Business

Published: Tuesday November 20, 2012 MYT 6:50:00 PM

Malaysia's Alliance Financial Group Q2 earnings up 14.2% to RM141.9m


KUALA LUMPUR: Alliance Financial Group Bhd (AFG) earnings rose 14.2% to RM141.94mil in the second quarter ended Sept 30, 2012 from RM124.21mil a year ago, underpinned by growth in interest income and recurring non-interest income.

It said on Tuesday revenue increased by 8.2% to RM338.97mil from RM313.17mil. Earnings per share were 9.30 sen compared with 8.10 sen.

The group reported the Q2 earnings were an increase of 13.9% over the first quarter.

In the first half ended Sept 30, 2012, its earnings increased by 4.8% to RM266.48mil from RM253.98mil in the previous corresponding period. Its revenue increased by 6.1% to RM658.32mil from RM620.23mil.

Alliance Bank Malaysia Bhd group chief executive officer Sng Seow Wah said the H1 earnings translated into a return on equity of 13.7% and earnings per share of 17.5 sen.

"The improved performance compared to the corresponding first half of FY2012 was attributed to the growth in interest income as well as recurring non-interest income," he said.

Sng said in the 1H, net interest income rose by 4.5% to RM489mil, despite interest margins remaining under pressure and the increased competition in the industry.

"The group's non-interest income ratio has improved further to 27.2% from 25.6% a year ago. Non-interest income had registered a stronger growth of RM17.0mil or 11.2% to RM169.3mil, driven mainly from the group's continued focus on expanding its treasury sales, transaction banking and wealth management services," he said.

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