By IM Research
1 year ago
Alliance Financial Group: Annual Report 2017
Ard, Islam, Islamic banking, Mal, Murabahah, Takaful , Zakat, Net Assets, Provision
Ard, Islam, Islamic banking, Mal, Murabahah, Takaful , Zakat, Net Assets, Provision
- 2017 A N N U A L R E P O R T
- O U R V I S I O N , K E Y B E H AV I O U R S & B R A N D AT T R I B U T E S OUR VISION OUR KEY B E H AV I O U R S BUILDING ALLIANCES TO IMPROVE LIVES C O MMIT T O E XC E L L E NC E TA K E O W N E R S HIP C O LL A B O R AT E IN N O VAT E & S IM PL IF Y U N D E R S TA N D A ND AC T OUR BRAND ATTRIBUTES # 1 IN IN N O VAT ION # 1 IN B E IN G FA S T, SIMPL E & R E SPONSIVE # 1 IN B E IN G A LIGNE D T O C U ST OME R S’ NE E DS C O R P O R AT E PROFILE Alliance Financial Group Berhad was incorporated in Malaysia on 7 April 1966 and was listed on the Main Market of Bursa Malaysia Securities Berhad (then known as Kuala Lumpur Stock Exchange) on 6 July 1979. The Group is principally involved in the provision of banking and financial services through Alliance Bank Malaysia Berhad. Alliance Bank Malaysia Berhad, together with its subsidiaries, Alliance Investment Bank Berhad and Alliance Islamic Bank Berhad, provide a wide range of financial products and services in consumer banking, SME banking, corporate and commercial banking, Islamic banking, investment banking, and stockbroking businesses.
- W H AT ’ S I N S I D E THIS REPORT CONTENTS 01 C O R P O R AT E S E C T I O N Vision, Key Behaviours & Brand Attributes Corporate Profile History of Alliance Financial Group / p.02 Corporate Information / p.04 Corporate Structure / p.05 Products and Services / p.06 Financial Highlights / p.10 02 LEADERSHIP Directors / p.14 Chief Executive Officer / p.27 Key Senior Management / p.28 03 PERSPECTIVES Statement by the Chairman of Alliance Financial Group Berhad / p.36 Management Discussion & Analysis / p.40 Awards and Recognition / p.56 Calendar of Significant Events / p.58 Media Highlights / p.66 04 A C C O U N TA B I L I T Y Statement of Corporate Governance / p.68 Sustainability Statement / p.78 Audit Committee Report / p.89 Statement on Risk Management and Internal Control / p.92 Risk Management / p.93 Additional Compliance Information / p.100 05 FINANCIAL SECTION Financial Statements – Statement of Board of Directors’ Responsibilities / p.102 – Directors’ Report / p.103 – Statement by Directors / p.109 – Statutory Declaration / p.109 – Independent Auditors’ Report / p.110 – Statements of Financial Position / p.115 – Statements of Comprehensive Income / p.116 – Consolidated Statements of Changes in Equity / p.117 – Statement of Changes in Equity / p.119 – Consolidated Statements of Cash Flows / p.120 – Statement of Cash Flows / p.122 – Notes to the Financial Statements / p.123 Basel II Pillar 3 Report Disclosure / p.230 06 A D D I T I O N A L I N F O R M AT I O N List of Properties / p.275 Directory / p.278 Analysis of Shareholdings / p.284 Substantial Shareholders / p.286 Directors’ Shareholdings / p.286 07 NOTICE AND FORM Notice of Annual General Meeting / p.287 Form of Proxy VIEW OUR REPORT ONLINE Our Annual Report, Accounts and other information about Alliance Financial Group Berhad can be found at www.alliancefg.com
- 02 ALLIANCE FINANCIAL GROUP BERHAD (6627-X) HISTORY OF ALLIANCE FINANCIAL GROUP 50s - 70s 1 95 8 Banque de L’Indochine commenced operations in Malaya with its first branch in the Selangor Kwangtung Association Building, Jalan Pudu, Kuala Lumpur. This branch was subsequently relocated to Jalan Raja Chulan, Kuala Lumpur, in 1975. 1 95 9 Banque de L’Indochine opened a sub-branch at Jalan Batu, Kuala Lumpur (now known as Jalan Tunku Abdul Rahman). 1 97 5 The name of the Bank was changed to Banque de L’Indochine et de Suez (Banque Indosuez). In the same year, Banque Indosuez acquired a building in Jalan Raja Chulan, Kuala Lumpur, to serve as its headquarters. 90s 1998 By February 1998, the Bank had a network of 34 branches nationwide, including Sabah and Sarawak. 1999 Multi-Purpose Bank Berhad was selected to be one of the anchor banks in the Malaysian government’s bank consolidation initiative. MultiPurpose Bank Berhad successfully anchored the merger with International Bank Malaysia Berhad, Sabah Bank Berhad, Sabah Finance Berhad, Bolton Finance Berhad, Amanah Merchant Bank Berhad, and Bumiputra Merchant Bankers Berhad. 21st Century 2001 The Alliance Banking Group was established on 19 January with the successful merger of seven financial institutions. The newly-merged entity’s name and logo were unveiled to the public for the first time as the Alliance Banking Group comprising Alliance Bank Malaysia Berhad (Alliance Bank), Alliance Finance Berhad, Alliance Merchant Bank Berhad, and Alliance Unit Trust Management Berhad. 2004 On 1 August, Alliance Finance Berhad merged with Alliance Bank. Consequently, Hire Purchase is now offered at all Alliance Bank’s retail branches nationwide. 2005 On 1 January, Alliance Merchant Bank Berhad acquired 100% equity interest in Kuala Lumpur City Securities (KLCS). 2006 In August, Alliance Merchant Bank Berhad changed its name to Alliance Investment Bank Berhad (AIBB). In December, KLCS merged with AIBB to offer a full suite of investment banking services. 80s - 90s 1 982 1 985 Malaysian French Bank Berhad was incorporated to assume the banking business of the two local branches of Banque Indosuez. The incorporation was the result of the French government’s nationalisation of Banque Indosuez and also of the subsequent restructuring of the Bank’s businesses in Malaysia to comply with local banking regulations. The Bank established its “first” branch in Taman Maluri, Kuala Lumpur. In the same year, eight more branches were opened throughout the country. 1 986 1 995 During this time, 16 branches were established nationwide. 1 996 Malaysian French Bank Berhad changed its name to Multi-Purpose Bank Berhad.
- 03 2017 ANNUAL REPORT 21st Century 2 007 In April , Alliance Unit Trust Management Berhad merged with Alliance Capital Asset Management Berhad to form Alliance Investment Management Berhad (AIMB). Under the terms of the agreement, Alliance Bank owns 70% equity stake in AIMB. In June, Alliance Islamic Bank Berhad (AIS) was incorporated as a wholly-owned subsidiary of Alliance Bank. In conjunction with the change of name of its holding company from Malaysian Plantations Berhad to Alliance Financial Group Berhad on 31 August, Alliance Banking Group underwent a major rebranding exercise and was renamed Alliance Financial Group (the Group). 2 00 8 AIS commenced its Islamic banking business on 1 April after assuming the entire Islamic banking business portfolio of Alliance Bank. 2 01 1 In January, Alliance Bank and AIA Berhad entered into a joint venture to form AIA AFG Takaful Berhad which offers a range of Takaful savings, protection and investment products. Under the terms of agreement, Alliance Bank owns 30% equity stake in AIA AFG Takaful Berhad. 2 01 3 In March, Alliance Bank completed the sale of its 30% equity stake in AIA AFG Takaful Berhad. In April, Alliance Bank completed the sale of its 70% shareholding in AIMB to KAF-Seagroatt Campbell Berhad. AIMB ceased to be part of the Group following the completion of the sale. In June, Alliance Bank entered into a 10-year bancassurance partnership with Manulife Insurance Berhad. With this partnership, Alliance Bank is now able to provide a comprehensive bancassurance product suite to its customers. 2 01 4 In May, AIBB acquired a 51% equity stake in HwangDBS Vickers Research Sdn Bhd (HDBSV). HDBSV was later renamed AllianceDBS Research Sdn Bhd. Today NOW The Alliance Financial Group, comprising Alliance Bank Malaysia Berhad, Alliance Investment Bank Berhad and Alliance Islamic Bank Berhad is a dynamic, integrated financial services group offering banking and financial services through its consumer banking, SME banking, corporate and commercial banking, Islamic banking, investment banking, and stockbroking businesses. It provides easy access to its broad base of customers throughout the country via multi delivery channels which include retail branches, Privilege Banking Centres, Islamic Banking Centres, Business Centres, Investment Bank branches, and direct marketing offices located nationwide as well as mobile and Internet banking. With over five decades of proud history in contributing to the financial community in Malaysia with its innovative and entrepreneurial business spirit through its principal subsidiaries, the Group is committed to delivering the best customer experience and creating long-term shareholder value.
- 04 ALLIANCE FINANCIAL GROUP BERHAD (6627-X) C O R P O R AT E I N F O R M AT I O N DIRECTORS D AT U K O H C H O N G P E N G Chairman, Independent Non-Executive Director KUNG BENG HONG Non-Independent Non-Executive Director O U S H I A N WA E I Independent Non-Executive Director LEE AH BOON Non-Independent Non-Executive Director TA N C H I A N K H O N G Independent Non-Executive Director (Appointed on 1 August 2016) STEPHEN GEH SIM WHYE Independent Non-Executive Director (Retired on 5 August 2016) CHIEF EXECUTIVE OFFICER REGISTRAR PRINCIPAL BANKER Joel Kornreich Alliance Bank Malaysia Berhad GROUP COMPANY SECRETARY Lee Wei Yen (MAICSA 7001798) REGISTERED OFFICE 3rd Floor, Menara Multi-Purpose Capital Square No. 8, Jalan Munshi Abdullah 50100 Kuala Lumpur, Malaysia Tel : 03-2604 3333 Fax : 03-2694 6200 Website : www.alliancefg.com Email : email@example.com Shareworks Sdn Bhd No. 2-1, Jalan Sri Hartamas 8 Sri Hartamas 50480 Kuala Lumpur, Malaysia Tel Fax : 03-6201 1120 : 03-6201 3121 AUDITORS PricewaterhouseCoopers Chartered Accountants Level 10, 1 Sentral, Jalan Rakyat Kuala Lumpur Sentral 50470 Kuala Lumpur, Malaysia BURSA MAL AYSIA STOCK NAME/CODE AFG/2488 INTERNATIONAL SECURITIES IDENTIFICATION NUMBER (ISIN) MYL2488OO004
- 05 2017 ANNUAL REPORT C O R P O R AT E STRUCTURE as at 2 5 May 2 01 7 100 % 100% 51% Alliance Bank Malaysia Berhad Alliance Investment Bank Berhad AllianceDBS Research Sdn Bhd 100% Alliance Islamic Bank Berhad 100% Alliance Direct Marketing Sdn Bhd 100% AllianceGroup Nominees (Tempatan) Sdn Bhd 100% AllianceGroup Nominees (Asing) Sdn Bhd This chart features the main operating companies and does not include inactive companies and companies that are under members’ voluntary liquidation.
- 06 ALLIANCE FINANCIAL GROUP BERHAD (6627-X) PRODUCTS AND SERVICES A L L I A N C E B A N K M A L AY S I A B E R H A D PERSONAL BANKING Wealth Management Deposits • Savings Account/Basic Savings Account • Alliance Buddy • Alliance Senior Savers • Alliance My eSaving Account • Current Account/Basic Current Account • Alliance Hybrid Account • Fixed Deposit • Alliance FDGold • eFD (via allianceonline) • Alliance XChange Account (via allianceonline) • Alliance XChange FD (via allianceonline) • allianceonline Banking • Alliance Cash2Home • Alliance SavePlus Account (via allianceonline) • Foreign Currency Current Account • Foreign Currency Fixed Deposit Unit Trust • Money Market Funds • Bond Funds • Balanced Funds • Equity Funds Retail Bond • MYR-denominated Retail Bond • Foreign Currency Retail Bond (available in all major currencies) Structured Investment • Interest-rate Linked Structured Investment • Equity Linked Structured Investment • Equity Linked Convertible Structured Investment • Dual Currency Investment Share Trading & Investment Lending • Alliance Share Margin Financing −Margin + Trading 2-in-1 Account −External Margin Account −Foreign Share Margin Financing • Alliance Share Trading −Cash Trading Account −Collateralised Trading Account −T+7 Trading Account −Alliance Foreign Share Trading • ESOS/IPO Placement Financing • Portfolio Financing • Dedicated Omni-Channels to Serve Alliance Bank Customers −Call N Trade through Alliance Bank’s Share Trading Centre (STC) via Account Relationship Manager −Internet Trading via allianceonline Stockbanking −Mobile Trading via Alliance iStock Application Bancassurance • Safe Assure • Home Assure • Care Assure • Mortgage Reducing Term Assurance • Mortgage Level Term Assurance • Mortgage Reducing Term Takaful • Elite Income Saver • Elite Max Saver • Elite Prime Life • Elite Cash Saver • Elite Smart Life • Elite Smart Kids • Elite Credit Shield • Elite Global Annuity • Fire/House Owner (Conventional & Takaful) • Motor Insurance (Conventional & Takaful) • Personal Loan Reducing Team Assurance • Personal Loan - Group Credit Family Takaful Conventional Loans • Alliance One Account • Alliance Conventional Home Loan • Alliance Conventional Commercial Property Loan • Alliance Conventional Oil Palm Plantation Financing • Alliance CashFirst Personal Loan • Alliance Hire Purchase Cards Credit Cards • Alliance Visa Infinite Credit Card • Alliance Platinum Credit Card • Alliance Gold and Classic Credit Cards • Alliance You:nique Rates Credit Card • Alliance You:nique Rewards Credit Card • Alliance You:nique Rebates Credit Card • Alliance Basic Credit Card • Alliance Allianz Insurance Gold & Platinum Credit Cards • Alliance Chinese Independent School (CIS) Credit Card • Alliance CPA Australia Gold Credit Card • Alliance Business Platinum Credit Card • Alliance Visa Infinite Business Credit Card Debit Cards • Alliance Hybrid Standard Debit Card • Alliance Hybrid AP Platinum Debit Card • Alliance Hybrid PB Platinum Debit Card • Alliance My eSaving Debit Card • Alliance EcoWorld Debit Card
- 07 2017 ANNUAL REPORT BUSINESS BANKING SME Credit Facilities • Working Capital Financing • Equipment Financing • Business Premises Financing • Oil Palm Plantation Financing • Schemes promoted by CGC/BNM/Government • Foreign Exchange • SME Express Cash Trade Facilities • Letter of Credits • Trust Receipts • Foreign Currency Trade Loan • Bankers Acceptances • Export Bills Purchased/Discounting • Export Credit Refinancing • Export LC Negotiation • Collection Bills • Shipping Guarantees • Export LC Advising/Confirmation • Bank Guarantees (BGs) • Promissory Notes Bancassurance • Commercial Line General Insurance • Keyman Credit-Life Insurance/Return of Premium Rider • Alliance Business Shield/Biz Assure Business Credit Card • MyBusiness Platinum Credit Card • Business Platinum Credit Card • Visa Infinite Business Credit Card Cash Management • Deposit Account Offering −Business Current Account −Business Fixed Deposit −Business Foreign Currency Current Account −Business Foreign Currency Fixed Deposit • Account Management (via Alliance BizSmart) −Consolidated Account Overview −Transaction History Download −e-Statement −Tax Invoice/Merchant Report • Payment Management (via Alliance BizSmart) −Bulk Payment −Bulk Payment with Payment Advice −Payroll (Salary/EPF/SOCSO/Monthly Contribution/PCB-LHDN Payment) −Fund Transfer (Pay to Alliance Bank/Interbank GIRO/RENTAS) −Foreign Telegraphic Transfer −Prepaid Reload −Bill Payment (JomPAY/Direct Bill) −MyGST Payment −E-Dividend Payment −Zakat Selangor • Collection Management −Payee Corporation Service (FPX Payment) −Auto Debit Service −JomPAY Collection −Biz-Xpress Card: Deposit cum Withdrawal function via self service terminal (ATM/CDM/CES) • Liquidity Management −Auto Sweeping Service −Business Rewards Services • Alliance BizSmart Online Banking Corporate & Commercial Credit Facilities • Working Capital Financing • Term Loan • Bridging Loan • Syndicated Loan • Business Premises Financing • Supplier Financing • Foreign Currency Loan Trade Facilities • Letter of Credits • Trust Receipts • Foreign Currency Trade Loan • Bankers Acceptances • Export Bills Purchased/Discounting • Export Credit Refinancing • Export LC Negotiation • Collection Bills • Shipping Guarantees • Export LC Advising/Confirmation • Bank Guarantees (BGs) • Promissory Notes Business Credit Card • Business Platinum Card • Visa Infinite Business Credit Card Foreign Exchange Bancassurance Interest Rate Swap Cash Management • Deposit Account Offering −Business Current Account −Business Fixed Deposit −Business Foreign Currency Current Account −Business Foreign Currency Fixed Deposit • Account Management (via Alliance BizSmart) −Consolidated Account Overview −Transaction History Download −e-Statement −Tax Invoice/Merchant Report • Collection Management −Payee Corporation Service (FPX Payment) −Auto Debit Service −Bulk Cheque Collection Service −Cash in Transit −Cash Concentration Solution −Biz-Xpress Card: Deposit cum Withdrawal function via Self-Service Terminals (ATM/CDM/CES) −JomPAY Collection
- 08 ALLIANCE FINANCIAL GROUP BERHAD (6627-X) PRODUCTS A N D S E R V I C E S (Cont’d) A L L I A N C E B A N K M A L AY S I A B E R H A D • Liquidity Management −Auto Sweeping Service −Business Rewards Services • Payment Management (via Alliance BizSmart) −Prepaid Reload −Payroll (Salary/EPF/SOCSO/Monthly Contribution/PCB-LHDN Payment) −Bulk Payment −Bulk Payment with Payment Advice −Fund Transfer (Pay to Alliance Bank/Interbank GIRO/RENTAS) −Foreign Telegraphic Transfer −Bill Payment (JomPAY/Direct Bill) −MyGST Payment −E-Dividend Payment −Zakat Selangor • Alliance BizSmart Online Banking FINANCIAL MARKETS • Foreign Exchange Transactions • Hedging Solution −Currency Options −Interest Rate Swap −Cross-currency Swap • Structured Investments • Money Market Deposit • Money Market Deposit – Islamic • Negotiable Instrument of Deposit • Negotiable Islamic Deposit Certificate • Banker Acceptances • Islamic Acceptance of Bills ALLIANCE ISLAMIC BANK BERHAD Deposits • Basic Savings Account-i • Basic Current Account-i • Savings Account-i • Current Account-i • Alliance My eSavings Account-i • Junior Smart Saver-i • Alliance Term Deposit-i • Junior Smart Term Deposit-i • Alliance Hybrid Account-i • eATD (via allianceonline) • allianceonline Banking • Alliance Cash2Home • Alliance SavePlus Account-i (via allianceonline) Consumer Financing • i-Wish Home Financing-i • Home Complete-i • Oil Palm Plantation Financing-i • Cashline Facility-i • CashVantage Financing-i • Alliance Hire Purchase-i • Bai’ Bithaman Ajil Home Financing-i • Alliance Home Financing-i Business Financing • Revolving Credit Facility-i • Cashline Facility-i • Business Premise Financing-i • Industrial Hire Purchase-i • Term Financing-i • Project Financing-i •Leasing-i • Schemes promoted by CGC/BNM/SME Corp/Government • SME A-Flex Premium-i • SME A-Flex (Plus & Premium-i) • Floating Rate Term Financing-i Trade Financing and Services • Bank Guarantee-i • Shipping Guarantee-i • Letter of Credit-i • Murabahah Trust Receipt-i • Murabahah Working Capital Financing-i • Accepted Bills-i • Export Credit Refinancing-i (Pre-shipment/Post-shipment) • Inward Bills for Collection/Negotiation • Export LC (Advising/Confirmation/Transferring) • Export Bills for Collection • Export Bills Purchased/Discounting • Export Bills Negotiated Cards • Alliance Hybrid Standard Debit Card-i • Alliance Hybrid AP Platinum Debit Card-i • Alliance Hybrid PB Platinum Debit Card-i • Alliance My eSaving Debit Card-i • Alliance Junior Debit Card-i Unit Trust • Islamic Money Market Funds • Islamic Bond Funds • Islamic Balanced Funds • Islamic Equity Funds Financial Markets •IPRS-Murabahah-i • Money Market Deposit-i • Negotiable Islamic Deposits Certificate
- 09 2017 ANNUAL REPORT ALLIANCE INVESTMENT BANK BERHAD Corporate Finance • Initial Public Offerings −Involving public issues of new securities and/or offers for sale of existing securities in companies seeking listing and quotation on the Main Market and the ACE Market of Bursa Malaysia Securities Berhad • Secondary Offerings −Involving raising of funds subsequent to the initial public offerings through rights issues, restricted issues, private placements and special issues of both equity and equity-linked instruments • Corporate Restructuring Advisory • Merger, Takeover and Acquisition Advisory • Independent Advice to Minority Shareholders for related party transactions, General Offers and General Offer Exemption • Other General Corporate Advisory such as bonus issue, share split and employee share option scheme Debt Capital Markets • Fixed/Floating Rate Bonds • Commercial Papers Programmes • Medium Term Notes Programmes • Sukuk Programmes • Structured Financing • Asset Securitisation • Project Financing • Loan Syndication Equity Capital Markets • Underwritings and Private Placements of Initial Public Offerings • Underwritings of Rights Issues • Primary and Secondary Private Placements of Equity and Equity-Linked Instruments • Underwriting and Private Placements of Real Estate Investment Trusts (REITs) • Book-Building/Accelerated Book-Building of Equity and Equity-Linked Instruments Islamic Banking • Bal’Bithaman Ajil • Murabahah Working Capital Financing • Islamic Accepted Bills • Kafalah Bank Guarantee Stockbroking Products & Services • Institutional Share Trading • Retail Share Trading −Cash Trading Account −Collaterised Trading Account −Alliance Flexi 7 • Share Margin Financing • Online Share Trading Services −eAllianceShare −Mobile Share Trading •E-Services −Direct Credit −E-Dividend • Foreign Share Trading • Corporate Action Services ALLIANCEDBS RESEARCH SDN BHD • Equity Research • Economic Research • Industry Research • Corporate Research • Investment Advisory Services ALLIANCEGROUP NOMINEES (TEMPATAN) SDN BHD ALLIANCEGROUP NOMINEES (ASING) SDN BHD • Nominee Services
- 10 ALLIANCE FINANCIAL GROUP BERHAD (6627-X) FINANCIAL HIGHLIGHTS FINANCIAL YEAR ENDED 31 MARCH 2017 2016 2015 2014 2013 OPERATING RESULTS (RM MILLION) Net income Profit before taxation Net profit after taxation 1,469 681 512 1,424 695 522 1,383 703 531 1,349 749 564 1,333 714 538 54,089 39,336 48,975 45,228 1,548 5,114 26,494 55,627 38,748 50,785 46,025 1,548 4,842 21,832 53,142 36,923 48,646 44,607 1,548 4,495 22,746 48,075 32,199 43,909 39,237 1,548 4,166 24,146 43,692 28,225 39,657 36,004 1,548 4,030 19,079 33.5 33.5 16.0 3.30 4.08 6,316 34.2 34.2 14.5 3.13 4.15 6,425 34.8 34.8 15.4 2.90 4.79 7,415 37.2 37.1 29.51 2.69 4.41 6,827 35.3 35.3 16.6 2.60 4.40 6,811 3.92 48.4 12.2 1.2 3.49 43.0 12.1 1.3 3.22 45.0 13.8 1.6 6.691 79.51 11.9 1.6 3.77 46.9 12.5 1.7 2.2 10.5 0.9 1.5 47.1 2.1 11.2 1.0 1.5 48.4 2.2 12.3 1.0 1.6 46.8 2.2 13.8 1.2 1.9 46.6 2.4 13.8 1.3 2.0 47.9 136.72 1.0 0.6 109.12 1.3 0.8 102.7 1.0 0.6 92.7 1.4 0.7 82.5 2.1 1.1 34.2 87.0 83.8 32.1 84.2 80.1 33.6 82.8 81.6 34.0 82.1 - 33.6 78.4 - 12.55 12.55 17.18 11.78 11.78 17.36 11.11 11.11 12.97 10.38 11.43 13.67 10.62 11.91 14.63 KEY BALANCE SHEET DATA (RM MILLION) Total assets Gross loans, advances and financing Total liabilities Deposits from customers Paid-up capital Shareholders’ equity Commitments and contingencies SHARE INFORMATION AND VALUATIONS Share Information Earnings per share (sen) Diluted earnings per share (sen) Dividend per share (sen) Net assets per share (RM) Share price as at 31 March (RM) Market capitalisation (RM million) Share Valuations Dividend yield (%) Dividend payout ratio (%) Price to earnings multiple (times) Price to book multiple (times) FINANCIAL RATIOS (%) Profitability Ratios Net interest margin on average interest-earning assets Net return on average equity Net return on average assets Net return on average risk-weighted assets Cost to income ratio Asset Quality Ratios Loan loss coverage Gross impaired loans ratio Net impaired loans ratio Liquidity Ratios CASA ratio Loan to Deposit ratio Loan to Funds ratio Capital Adequacy Ratios Common Equity Tier I (“CET I”) capital ratio Tier I capital ratio Total capital ratio 1 2 Including special dividend of 10.5 sen; should special dividend is excluded, the dividend yield and dividend payout ratio are 4.31% and 51.3% respectively. Including Regulatory Reserve provision.
- 11 2017 ANNUAL REPORT STEADY BAL ANCE SHEET GROWTH Total Assets 2017 29 .5 2016 16.6 53,142 48,075 43,692 512 2017 2013 Net Return on Average Equity 2014 2015 2013 Gross Loans, Advances and Financing (%) 2014 16.0 2016 54,089 2015 (sen) 55,627 2014 522 531 538 2013 Dividend Per Share (RM mi lli on) 564 ( R M m i l l i o n) 14.5 Profit After Taxation ENHANCED SHAREHOLDERS VALUE 15.4 IMPROVED EARNINGS 2015 2016 2017 Market Capitalisation (RM mi lli on) 6,811 6,827 7,145 2014 2015 3 . 30 2014 3 . 13 2013 2 . 90 45, 228 2017 2017 (RM) 2 .6 9 4 6, 0 25 2016 2016 Net Assets Per Share 2 . 60 4 4, 6 07 36, 004 2015 6,316 39,336 2013 6,425 38,748 2017 2015 2016 2017 3 3 .5 3 4. 8 3 5 .3 3 4. 2 2016 2016 (RM mi lli on) 37 . 2 2015 2015 Deposits from Customers (se n) 2014 2014 36,923 2013 Earnings Per Share 2013 32,199 2017 3 9 ,2 3 7 2016 28,225 2015 10.5 2014 11.2 13.8 2013 12.3 13.8 (RM mi lli on) 2017 2013 2014
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- 14 ALLIANCE FINANCIAL GROUP BERHAD (6627-X) DIRECTORS 2 1 3 5 4 6 1. DATUK OH CHONG PENG 2. KUNG BENG HONG 3. LEE AH BOON
- 2017 ANNUAL REPORT 4 . OU SHIAN WAEI 5. TAN CHIAN KHONG 6. JOEL KORNREICH 15
- 16 ALLIANCE FINANCIAL GROUP BERHAD (6627-X) DIRECTORS (C ont’d) DIRECTORS OF ALLIANCE FINANCIAL GROUP BERHAD ALLIANCE FINANCIAL GROUP BERHAD (AFG) Datuk Oh Chong Peng Chairman, Independent Non-Executive Director Lee Ah Boon Non-Independent Non-Executive Director Kung Beng Hong Non-Independent Non-Executive Director Tan Chian Khong Independent Non-Executive Director Ou Shian Waei Independent Non-Executive Director DIRECTORS OF MAJOR SUBSIDIARIES A L L I A N C E B A N K M A L AY S I A B E R H A D ( A B M B ) ALLIANCE INVESTMENT BANK BERHAD (AIBB) Tan Sri Dato’ Ahmad bin Mohd Don Chairman/Independent Non-Executive Director Kung Beng Hong Chairman/Non-Independent Non-Executive Director Lee Ah Boon Non-Independent Non-Executive Director Kuah Hun Liang Independent Non-Executive Director Kung Beng Hong Non-Independent Non-Executive Director Dato’ Majid bin Mohamad Independent Non-Executive Director Ou Shian Waei Independent Non-Executive Director Mazidah binti Abdul Malik Independent Non-Executive Director Kuah Hun Liang Independent Non-Executive Director Dato’ Yeoh Beow Tit Independent Non-Executive Director Datuk Wan Azhar bin Wan Ahmad Independent Non-Executive Director Lee Boon Huat Independent Non-Executive Director Ho Hon Cheong Non-Independent Non-Executive Director Thayaparan Sangarapillai Independent Non-Executive Director ALLIANCE ISL AMIC BANK BERHAD (AIS) Datuk Wan Azhar bin Wan Ahmad Chairman/Independent Non-Executive Director Tuan Haji Md Ali bin Md Sarif Independent Non-Executive Director Dato’ Majid bin Mohamad Independent Non-Executive Director Tuan Haji Ibrahim bin Hassan Independent Non-Executive Director Shaharuddin bin Zainuddin Independent Non-Executive Director
- 17 2017 ANNUAL REPORT D AT U K O H C H O N G P E N G (Chairman, Independent Non-Executive Director) Member of the Nomination Committee, Remuneration Committee and Employees’ Share Participating Scheme Committee A Malaysian, male, aged 72, was appointed Chairman of the AFG Board on 21 April 2006. Datuk Oh had his accountancy training in London from 1964 and qualified as a Chartered Accountant in 1969. He is a Fellow of the Institute of Chartered Accountants in England and Wales as well as a member of the Malaysian Institute of Certified Public Accountants (MICPA) and Malaysian Institute of Accountants. He joined Coopers & Lybrand (now called PricewaterhouseCoopers) in London in 1969 and in Kuala Lumpur in 1971. He was a Partner of Coopers & Lybrand Malaysia from 1974 and retired as a Senior Partner in 1997. He was with the Rashid Hussain Berhad Group of Companies between 1998 and 2003. Datuk Oh is a Government-appointed member of the Labuan Financial Services Authority. He is also a Council Member of UTAR and a trustee of the UTAR Education Foundation. His past appointments include stints as a Government-appointed Member of the Kuala Lumpur Stock Exchange, now called Bursa Malaysia Berhad (1990-1996), a member of the Malaysian Accounting Standards Board (2004-2009) as well as a Council Member of MICPA (1981-2001) and as its President (1994-1996). Datuk Oh currently sits on the Boards of British American Tobacco (Malaysia) Berhad, WCE Holdings Berhad (formerly known as Kumpulan Europlus Berhad), Malayan Flour Mills Berhad, Dialog Group Berhad, Saujana Resort (M) Berhad and several other companies.
- 18 ALLIANCE FINANCIAL GROUP BERHAD (6627-X) DIRECTORS (Cont’d) KUNG BENG HONG O U S H I A N WA E I (Non-Independent Non-Executive Director) Member of the Audit Committee, Nomination Committee, Remuneration Committee and Employees’ Share Participating Scheme Committee (Independent Non-Executive Director) Chairman of the Nomination Committee, Remuneration Committee and Employees’ Share Participating Scheme Committee, as well as Member of the Audit Committee A Malaysian, male, aged 72, was appointed to the AFG Board on 21 April 2006. A Malaysian, male, aged 66, was appointed to the AFG Board on 1 July 2010. Mr Kung holds a Bachelor of Arts (Hons) degree in Analytical Economics from the University of Malaya. He is a Fellow of the Institute of Bankers Malaysia (now known as The Asian Institute of Chartered Bankers). Mr Ou holds a Bachelor of Science degree in Chemistry from the University of Malaya. He has 49 years’ working experience in the banking industry and has held numerous senior management positions, mainly in Malaysia, including CEO positions in three banks and directorships in five banks. He has also held various positions at Citibank N.A. in the United States and Singapore. Mr Kung is currently an Advisor to Fullerton Financial Holdings (International) Pte Ltd. He is also the Chairman of AIBB, and serves on the Board of ABMB. He holds directorships in other companies and serves on the Boards of Asian Institute of Finance Berhad, UOA Asset Management Sdn Bhd and Quill Motorcars Sdn Bhd. He began his career with a local bank as a management trainee from 1976 to 1980. He then joined IBM Malaysia in 1981 as a trainee System Engineer and held various technical and management positions before retiring as Managing Director of IBM Malaysia in January 2010 after almost 30 years of service. Mr Ou was the PIKOM (Association of Malaysia Computer Industry) Councillor from 1997 to 1998 and was awarded the ‘Key Industry Leader Award’ in 2006 by PIKOM (now known as The National ICT Association of Malaysia) for his contributions to Malaysia’s IT industry. He was also the Chairman of the National International Technology Council (NITC) Taskforce for IT literacy in 1997 and Adjunct Professor for the Department of Economics & Business Administration at Universiti Putra Malaysia from 1998 to 1999. He is also a Director of ABMB. He serves as the Chairman of AIG Malaysia Insurance Berhad and is the Public Interest Director of Private Pension Administrator Malaysia.