Higher income lifts Alliance Financial Group’s Q1 results

PETALING JAYA: Alliance Financial Group Bhd (AFG) saw its net profit in the first quarter ended June 30, 2016 (Q1FY17) climb 8.64% to RM132.47 million, from RM121.93 million a year ago, driven mainly by client-based fee and Islamic banking income.
Revenue increased by 2.41% to RM474.94 million, from RM463.76 million in the previous corresponding quarter, primarily from higher net interest income and other operating income.
In a statement released yesterday, group CEO Joel Kornreich said the positive financial results stem from growing its best performing segments and optimising its deposit mix.
Small and medium enterprise loans grew 16% and net interest margins improved to 2.22%.
The loan-to-deposit-ratio is 85.7%, loan-to-fund ratio 82.5% and CASA (current account savings account) ratio 32.9%.
Kornreich said the group’s total capital ratio remains near the top of the industry at 16.3% versus 13% a year ago.
For Q1FY17, AFG’s return on equity was 11%, while net assets per share improved to RM3.16, from RM2.92 in the previous year.
AFG’s net interest margin grew by 6 basis points year-on-year, driven by higher risk-adjusted returns loans and better pricing discipline, despite the rising cost of funds.