Friday July 30, 2010

Alliance Bank aims for higher return on equity

By EDY SARIF
edy@thestar.com.my

New CEO says 16% target is achievable

KUALA LUMPUR: Alliance Bank Malaysia Bhd expects to achieve its target of 16% return on equity (ROE) in 12 to 18 months, in line with the ROE industry average of 14% to 16%, said group chief executive officer and director Sng Seow Wah.

“We are now achieving 11% ROE and the 16% that we are aiming for is achievable,” he said yesterday after the group AGM.

Sng said that for this financial year ending March 31, 2011, the group planned to grow its banking division to a much higher level.

Sng Seow Wah

“Our focus will be the consumer and commercial banking and also the small and medium enterprise (SME) banking. Apart from that, we are also looking at some other areas that can bring income to the group,” he said.

Sng, who took office just recently, said there would be not much change on the business strategies and plans for the group.

“We have a very good team of people here and good business momentum and the current strategies and plans for the group will continue as usual,” he said.

Sng said that as it was still early day for him to decide the next strategies and plans, he would be observing the next 90 days to assess the group’s current strengths and weaknesses.

On the business outlook for this financial year, the group expects an economic recovery and rising gross domestic product in 2011.

At the group level, it will approach the financial year with a renewed but cautious optimism.

Alliance Financial Group Bhd chairman Datuk Oh Chong Peng said the group would continue to rely on its core businesses of consumer and SME banking by being single-minded and agile in strengthening its competitive position.

“We will strive for this by providing better product capabilities and delivering customer experience to sustain shareholder value,” he said.

For the financial year ended March 31, the group posted a net profit of RM300mil on the back of RM1.065bil of revenue.