 2.9% and higher write-back of loan allowances and reduction of general allowance rate
to 1.5%
• The Group‟s other operating income decreased by 14.1% compared to last financial year largely attributed
to lower gain from the realization of investment securities despite higher brokerage fees income
Income statement2010 2009 YoY % 2008 2007 2006
Interest Income 1,094.4 1,250.6 -12.5% 1,216.4 1,122.1 1,015.8
Interest Expense (477.5) (596.0) -19.9% (579.5) (549.5) (525.7)
NIM 616.9 654.6 -5.8% 636.9 572.6 490.1
Islamic Banking 245.8 165.1 48.9% 115.2 135.0 76.8
Other Income 201.8 235.0 -14.1% 265.4 216.1 201.6
Net Income 1,064.5 1,054.8 0.9% 1,017.5 923.7 768.4
Operating Expenses (554.6) (559.4) -0.9% (470.1) (493.5) (437.1)
Operating Profit 509.9 495.4 2.9% 547.5 430.2 331.3
Writeback/Allowance for NBD 31.9 (115.1) 127.7% 60.7 (289.6) (598.1)
Allowance for Impairment (132.9) (76.9) 72.7% (106.1) 10.2 (16.4)
Total Provision (101.0) (192.1) -47.4% (45.4) (279.4) (614.5)
PBT 408.9 303.3 34.8% 502.1 150.8 (283.1)
Tax (107.4) (74.4) 44.3% (122.0) (43.4) 81.7
PAT 301.5 228.9 31.7% 380.1 107.4 (201.4)
RM ’m
25
• The Group‟s PBT decreased 18% compared to preceding quarter due to lower recoveries on loans and further
provision on CLO
• Q4 operating profit growth 41% YoY and PAT closed at 77.2m
Income statements
Q4 2010 Q4 2009 YoY% Q3 2010 QoQ Q2 2010 Q1 2010
Interest Income 269.6 300.6 -10% 271.3 -1% 276.4 276.1
Interest Expense (104.0) (143.9) -28% (117.5) -11% (123.5) (134.3)
NIM 165.6 156.8 6% 153.8 8% 152.9 141.8
Islamic Banking 71.0 40.0 78% 65.7 8% 49.6 58.9
Other Income 41.0 63.9 -36% 57.7 -29% 46.7 53.0
Net Income 277.6 260.6 6% 277.1 0% 249.2 253.7
Operating Expenses (138.8) (162.0) -14% (146.8) -5% (126.8) (137.0)
Operating Profit 138.8 98.7 41% 130.3 6% 122.3 116.7
Writeback/Allowance for NBD (19.4) (35.7) 46% (1.3) 1400% 80.9 (25.0)
Allowance for Impairment (12.0) (57.3) 79% 2.0 -709% (95.1) (29.2)
Total Provision (31.5) (93.0) -66% 0.7 -4739% (14.2) (54.2)
PBT 107.4 5.7 >100% 131.0 -18% 108.1 62.4
Tax (30.2) (4.8) >100% (31.0) -2% (30.0) (16.2)
PAT 77.2 0.8 >100% 100.0 -23% 78.1 46.2
RM ’m
26
RM'm
Total
Issuance
AFG's
Exposure
Total
Issuance
AFG's
Exposure
Total
Issuance
AFG's
Exposure
● Total Issuance 1,000m 175m (17.5%) 800m 240m (30%) 1,000m 10m (1%)
● Maturity Date
Kerisma Idaman Capital CapOne
Jun-09 Oct-11 Sep-10
Collateralised Loan Obligations (CLOs) are a matter of the past
• As at March 2010, the
Group had made 100%
provision
Key points: • Impairment
provision - none
• Small exposure of
AFG on it
• AFG has 100%
exposure at super
senior level
• Matured already
• AFG‟s exposure is fully
covered
27
Profit Equalisation Reserve (PER) is a mechanism introduced by BNM provided in “The Framework of Rate of
Return” (BNM/GP2-i). A tool unique to Islamic banking in Malaysia to manage the fluctuations in deposits rates. PER
is maintained up to 30% of total Islamic Banking Capital Fund. [Capital Fund @ 31/3/10: RM396m x 30% = RM119m]
Based on BNM advice, we are now moving towards BNM Direction on PER treatment by setting PER out of
Retained Profits.
50.1m (18.3)m
1Q
(2.3)m
2Q
+0.7m
3Q
(3.8)m
4Q
26.4m 26.4m
write back to P&L
RM26.4m is appropriated out of
retained profits to PER
PER is charged / (write back) to P&L according
to BNM/GP2-i
opening
1 Apr 09
closing
31 Mar 10
Prior Now
RESERVES
Non-distributable: RMm
Statutory reserve 493.5
Capital reserve 7.0
Revaluation reserve 7.4
Employees' share scheme reserve 12.3
Share premium 304.3
Profit equalisation reserve 26.4
850.9
Distributable:
Retained profits 594.8
1,445.7
28
-1
0
1
2
3
30
40
50
60
70
1Q10 2Q10 3Q10 4Q10
Revenue - lhsNet Profit Income - lhsNon-Fee Income Related - rhsFee Income Related - rhs
-1
1
3
5
7
9
120
160
200
240
2009 2010
50.655.1
61.7
66.7
201.7
234.1
RM „m
RM „m
• The contribution of net profit income is
evidently significant. It accounted for 73.9%
of total revenue in 4QFY10
• Key drivers for net profit income mainly
came from personal and housing financing.
Personal financing grew 180.4% YoY in
4QFY10 and accounted for 35% of total
Islamic loan books while housing financing
grew 120% YoY and took up 16.4% of AIS‟s
loan book in the same corresponding period
• As a percentage to Group‟s net income,
Islamic banking accounted for 23.1% in
FY10, versus 15.7% a year before
• AIS loan book accounted for 16.3% of
Alliance Bank‟s total loans, compared to
BNM‟s guidance of 15%
Islamic Banking - a new revenue driver for the Group
29
MIER Consumer Confidence IndexInterest Rates MovementReal GDP Growth (%YoY)
KEY DRIVERS
5
9
13
17
21
25
Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10
% Y
oY
Ch
an
ge
Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10
AFG 9.8 12.1 14.2 16.6 22.1 22.1 18.4 15.5 9.8 8.0 9.3
Industry 9.8 8.9 10.3 12.0 10.7 13.0 11.2 8.4 7.3 8.1 10.2 *
* after interest-in-suspense
Loans growth - strong performance against industry
30
Economic Purposes Loan (RM ’m) YoY % NPL (RM ’m) MIX G NPL
Purch. Securities 352 28.7% 16 2.0% 4.5%
Purch. Vehicles 908 -23.7% 14 1.7% 1.5%
Purch. Landed Prop 11,092 5.9% 336 41.7% 3.0%
Purch. Fixed Assets 66 8.9% 1 0.1% 1.5%
Personal Loan 2,008 73.7% 40 5.0% 2.0%
Credit Cards 685 6.2% 14 1.8% 2.0%
Construction 293 -6.5% 15 1.8% 5.1%
Working Capital 5,385 11.1% 322 39.9% 6.0%
Others 621 -0.9% 48 6.0% 7.7%
Total 21,410 9.3% 806 100.0% 3.8%
• Strong growth in Personal Loan - YoY 74%
• Securities is the 2nd biggest growth followed by Working Capital 11% YoY
• Mortgage and Working Capital contribute 80% of the portfolio
• Gross NPL remains better than the industry average across all sectors
Strong loans growth - loans by economic purposes
31
FRS139
• Parallel run and test in Q1 FY2010 - results in
line with expectation
• Adopt BNM‟s Transitional Provisions Method
(TPM) with effect from 1 April 2010
• Engaging external additions to verify opening
balance
Adopting BNM’s transitional provisions method (TPM)
32
Month/Year AWARD AWARDED BY
May 2009 o Best Enterprise Transformation Award 2008
o Best Data & Analytics Project Award 2008
The Asian Banker
October 2009 oMalaysia‟s Top 30 Most Valuable Brands
(MMVB09) 2009
Association of
Accredited
Advertising Agents
Malaysia (4As), The
Edge & Interbrand
December
2009
o2009 National Award for Management
Account (NAfMA 2009)
Malaysia Institute of
Accountants (MIA)
and The Chartered
Institute of
Management
Accountants (CIMA)
Malaysia
December
2009
o Finalist for Best New Card Launch
oFinalist for Most Innovative Card Marketing
Programme
MasterCard Hall of
Fame
February
2010
oSpecial Citation for Product Innovation
(You:nique Card)
Financial Insights
March 2010 oExcellence in Business Model Innovation
Award for 2009
The Asian Banker
33
Month/Year CSR Activities
April 2009 AIS contributed RM30k to PEMANGKIN
Alliance Bank donated RM40k to Wildlife Conservation
May 2009 Golden Bull Award 2009 - sponsorship for the seventh consecutive year
June 2009 Charity drive by Share Services - visit to the House of Joy in Puchong, Selangor
Alliance contributed RM30k as a co-sponsor to the MPH-Alliance Bank National
Short Story competition
AIMB contributed RM3k to the KL Marathon 2009 in support of sporting
excellence in the country
July 2009 Alliance Bank expanded network with facilities to cater to the physically
challenged
The Edge-Haven My Dream Home Contest 2009 - sponsorship for the third
consecutive year
AIMB donated RM5k to Kelab Sukan & Kebajikan Jabatan Kewangan dan
Perbendaharaan Negeri Malaysia
August 2009 Charity drive in aid of FSIC - contribution of 48 boxes filled with clothing, shoes, bags,
household utensils and a total 190kg of rice
Sale of Malaysia Book of Records for Charity which collected RM20k
September 2009 AIS hosted Buka Puasa for 40 orphans, where the children were taken out for
dinner and then a visit to the National Science Center
October 2009 Alliance contributed RM10k to the IRB Asian Rugby Seven Series held in Kota
Kinabalu
December 2009 Donations of RM15k to 2009 Indonesia & Philippines Emergency Appeal
January 2010 Donations of RM2.8k to purchase soft drink packets and light food to the
Thaipusam devotees
April 2010 Contribution of RM10k in support of Haiti Earthquake Emergency Appeal Fund34