Analyst Briefing FY2020 - 26 June 2020 - Alliance Bank
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Analyst Briefing
FY2020
26 June 2020
Key Results
Contents
1 COVID-19 Supports & Early Impact
2 FY20 Financial Performance
Revenue & Franchise Development
Effective Risk Management
Key Results
3 Going Forward
Our Strategy
FY20 Achievements
FY21 Priorities & Sustainability
4 Appendix
4QFY20 & FY20 Financial Result
1
Executive Summary
Keeping Our Stakeholders and the Bank Safe During COVID-19
Keeping Our Stakeholders Safe Keeping the Bank Safe
• Frequent COVID-19 task force meetings to closely monitor and discuss mitigation actions
• Successfully implemented business continuity plan
Helping our staff to stay safe and protected at the Ensuring the Bank continues to
workplace have ample liquidity
Split operations and work rotation (work-from-home:
≥65% during Movement Control Order)
Employees
Strong funding position with
Enhanced hygiene measures within working Liquidity Coverage Ratio >150%
Liquidity Management
environment & encourage virtual meetings & trainings and Loan-to-funds ratio at 84%
Frequent communication on maintaining physical and
mental health & also on new SOPs at the workplace.
Sufficient cash float buffers at
Expanded family medical benefit to include medical
branches
claims for treatment of confirmed COVID-19
Helping the underserved in our communities during Sufficient liquidity access in
this difficult time
Community
place (in addition to liquidity
Contributed >RM650k to COVID-19 pandemic-related buffer) to mitigate any payment
assistance funds shock
Raised RM300k via SocioBiz to help medical frontliners
and supporting the sustainability of 11 social enterprises
2
Executive Summary
Keeping Our Stakeholders and the Bank Safe During COVID-19
Keeping Our Stakeholders Safe Keeping the Bank Safe
Helping our clients stay financially healthy during and Enhancing our credit controls
post-pandemic Conducted portfolio review to assess sectorial
exposure to COVID-19
Encourage affluent customers to opt out,
offer R&R or top-up if required Red sector - Significantly impacted by
6-month
COVID-19 (e.g. Tourism, Restaurants & Hotels,
automatic High opt out ratio: 18%; helped to
Non-essential retail trade):
moratorium RM23.5 reduce Day-One Modification Loss
for billion For opt-in customers, interest will not RM620 for SRF Sectors
Facility million Helped >900 SMEs (6.2% of total SRF Red
(“SRF”) allocation)
Amber
Green
Corporate & Proactively engage with corporate &
Commercial RM1.6 • Rolled-out three-pronged strategy:
commercial customer
moratorium billion 1) Stratify customer segmentation and prioritise
20% of loan book
/ R&R customers calls/visits
2) Diagnostic tools for indicating
high/medium/low risks
Help local businesses reach out to
>46,000 customers online 3) Customized action plans for
#Support
link Watch/Maintain/Grow
Lokal Provides training in business
clicks
management and digital marketing • Post-diagnostic: Reduce exposure to Red
sectors and Grow Green Sectors
3
Overview of Consumer Banking Portfolio Stratification Strategy
Managing asset quality while growing affluent markets
1 Stratify 2 3
Customer Diagnostic tools Action Plans
Segmentation
Study customer risk Assess COVID-19 Post-diagnostic: Grow affluent customers while
level impact to customers’ keeping a close watch on high risk customers
financial
(1) Understand Reduce exposure
(R) Red customer financial Intensify collection efforts
health through calling
Manage GIL
Watch Repayment inventive programme
Appropriate restructuring & rescheduling
(R&R)
(A) Amber (2) Perform Bureau
Scrub to understand Manage unutilised lines
customer current status
Maintain – ease customer’s cash flow
Systematically offer R&R
(G) Green Maintain
(3) Understand Continue to monitor customer repayment
customer needs on behaviour
R&R offer
Grow – grant additional line
Top-up campaign
Grow
Cross sell campaign, i.e. fee income /
On-going
deposit / credit card
4
Overview of SME Banking Portfolio Stratification Strategy
Identify risk and opportunity from the current borrowing portfolio
Step 1: Step 2: Step 3
Prioritization Diagnostic Action Plan
a) Stratify Customer Diagnostic Tool
Action Plan
Segmentation
Credit score A set of guided Reduce exposure
Sales turnover questions to determine:
Negotiate for additional security OR
Company Type Watch
Reduce exposure of existing loans
o Business
vulnerability Manage unutilised line
b) Prioritise calls/visits
based on Customer Maintain / Conditional grow strategy – ease
Profile o Business viability customer’s cash flow
First priority: Status quo – maintain position OR
Red / Amber Sector in all The diagnostic tool will
risk level Proactive restructure / reschedule (R&R) e.g
indicate Watch, Help/ extend existing loan tenure to ease cash flow +
Clean Exposure Help/Maintain, and Maintain selective line increase where appropriate OR
Line Utilization >40% Grow
Grant additional facility with BNM Assistance
Second priority: fund (Special Relief Facilities, All Economic
Red / Amber Sector in all Sectors Facilities, Working Capital Guaranteed
risk level Fully rolled out since Scheme)
Green Sector with High 15 June 2020
Risk Grow strategy – grant additional line for viable
Clean Exposure business
Line Utilization ≤40% Grow Grant additional facility with BNM Assistance
Last priority focus:
fund (Special Relief Facilities, All Economic
Sectors Facilities, Working Capital Guaranteed
Red / Amber / Green Scheme)
Sector in all risk level
5 Secured positionOverview of Corporate & Commercial Banking Portfolio Stratification Strategy
Identify risk and opportunity from the current borrowing portfolio
Step 1: Step 2: Step 3
Prioritisation Diagnostic Action Plan
a) Stratify Customer Diagnostic Tool Action Plan
Segmentation
Reduce exposure
A set of guided
Credit risk profile (S&P questions to determine: Negotiate for additional security
rating) Reduce exposure of existing loans
High
Watchlist o Business Risk Restructure & reschedule (R&R) options, e.g
vulnerability convert existing loans to Term Loan with
b) Prioritise calls/visits longer tenure
based on Customer o Business viability Manage unutilised line
Profile
Risk level The diagnostic tool will Maintain/Conditional grow strategy – ease
indicate High, Medium, customer’s cash flow
Low Risk impact
Status quo – maintain position OR
Medium
Proactive R&R to help manage cash flow
Sector
Risk
Ongoing Grant additional facility via SJPP/Danajamin
Guarantee Schemes
Obtain additional security/improve terms
Key Priorities:
Priority #1 Priority #2 Priority #3
Grow strategy – grant additional line for viable
Borrowers are segmented into business
Sectors: Red, Amber , Green
Low
Risk level: High, Medium, Low Grant additional facility with SJPP/Danajamin
Risk
Guarantee Schemes
6 Obtain additional security/improve termsExecutive Summary
Early COVID-19 impact
4QFY20 results was partly affected by early COVID-19 impact
Business growth slowed down Underlying Net Profit After Tax
Gross loans – RM bil RM mil Early COVID-19 impact ECL model review
+0.3% +7.0%
q-o-q +16.0%
q-o-q
+1.8% growth Share +50.5% q-o-q
43.7 margin q-o-q 143.4
43.5 134.0
43.2 financing: 8.2
115.5
42.7 -22.2% 37.1
76.7
Commercial
banking:
98.1
-2.4%
1QFY20 2QFY20 3QFY20 4QFY20 1QFY20 2QFY20 3QFY20 4QFY20
While funding improved 4QFY20 NPAT would have been higher by RM45.3 million to
RM143.4 million if it had not been affected by:
Customer based funding (RM bil)
Early COVID-19 impact of RM37.1 million:
+3.8%
q-o-q FD: Non-interest income: trading loss of RM10.7 million
48.9 +RM0.6 bil Net credit cost: +RM26.4 million from weaker
+1.1% growth macroeconomic variables (MEV) due to COVID-19 &
Saveplus: Personal Financing delinquency from customer
47.1
46.6 46.6 +RM0.5 bil
anticipation of moratorium
Treasury ECL model review: RM8.2 million
deposits:
+RM0.4 bil
7 1QFY20 2QFY20 3QFY20 4QFY20Executive Summary
Key Results
FY20 Performance Highlights
Revenue grew 4.1% y-o-y to RM1.69 billion
1 Net interest income was flat y-o-y despite OPR cut impact
Revenue &
Net interest margin at 2.40%, within original guidance
Franchise
Gross loans growth slowed down to 2.2% y-o-y
Development
Non-interest income grew 25.2% y-o-y
Cost to Income Ratio at 47.8%, within guidance
2 Customer based funding grew 6.5% y-o-y
Effective Risk Liquidity coverage ratio at 156.7%
Management FY20 net credit cost at 72.1 bps (including early Covid-19 impact of 8.0 bps)
Impaired loans inflow continue to reduce q-o-q (4QFY20: +RM61 million vs 3QFY20: +RM91 million)
3 FY20 Pre-Provision Operating Profit (PPOP) grew 4.1% y-o-y to RM882.3 million
FY20 NPAT at RM424.3 million with ROE of 7.3%
Key Results Prioritising capital conservation in order to support future business expansion:
No second interim dividend (will consider future dividend proposals once the full economic impact
of the COVID-19 pandemic is clearer)
Total FY20 dividend: 6.0 sen (dividend payout of 22%)
4 Alliance ONE Account: +54% y-o-y to cross RM 5.0 billion mark
Transformation Personal Financing: +10% y-o-y to RM2.2 billion
Progress SME Expansion: +8% y-o-y to RM9.4 billion mark (industry: -10.4% y-o-y#)
Alliance@Work: Acquired >1,740 company payroll accounts & >29,000 employee CASA
* BNM Monthly Statistical Bulletin March 2020
8 # BNM Financial Institution Network March 2020 statisticsRevenue &
Franchise Development
Revenue grew 4.1% y-o-y to RM1.69 billion
a) Revenue grew 4.1% y-o-y to RM1.69 bil: Revenue
Non-interest income: +25.2% or RM73.7 mil y-o-y RM mil Net interest income
Client-based fee income
Client-based fee income: +4.5% or RM13.9 mil y-o-y Non-client based fee income
Non-interest income
Non-client based fee income: +RM59.8 mil y-o-y
+4.1%
Net interest income was flat y-o-y y-o-y
Excluding OPR cut impact & delinquency pricing 1,689.3
revision, normalised net interest income grew +4.0% 1,622.1
(13.6) 46.2
y-o-y
305.7 319.6
b) Q-o-q revenue grew by 2.8% or RM12.0 mil:
Net interest income: +3.3% or +RM10.9 mil
Non-interest income: +1.1% or +RM1.1 mil
+2.8%
Client-based fee income: -6.8% or -RM5.7 mil q-o-q 1,330.0 1,323.5
Non-client based fee income: +RM6.8 mil 422.5 434.4
9.3 16.1
83.7 77.9
329.5 340.4
3QFY20 4QFY20 FY19 FY20
9Revenue &
Franchise Development
Net interest income was flat y-o-y
a) Net interest income was flat y-o-y: Net Interest Income
Excluding OPR cut impact & delinquency pricing RM mil
revision, net interest income grew +4.0% y-o-y
RM mil +23.5 -21.9 -19.1 Flat
+70.8 -12.0 -47.6 1,323.5
1,330.0 y-o-y
1,330.0 1,323.5
FY19 Growth Mix Rate Interest- Delinquency OPR cut FY20
in-suspense pricing
revision
YoY
+5.5% +1.8% -1.7% -1.5% -0.9% -3.7% +3.3%
Impact
q-o-q
Continue to benefit from Impact Continued to
growth & mix with diminishing drag with OPR 329.5 340.4
transformation initiatives in FY21 cuts
While managing cost of fund
b) Net interest income grew by 3.3% q-o-q contributed by:
Loans growth of 0.3% q-o-q and treasury assets 3QFY20 4QFY20 FY19 FY20
growth of 5.1% q-o-q
RM mil
+14.2 +2.6 nil -9.4 340.4
329.5 +4.2 -0.7
3QFY20 Growth Mix Rate Interest- Delinquency OPR cut 4QFY20
in-suspense pricing revision
QoQ
10 impact
+1.3% -0.2% +4.3% +0.8% Nil -2.8%Revenue &
Franchise Development
NIM at 2.40%, within original guidance
a) NIM: 2.40%, within original guidance, helped by lower Interest Margin Trend
COF in 4QFY20 mainly from Saveplus repricing Gross Interest Margin Cost of Funds Net Interest Margin
+4bps nil -4bps -2bps
2.50% -9bps 2.40%
5.15% 5.02% GIM
4.89%
FY19 Mix Rate Interest-
in-suspense
Delinquency
pricing
OPR cut FY20
2.69%
2.89% 2.85% COF
revision
2.40% 2.50% 2.40% NIM
FY18 FY19 FY20
11Revenue &
Franchise Development
Continue to focus on SME, AOA and personal financing
a) 4QFY20: Slower loans growth at 0.3% q-o-q impacted by Gross Loans QoQ Growth
COVID-19:
(RM’bil) Dec-19 Mar-20 ∆ QoQ ∆ QoQ%
Share margin financing: -RM223 mil/ -22.2% Consumer Banking 23.4 23.3 -0.1 -0.9%
Commercial banking: -RM124 mil/ -2.4% - AOA (Post-Jun18) 2.7 2.9 0.2 5.8%
- AOA (Pre-Jun18) 2.1 2.1 -0.03 -1.3%
SME banking, AOA and personal financing grew: - Classic Mortgage 14.7 14.5 -0.2 -1.6%
+RM300 mil/ +2.1% - Personal Financing 2.1 2.2 0.04 1.8%
- Credit Card 0.6 0.6 -0.05 -7.6%
b) FY20 gross loans slowed down to 2.2% y-o-y - Share Margin 1.0 0.8 -0.2 -22.2%
SME Banking: +RM0.7 bil/ +7.6% (industry^: -10.4%) - Hire Purchase 0.2 0.2 -0.02 -11.9%
SME Banking 9.3 9.4 0.1 1.1%
(SME CGC loans: +RM0.4 bil) Commercial Banking 5.2 5.1 -0.1 -2.4%
Consumer Banking: RM0.7 bil/ +2.8% Corporate Banking 5.6 5.9 0.3 6.3%
Total Gross Loans 43.5 43.7 0.2 0.3%
AOA: +RM1.7 bil/ +54.6%
Personal Financing: +RM0.2 bil/ +10.6% Gross Loans YoY Growth
RM bil Consumer Banking SME Banking Corporate & Commercial Banking
+2.2%
42.7 y-o-y 43.7
11.4 11.0
-3.3%
8.7 9.4
+7.6%
22.6 23.2
+2.8%
12 *BNM Monthly Statistical Bulletin March 2020
FY19 FY20
^BNM Financial Institution Network March 2020 statisticsRevenue &
Franchise Development
Non-interest income grew 25.2% y-o-y
a) Non-interest income grew 25.2% or +RM73.7 mil y-o-y: Non-interest income
RM mil Client Based Fee Income: +4.5%
+28.5 +24.4 +0.4 -2.6 -8.3 365.8 RM mil Client based fee income Non-client based fee income
292.1 +20.4 +10.9
+25.2%
FY19 Treasury & Socio- Lower SI Wealth Banking Brokerage FX sales & FY20 y-o-y
investment economic interest management services fees Trade
income revaluation gain expense fees fees
& disposal gain 365.8 Non-
Client:
Higher treasury income & gain: +RM20.4 mil 292.1 46.2 >100%
Higher revaluation gain from social economic investments: y-o-y
+1.1%
+RM5.8 mil; gain on disposal of branch property: +RM5.1m q-o-q
Client:
Higher wealth management & banking services: +RM24.8 mil 305.7 319.6 +4.5%
93.0 94.0 y-o-y
Partly offset by lower brokerage, FX sales & trade fee of 9.3 16.1
RM10.9 mil, impacted by challenging external environment 83.7 77.9
b) FY20 non-interest income ratio improved to 21.7% (FY19: 18.0%) (13.6)
3QFY20 4QFY20 FY19 FY20
c) Q-o-q non-interest income grew 1.1% or RM1.0 mil due to higher
non-client based fee income of RM6.8 mil offset by lower client
based fee income of RM5.7 mil
RM mil
Client Based Fee Income: -6.8%
93.0 +2.5 +5.1 -0.8 +5.4 -9.0 94.0
+1.2 -3.4
3QFY20 Treasury & Gain on Lower SI Wealth Banking Brokerage FX sales & 3QFY20
investment disposal interest Management services fees Trade fees
income of branch expense fees
property
13Revenue &
Franchise Development
FY20 Cost to Income Ratio at 47.8%, within guidance
a) FY20 cost to income ratio at 47.8%, within guidance Operating Expenses
b) FY20 operating expenses: +RM32.1 mil or 4.1% y-o-y: RM mil OPEX CIR
Prioritised recruitment in collection & SME expansion
(+RM4.8 mil)
47.8% 47.8%
Investment in IT infrastructure (+RM8.4 mil) to future
proof the Bank and enhance business continuity 807.0
774.9
FY19 FY20
14Effective Risk Management
Customer based funding grew 6.5% y-o-y
a) Customer based funding grew 6.5% y-o-y Customer Based Funding
b) CASA grew RM2.1 bil or 13.6% y-o-y mainly from: RM bil CASA
Structured Investments
Retail Negotiable Instrument of Deposits (NID)
Alliance SavePlus: +RM1.7 bil y-o-y Money Market Deposits (MMD)
Fixed Deposits (FD)
Alliance@Work payroll/ CASA: +RM321 mil y-o-y Savings Deposits
Demand Deposits
c) CASA ratio increased to 37.4%
d) Funding growth was utilised mainly to fund SME, AOA and
Personal Financing +6.5%
y-o-y
e) Continue to strengthen funding through deposit campaigns 48.9
to ensure sufficient liquidity 45.9
1.3 0.9
0.1 3.1
2.9
25.6 26.9
1.8 1.7
14.5 15.7
Mar-19 Mar-20
15 Note: Customer based funding = CASA + Fixed Deposits (FD)+ Money Market Deposits
(MMD) + Retail Negotiable Instrument of Deposits (NID) + Structured InvestmentsEffective Risk Management
FY20 Liquidity Coverage Ratio at 156.7%
a) Healthy liquidity position: Liquidity: LCR, LFR
Liquidity coverage ratio (LCR) at 156.7% Loan to Fund Ratio (LFR)
%
(industry*: 141.4%) Liquidity Coverage Ratio (LCR)
Loan to fund ratio at 83.6%
(industry*: 83.2%)
154.3% 171.3% 161.5% 162.5% 156.7%
Proforma Net stable funding ratio (NSFR) remained
above 100%
b) Relaxation of regulatory requirement by BNM until 30
September 2021
Operate below minimum LCR of 100%
86.6% 85.9% 87.0% 86.6%
Maintain NSFR at minimum 80% upon 83.6%
implementation from 1 July 2020
4QFY19 1QFY20 2QFY20 3QFY20 4QFY20
16 * BNM Monthly Statistical Bulletin March 2020Effective Risk Management
FY20 net credit cost* at 72.1 bps
a) FY20 net credit cost* at 72.1 bps Net Credit Cost* (bps)
bps
+2.5 +8.0 72.1 bps Early Covid19 impact One large account Debt-sale
+5.0 +2.5 +0.7 64.1
49.5 +3.9
72.1
13.8
9MFY20 Business Personal Mortgage Other ECL model 12MFY20 Early Reported
Banking Financing (Including consumer review Covid19 12MFY20 8.0
(incl SME/ AOA) banking impact
Commercial)
33.2
1.7
Early Covid-19 impact: +8.0 bps 22.7
50.3
Additional provision in ECL model due to weaker 7.7
8.0
31.5
macroeconomic variables (MEV): +5.2 bps 7.7
14.7
Higher Personal Financing delinquency on 3QFY20 4QFY20 FY19 FY20
consumer anticipation of moratorium: +2.8 bps
Excluding the above, FY20 net credit cost at 64.1 bps
b) Missed guidance of 55 bps – 60 bps due to:
+2.5 bps: yearly ECL model review
+3.0 bps: planned debt sale did not materialised
17
* Net credit cost (including bond impairment)Effective Risk Management
Residential credit cost improved with lower GIL net inflow
a) Credit cost for both classic mortgage and AOA has Classic Mortgage GIL
improved q-o-q contributed by: R&R (RM mil) GIL ratio (%) 30+ dpd (%) Credit Cost (%)
Lower gross impaired loans (GIL) q-o-q due to 2.9% 3.0%
3.4%
2.1% 2.5%
intensified collection efforts
1.1% 1.5% 1.8% 1.9%
1.0%
-0.02% 0.13% 0.24% 0.11% 0.04%
262 267
219
76 79
153 167 29
6 13
190 186 188
146 154
Mar-19 Jun-19 Sep-19 Dec-19 Mar-20
Δ GIL: +14 +52 +43 +5
Δ R&R: +7 +16 +47 +3
Alliance ONE Account GIL
6.5%
5.5% 5.3%
4.0%
2.7% 5.3%
4.8%
3.7%
1.6% 2.0%
0.94% 1.44% 1.40%
0.67% 0.76%
229 268
157 139
77 121
53 47
12 20 111 108 129
40 57
Mar-19 Jun-19 Sep-19 Dec-19 Mar-20
Δ GIL: +24 +80 +72 +39
18 Δ R&R: +8 +27 +74 +18Effective Risk Management
Post-Jun18 AOA asset quality performing better
a) Lower GIL & delinquency ratios for Post-Jun18 AOA (vs AOA: Pre-Jun18
Pre-Jun18 AOA), thanks to credit tightening:
GIL (RM mil) Total GIL ratio (%) 30+ dpd (%) Credit Cost (%)
# Date Origination
1 Jun18 Revised OD amortization policy
11.4%
Revised Debt-Service-Ratio (DSR) computation for
9.2% 9.1%
refinancing
6.5%
10.2%
2 Apr19 Lower OD limit for new applications 9.3%
4.1% 6.6%
More differentiated risk-based pricing
2.3% 3.4%
3 Aug19 Implemented duo score strategy (internal + CTOS score) 2.23% 2.17%
0.40% 0.88% 0.96%
b) Delinquency increased q-o-q due to moratorium 68
133 184 201
51
anticipation
Mar-19 Jun-19 Sep-19 Dec-19 Mar-20
c) GIL inflow: Pre-Jun18 AOA reduced q-o-q due to Δ GIL: +17 +65 +51 +17
intensified collection efforts; Post-Jun18 AOA
maintained ~RM20 mil per quarter with a growing AOA: Post-Jun18
portfolio
d) Action plans to control delinquency and GIL:
3.6%
Further tightening of origination credit policy 1.2%
2.2% 2.6%
0.5%
Rolled-out three-pronged strategy: 1.7% 2.2%
0.5% 1.1%
0.1%
1) Stratify customer segmentation and prioritise
customers calls/visits
0.71% 0.82% 0.62%
0.36% 0.42%
2) Diagnostic tools for indicating high/medium/low 1 8 25 46 66
risks
Mar-19 Jun-19 Sep-19 Dec-19 Mar-20
3) Customized action plans for
19 Δ GIL: +7 +17 +21 +20
Watch/Maintain/GrowEffective Risk Management
SME & Personal Financing asset quality under control
a) SME: lower credit cost q-o-q; GIL ratio stable SME
b) SME delinquency increased q-o-q due to moratorium GIL (RM mil) Total GIL ratio (%) 30+ dpd (%) Credit Cost (%)
anticipation but improved post Mar-20
2.6%
2.1%
c) Action plans to manage delinquency and GIL: 2.0%
1.8% 1.8%
Focus on existing customer base in 1QFY21
1.7% 1.7% 1.6%
1.4%
Rolled-out three-pronged strategy: 1.4%
0.64%
1) Stratify customer segmentation and prioritise 0.28% 0.42%
0.07% 0.12%
customers calls/visits
148 149 128 134
2) Diagnostic tools for indicating high/medium/low risks 146
3) Customized action plans for Watch/Maintain/Grow
Mar-19 Jun-19 Sep-19 Dec-19 Mar-20
a) PF GIL remainedKey Results
PPOP grew 4.1% y-o-y; FY20 NPAT at RM424.3 million
a) FY20 Pre-Provision Operating Profit (PPOP) grew 4.1% Pre-Provision Operating Profit
y-o-y to RM882.3 million RM mil
+4.1%
b) FY20 PBT at RM567.9 million mainly impacted by: y-o-y
847.2 882.3
OPR cut & delinquency pricing revision of RM59.6
million
A large account impairment of RM59.6 million
Early Covid-19 impact of RM48.8 million
Higher net trading loss: RM14.1 million
Weaker future MEV: RM22.4million FY19 FY20
PF delinquency on consumer anticipation of Profitability & ROE
moratorium: RM12.3 million
PBT
ECL model review of RM10.8 million (RM ‘mil)
+87.8 -59.6
-32.1
708.0 +53.1 -70.1
687.1 -59.6
c) FY20 NPAT at RM424.3 million with ROE of 7.3% -59.6 567.9
FY19A Net Interest Non- OPR cut OPEX Net Credit Underlying One large Early Covid- Reported
Income Interest impact Cost FY20 account 19 impact & FY20
(excl OPR cut Income & & Impairment ECL model
& Delinquency review
Delinquency Re-pricing
re-pricing)
NPAT 537.6 514.9 424.3
21 ROE 9.9% 8.9% 7.4%Key Results
Prioritising capital conservation
a) Capital position remains strong: Capital Position
CET-1 ratio: 13.8% %
CET 1 Tier 1 Total Capital
Tier 1 ratio: 14.6%
18.5% 18.3% 18.9%
Total capital ratio: 18.9%
b) Prioritising capital conservation in order to support 14.1% 14.0% 14.6%
future business expansion :
No second interim dividend (will consider future
dividend proposals once the full economic impact
13.4% 13.2% 13.8%
of the COVID-19 pandemic is clearer)
Active capital programmes to issue Additional Tier
1 and Total Capital if needed
Mar-19 Dec-19 Mar-20
Alliance
Alliance Alliance
Capital Ratios Alliance Investment
Bank Islamic
(after proposed Bank Bank
Group Bank
dividends) (ABMB) Group
(ABG) (AIS)
(AIB)
CET 1 Capital Ratio 13.8% 12.9% 10.5% 97.3%
Tier 1 Capital Ratio 14.6% 13.8% 11.6% 97.3%
Total Capital Ratio 18.9% 18.6% 14.2% 98.2%
22Key Results
Contents
1 COVID-19 Supports & Early Impact
2 FY20 Financial Performance
Revenue & Franchise Development
Effective Risk Management
Key Results
3 Going Forward
Our Strategy
FY20 Achievements
FY21 Priorities & Sustainability
4 Appendix
4QFY20 & FY20 Financial Result
23Our Strategy
Results of FY20 Priorities
FY20 Achievement
1 2 Partnerships + 3 Branch in a
Accelerate core businesses
Digital Tablet / Streamlining
a. AOA: +54% y-o-y to >RM5.0 billion a. Ecosystem a. Digital / Straight-
partnerships Through Processing
(STP) account opening)
Consumer
b. Personal Loan: +10% y-o-y to ~RM2.2
billion Signed Memorandum
of Understanding
(MOU) with Celcom
c. CASA: 56k new consumer CASA
Axiata Berhad in Jan
2020
d. SME loans: +8% y-o-y to RM9.4
Business
billion
e. Alliance@Work: +26% y-o-y to ~1,750
new Payroll Companies
24Our Strategy
FY20 Achievement: AOA grew 54% y-o-y to RM5.0 billion
Alliance ONE Account (“AOA”) FY20 Performance
Pre-Jun18
AOA ENR (RM ‘bil) Loan balances (RM bil)
1.7% 1.7% 1.8% 1.8% 1.6% 1.5% 1.5% 1.4% 5.01
+54%
Revenue%
2.0
2.1 2.2 2.2 2.2 2.1 2.1 3.25
1.5 45%
44% 45% 45% 45% 44% 44% Overdraft
44%
56% 55% 55% 55% 55% 56% 56% Term loan
56%
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 FY19 FY20
Alliance ONE Account (“AOA”) 68% of AOA bookings are from our
Post-Jun18 Partners in-Sales & Digital Marketing
AOA ENR (RM ‘bil) % AOA approval by channel
1.1% 1.2% 1.2% 1.1% 1.1% 1.2%
0.03% Revenue% 32% AOA sales team
51%
2.9
2.6 Digital marketing
2.1 25% Overdraft 36%
27% 17%
1.5 28%
1.1
0.1 0.6 29% 75% Term loan Partner in-Sales
30% 72% 73% 32% 32%
27% 30% 70% 71%
0 73% 70%
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 FY19 FY20
25Our Strategy
FY20 Achievement: Personal Loans grew +10% y-o-y
FY20 Performance Simple Personal Loan Application
Loan balances1 (RM bil) 1 Semi-STP for Personal Dec ‘19
Loans via web
2.17 Submit application and
+10% income documents via web
1.97
TAT: 1-2 working days
Approved RM16.8 million
in FY20
26 FY19 FY20
Note: 1. Net IISOur Strategy
FY20 Achievement: SME grew +8% y-o-y while industry contracted
FY20 Performance Alliance Way: Fulfilled via Tablet / Smartphone
Loan balances1 (RM bil)
9.41 1 “1-day, 1 visit”
8.73 +8% Business CASA account Pilot:
opening Nov ‘19
BizSmart online banking
activation Dec ‘19
2 Mobile BizSmart for SMEs Pilot: Jun ‘20
and Electronic Banker
Acceptance & Trust
Receipts
3 Financial health calculator Aug ‘20
FY19 FY20 for RMs
FY19 FY20 Growth (%) 4 Digital SME RM assisted Aug ‘20
Loan model
RM2,581 mil RM2,695 mil 4.4%
acceptance
Loan
RM2,351 mil RM2,510 mil 6.8%
27
disbursement
Note: 1. Net IISOur Strategy
FY20 Achievement: Alliance@Work
Acquired >29k new local employees & >1.7k new payroll companies
New local employees CASA New company payroll accounts
CASA growth
acquired acquired
Number of new accounts Number of new accounts CASA balances (RM ‘mil)
29,776 487.1
1,747
+18%
+26%
25,230
1,392
+263%
134.1
FY19 FY20 FY19 FY20 FY19 FY20
Note: CASA balances include local
28 employees, foreign workers
and new Business CASAOur Strategy
COVID-19: Key impacts to the Bank in FY21
COVID-19 impact to
Automatic moratorium OPR cut
net credit cost
Automatic 6-month moratorium for Full year impact of each 25 bps cut will Conducted scenario analysis to assess
consumer and SME loan / financing reduce NIM by 4 – 5 bps. Permanent the potential impact to net credit cost:
repayments effective 1 April 2020. Out of impact isOur Strategy
FY21 Key Priorities
Financials
Gross loans Revenue Operating expenses
1 Covid-19 management 2 Accelerate remote banking & branch transformation
Financial assistance: Accelerate remote banking (e.g. e-KYC for deposits, digital
loans, migration of transactions to online channels)
Differentiated portfolio actions based on risk stratification:
o “Help / Watch”: Branch transformation (e.g. to pilot new branch model by
end FY21)
- Moratorium
- R&R / loan modifications Pivot the organization by reskilling resources to areas
with greatest needs (e.g. collections, contact centre)
- Guarantee schemes
o “Grow”:
- Grant additional financing for viable businesses
Non-financial assistance:
Connect SMEs to e-commerce
Digital branding and marketing support to help SMEs create
awareness on their products / services
Ensure healthy liquidity ratios and strong based customer funding
30Our Strategy
Non-financial assistance: Connect SMEs to e-commerce
Phase 1: Phase 2: Phase 3:
Digital marketing and branding #SupportLokal Online Bazaar for B2Cs Access to popular e-commerce sites
support BizSmart® Solution Portal for B2Bs
• Help SMEs create social media • Provide free digital marketing and • Help SMEs fast-track the listing
ads and provide paid branding for local businesses to of their products and services on
advertising support to help showcase their products and popular e-commerce sites, e.g.
drive awareness on their services on our corporate website Shopee and Air Asia OURSHOP.
products and services at #SupportLokal Online Bazaar
• Provide business owners access
relevant business solutions and
resources via BizSmart®
Solutions
The initiative has reached more than 3.6 million unique users on Facebook and generated over
31
51,000 clicks to the local businesses’ websites or Facebook pages.Our Strategy
Accelerate remote banking to widen digital propositions &
serve our customers better
Scale up existing innovation Build new digital capabilities
Scale up existing digital products (e.g. Develop new digital products via e-
semi-STP personal loan, RM-assist digital KYC (e.g. new-to-Bank SavePlus account
Product SME loan, e-BA/TR) opening, digital personal loan, non face-
to-face payroll onboarding)
Drive AllianceOnline / BizSmart mobile Migrate customer journeys to online /
Online/
activation via campaigns mobile leveraging on e-KYC
Mobile
Expand service request handling via Expand digital sales assistance
Contact contact center
Channel Center
Shift high volume OTC / service Automate / centralize branch
request to online / mobile and contact operations activities to streamline cost
Branch center to improve convenience for and improve service levels
customers
Temporarily shift staff with bandwidth to areas of needs to better manage productivity
and further improve customer servicing
People
Develop change management approach for staff and provide essential training
32Our Strategy
Manage liquidity risk & cash availability
a) All entities’ liquidity ratio above internal threshold during Loan to Deposits ratio (LDR)
Movement Control Order (MCO)
Target ABG
b) With expected increase in undrawn commitments and
collection shortfall for 6-month moratorium of ~RM280
million collection per month:
Buffer
ABG’s LDR & LFR are still well below internal targets
with buffer over RM1.0 billion 90%
c) In the event of any potential shortfall, we have sufficient
contingent liquidity accessibility:
RM11.5 billion financial assets available for BNM
Mar-20 Jun-20 Sep-20 Dec-20 Mar-21
Repo window
Loan to Funds ratio (LFR)
Target ABG
Buffer
84%
Mar-20 Jun-20 Sep-20 Dec-20 Mar-21
33Our Strategy
Manage financial & capital impact
Key Performance
Strategic Action Plans FY21 Guidance
Indicators
1 Managing growth
Gross loans growth Focus on Tighten credit >2%
green sectors policies
2 Cost-savings initiatives
Manage 0%
Operating expenses Stringent
discretionary opex growth
hiring
expenses
3 Maintain healthy liquidity ratios
Strengthen Accessible Maintain >RM1.0
Liquidity ratios customer alternative billion buffer
based funding funding
34Sustainability
Continue high sustainability standards
1 Supporting the Businesses 2 Supporting the Community
Alliance Islamic Halal in One Programme AEIOU 5 - Financial literacy program for young children
Halal enterprise ecosystem that offers end-to-end solutions for Introduced a new digital element, the AEIOU Financial e-Game
SMEs venturing into the Halal segment (launched in 2020) Challenge (e-Game Challenge)
Offer business advisory services to help SMEs obtain Halal >32,000 entries submitted, >40 students from seven states to
certification from the Department of Islamic Development compete for RM20,000 cash prizes in the grand finale
Malaysia (JAKIM) SocioBiz – Social Crowdfunding Platform
Channels public donation to help B40 segments to start or
#SupportLokal initiative expand a business, or learn a skill to earn a sustainable income
Launched during the MCO to assist SMEs with their recovery Promoted a total of 17 campaigns, and disbursed RM100,000 to
plans and priorities to sustain their businesses fund 16 of these campaigns
Linking these businesses to e-Commerce partner platforms,
Support for Covid-19 Pandemic
such as Shopee and AirAsia OURSHOP.
RM500,000 to MERCY Malaysia’s Covid-19 Pandemic Fund
Participated in Government Guanrantee Programme RM157,000 to the National Welfare Foundation to provide basic
necessities to B40 segment
YTD approved RM515 million Special Relief Fund (“SRF)
Collaborate with AIBIM to raise RM200,000 zakat to fund the
YTD approved RM400 million Credit Guarantee Corporation
35 purchase of Personal Protective Equipment for Hospital Kuala
Loans
Lumpur and Hospital Sungai BulohSustainability
Continue high sustainability standards
3 Supporting the Employees 4 Strengthening Corporate Governance
Smart Casual Dress Code Everyday MSWG Malaysia-ASEAN Corporate Governance
Inculcates an open and flexible work culture. Improved ranking to 26th position (Jul-19) from 28th position
(Nov-17)
Alliance Heroes Continue enhancing CG practices
Recognition programme for employees who exemplify the Disclosed dividend policy in the corporate website (long-term
Bank’s key behaviours in their everyday actions dividend policy of up to 60% dividend payout ratio)
Navigating through Covid-19 Pandemic To release notice of AGM by at least 28 days before the
meeting
Activated split operations & >65% of staff work-from-home
Plan for virtual AGM during current Covid-19 Pandemic
during the MCO
situation
Provided one-off subsidy for incidental expenses
Bursa Malaysia FTSE4Good Index
36 Maintained inclusion since introduction in Dec 2014Key Results
Contents
1 COVID-19 Supports & Early Impact
2 FY20 Financial Performance
Revenue & Franchise Development
Effective Risk Management
Key Results
3 Going Forward
Our Strategy
FY20 Achievements
FY21 Priorities & Sustainability
4 Appendix
4QFY20 & FY20 Financial Result
37Key Highlights Q-o-Q:
Financial Performance
4QFY20 PPOP grew 7.4% q-o-q to RM229.0 mil
Net Interest Income & Non Interest Income &
Revenue
Islamic Net Financing Income NOII Ratio
RM mil RM mil RM mil Client Based Non Client Based
NOII Ratio
24.2%
427.4 434.4 22.0% 21.6%
403.4 405.0 422.5 18.6%
339.8 329.7 340.4 15.8%
323.9 329.5 103.5
93.0 94.0
75.3 22.4 9.3 16.1
63.7
69.4 76.9 81.1 83.7 77.9
(1.6)
(5.8)
4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20
Expected Credit Losses (“ECL”) & Pre-Provision Operating Profit &
Operating Expenses & CIR Ratio
Goodwill Impairments Net Profit
RM mil RM mil Goodwill Impairment RM mil NPAT PPOP
OPEX CIR
ECL on Financial Investments & Impairments
231.3 229.0
50.4% 48.4% 105.2 208.9 213.1
49.5% 47.3% 98.6 200.0
45.9%
79.3 0.6
49.4 3.7
49.1 31.5 134.0
203.5 196.1 196.2 209.3 205.4 8.6 98.4 115.5
0.6 77.2 111.8
55.8 98.1
39.9 41.9 76.7
(1.6) (10.4)
(0.4)
4QFY19 1QFY20^ 2QFY20 3QFY20* 4QFY20#
^Full provisioning of RM49.4m from one large account
*Recoveries of RM9.6m from one large legacy account
4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 #ECL model review & early Covid-19 impact of RM49.2m
4QFY19 1QFY20 2QFY20 3QFY20 4QFY20
38
Note: Revenue and non interest income includes Islamic banking income4Q FY2020:
Q-o-Q Income Statement
Q-o-Q Change Revenue grew by RM12.0 mil or 2.8% q-o-q:
3QFY20 4QFY20 Better / (Worse) Net interest income continue to grow by RM10.9 mil
Income Statement
RM mil RM mil or 3.3% q-o-q from loan & treasury growth and lower
RM mil % funding cost
Net Interest Income 240.3 254.5 Non-interest income grew by RM1.1 mil q-o-q:
10.9 3.3% Higher treasury & investment income
Islamic Net Financing Income 89.2 85.9 Lower client based fee income due to absence of
yearly services charges incurred in Dec19
Islamic Non-Financing
Income 11.7 6.1 Operating expenses lowered by RM3.9 mil mainly
1.1 1.1% from lower personnel expenses and lower IT &
Non-Interest Income 81.3 87.9 premises expenses
Pre-provision Operating Profit (PPOP) grew 7.4%
Net Income* 422.5 434.5 12.0 2.8% q-o-q to RM229.0 mil
OPEX 209.3 205.4 3.9 1.9% Higher net credit cost & impairment q-o-q:
Absence of legacy accounts recovery of RM19.7m
Pre-Provision Operating ECL model review & early Covid-19 impact:
213.1 229.0 15.9 7.4%
Profit (PPOP) +RM45.6 mil
Excluding both items above, net credit cost
Net Credit Cost 41.9 98.4 (56.5) >100% improved RM8.8 mil q-o-q
Expected Credit Losses on
(10.4) (0.4) (9.9) (96%)
Financial Investments
Impairment Losses on Non-
- 0.6 (0.6) -
financial Assets
Pre-tax Profit 181.7 130.4 (51.3) (28.2%)
Net Profit After Tax 134.0 98.1 (35.9) (26.8%)
Notes:
39 * Revenue, net interest income and non interest income includes Islamic banking incomeKey Highlights Y-o-Y:
Financial Performance
FY20 PPOP grew 4.1% y-o-y to RM882.3 million
Net Interest Income & Non Interest Income &
Revenue
Islamic Net Financing Income NOII Ratio
RM mil RM mil RM mil Non Client Based NOII Ratio
1,622.1 1,689.3
1,330.0 1,323.5 21.6% 21.7%
18.0%
15.8%
365.8
46.2
292.1
403.4 434.4 339.8 340.4
63.7 94.0 305.7 319.6
16.1
69.4 77.9
(5.8) (13.6)
4QFY19 4QFY20 FY19 FY20 4QFY19 4QFY20 FY19 FY20 4QFY19 4QFY20 FY19 FY20
Expected Credit Losses (“ECL”) & Pre-Provision Operating Profit &
Operating Expenses & CIR Ratio
Goodwill Impairment Net Profit
RM mil OPEX CIR RM mil Goodwill Impairment RM mil NPAT PPOP
ECL on Financial Investments & Impairments 847.2 882.3
50.4% 47.8% 47.8%
47.3%
807.0 314.5
774.9 4.3
37.0 537.6
49.1 139.2 424.3
98.6 8.6 273.2
0.6 200.0 229.0
8.6 98.4 130.8
39.9 0.6
(0.4) (0.2)
203.5 205.4
111.8 98.1
4QFY19 4QFY20^ FY19 FY20^
^Full provisioning of RM47.7m from one large account in 1QFY20, RM9.6m recovery
from one large legacy account in 3QFY20, ECL model review & early Covid-19
4QFY19 4QFY20 FY19 FY20 4QFY19 4QFY20 FY19 FY20
40
impact of RM49.2m in 4QFY20
Note: Revenue and non interest income includes Islamic banking income4Q FY2020:
Y-o-Y Income Statement
Y-o-Y Change Higher revenue of RM31.0 mil or 7.7% y-o-y:
4QFY19 4QFY20 Better / (Worse) Non-interest income increased RM30.4 mil y-o-y:
Income Statement
RM mil RM mil
RM mil % Higher client based fee income mainly driven by
insurance & bancassuance business
Net Interest Income 253.3 254.5 Higher treasury & investment income
0.6 0.2%
Net interest income grew steadily y-o-y
Islamic Net Financing Income 86.5 85.9
Higher operating expenses by RM2.0 mil mainly due
Islamic Non-Financing to higher personnel expenses on annual increment with
Income 7.2 6.1 higher headcount
30.4 47.7%
Pre-provision Operating Profit (PPOP) grew 14.5%
Non-Interest Income 56.5 87.9 y-o-y to RM229.0 mil
Net Income* 403.4 434.5 31.0 7.7% Higher net credit cost &impairment y-o-y:
ECL model review & early Covid-19 impact:
OPEX 203.5 205.4 (2.0) (1.0%) +RM45.6 mil
Consumer banking: +RM10.2m mainly from
Pre-Provision Operating Personal Financing and Mortgage including AOA
200.0 229.0 29.0 14.5%
Profit (PPOP)
Net Credit Cost 39.9 98.4 (58.5) (>100%)
Expected Credit Losses on
0.6 (0.4) 1.0 >100%
Financial Investments
Impairment Losses on Non-
8.6 0.6 8.0 92.7%
financial Assets
Pre-tax Profit 150.9 130.4 (20.5) (13.6%)
Net Profit After Tax 111.8 98.1 (13.7) (12.3%)
Notes:
41 * Revenue, net interest income and non interest income includes Islamic banking incomeFY2020:
Y-o-Y Income Statement
Revenue grew 4.1% y-o-y to RM1.69 bil:
Y-o-Y Change
FY19 FY20 Better / (Worse) Higher non-interest income by RM73.7 mil or
Income Statement
RM mil RM mil +25.2% y-o-y due to:
RM mil %
Higher client based fee income mainly from
Net Interest Income 998.1 980.8 wealth management fees and banking services
fees
(6.4) (0.5%)
Islamic Net Financing Income 331.9 342.7 Higher treasury & investment income
Net interest income remained steady y-o-y
Islamic Non-Financing
Income 27.1 35.2 Excluding OPR cut impact & delinquency
73.7 25.2% pricing revision, normalised net interest income
Non-Interest Income 265.0 330.6 grew +4.0% y-o-y
Operating expenses increased by RM32.1 mil or
Net Income* 1,622.1 1,689.3 67.2 4.1% 4.1% mainly from higher personnel expenses and
investment in IT infrastructure
OPEX 774.9 807.0 (32.1) (4.1%) Pre-provision Operating Profit (PPOP) grew 4.1%
y-o-y to RM882.3 mil
Pre-Provision Operating
847.2 882.3 35.1 4.1% Higher net credit cost from:
Profit (PPOP)
ECL model review & early Covid-19 impact:
Net Credit Cost 130.8 273.2 (142.4) (>100%) +RM45.6 mil
Consumer banking: +RM60.0m from Mortgage
Expected Credit Losses on including AOA & personal financing
(0.2) 37.0 (37.2) (>100%)
Financial Investments A few large accounts partly offset by legacy
Impairment Losses on Non- account recoveries
8.6 4.3 4.3 49.7%
financial Assets Full impairment on financial investment from one
large account partly of RM47.7 mil partly offset by
Pre-tax Profit 708.0 567.9 (140.2) (19.8%) write-back in financial investments from legacy
account recovery of RM9.6m
Net Profit After Tax 537.6 424.3 (113.3) (21.1%) Goodwill impairment from stockbroking business of
RM3.7 mil & financial markets of RM0.6 mil
Notes:
42 * Revenue, net interest income and non interest income includes Islamic banking incomeQ-o-Q Summarised
Balance Sheet
Q-o-Q Change Net loans grew 0.1% q-o-q
Dec 19 Mar 20
Balance Sheet SME loans growth of 3.0% (vs industry:
RM bil RM bil
RM bil % -8.8%#)
Continued strong build up for Alliance ONE
Total Assets 58.5 61.0 2.4 4.2% Account (+RM304 mil or 6.4% q-o-q).
Treasury Assets* 11.8 12.8 0.9 7.7% Customer based funding grew by 3.8% q-o-q
(industry total deposits: -0.1%^).
Net Loans 43.1 43.1 0.06 0.1% CASA deposits grew by 3.7% mainly driven by
SavePlus (+RM0.5 bil) (industry: +4.1%^).
CASA Deposits 17.5 18.1 0.6 3.7%
Successful fixed deposits campaigns (+RM0.6
bil)
Customer Based Funding⁺ 47.1 48.9 1.8 3.8%
Liquidity coverage ratio: 156.7%
Shareholders’ Funds 5.9 6.0 0.1 1.3% (vs 162.5% in December 2019, industry: 141.4%^).
Net Loans Growth (y-o-y) 5.3% 1.9%
CASA Deposits
7.7% 13.6%
Growth (y-o-y)
Customer Based Funding⁺
8.9% 6.5%
Growth (y-o-y)
Notes:
* Treasury assets comprise financial assets (FVOCI, FVTPL, AMC) & derivative financial assets
⁺ Customer based funding = CASA + Fixed Deposits + Money Market Deposits + Retail Negotiable Instrument of Deposits + Structured Investments
^ BNM Monthly Statistical Bulletin March 2020
43 # BNM Financial Institution Network March 2020 statisticsY-o-Y Summarised
Balance Sheet
Y-o-Y Change Net loans grew by 1.9% y-o-y.
Mar 19 Mar 20
Balance Sheet SME loans growth of 8.0% y-o-y (industry:
RM bil RM bil
RM bil % -10.4%#)
Total Assets 56.5 61.0 4.5 7.9% Continued strong build up for Alliance ONE
Account (+RM1.8 bil)
Treasury Assets* 10.0 12.8 2.8 27.5% Personal Financing growth of RM208 mil y-o-y
Customer based funding increased by 6.5% y-o-y
Net Loans 42.3 43.1 0.8 1.9%
(industry total deposits: +2.1%^).
CASA Deposits 16.0 18.1 2.2 13.6% CASA deposits grew by 13.6% mainly driven by
SavePlus (+RM1.7 bil) (industry: +10.3%^).
Customer Based Funding⁺ 45.9 48.9 3.0 6.5% Successful fixed deposits campaigns (+RM1.2
bil)
Shareholders’ Funds 5.7 6.0 0.3 4.5%
Liquidity coverage ratio: 156.7%
(vs 154.3% in March 2019, industry: 141.4%^).
Net Loans Growth (y-o-y) 5.8% 1.9%
CASA Deposits
0.04% 13.6%
Growth (y-o-y)
Customer Based Funding⁺
5.3% 6.5%
Growth (y-o-y)
Notes:
* Treasury assets comprise financial assets (FVOCI, FVTPL, AMC) & derivative financial assets
⁺ Customer based funding = CASA + Fixed Deposits + Money Market Deposits + Retail Negotiable Instrument of Deposits + Structured Investments
^ BNM Monthly Statistical Bulletin March 2020
44 # BNM Financial Institution Network March 2020 statisticsKey Financial Ratios
Financial Ratios 4QFY19 3QFY20 4QFY20 FY19 FY20
Return on Equity 8.1% 9.3% 7.1% 9.9% 7.3%
Shareholder Value Earnings per Share 7.2sen 8.7sen 6.6sen 34.7sen 27.4 sen
Net Assets per Share RM3.70 RM3.82 RM3.87 RM3.70 RM3.87
Net Interest Margin 2.57% 2.39% 2.46% 2.50% 2.40%
Efficiency Non-Interest Income Ratio 15.9% 22.0% 21.6% 18.0% 21.7%
Cost to Income Ratio 50.4% 49.6% 47.3% 47.8% 47.8%
Balance Sheet Net Loans (RM bil) 42.3 43.1 43.1 42.3 43.1
Growth Customer Based Funding (RM bil) 45.9 47.1 48.9 45.9 48.9
Period End net credit cost (basis
9.6 7.7 22.7 31.5 72.1
points)
Asset Quality Gross Impaired Loans Ratio 1.1% 1.9% 2.0% 1.1% 2.0%
Net Impaired Loans Ratio 0.6% 1.2% 1.3% 0.6% 1.3%
Loan Loss Coverage Ratio^ 142.9% 101.6% 101.4% 142.9% 101.4%
CASA Ratio 35.5% 37.5% 37.4% 35.5% 37.4%
Loan to Deposit Ratio 94.9% 93.4% 90.2% 94.9% 90.2%
Liquidity
Loan to Fund Ratio 86.6% 86.6% 83.6% 86.6% 83.6%
Liquidity Coverage Ratio 154.3% 162.5% 156.7% 154.3% 156.7%
Common Equity Tier 1
13.4% 13.2% 13.7% 13.4% 13.8%
Capital Ratio
Capital
Tier 1 Capital Ratio 14.1% 14.0% 14.4% 14.1% 14.6%
Total Capital Ratio 18.5% 18.3% 18.7% 18.5% 18.9%
45
Note: ^ Loan Loss Coverage includes Regulatory Reserve provision [excluding Regulatory Reserve: 74.9% at 4QFY20 (vs. 72.7% at 3QFY20)Thank You.
Disclaimer: This presentation has been prepared by Alliance Bank Malaysia Berhad (the “Company”) for information purposes only and does not purport to
contain all the information that may be required to evaluate the Company or its financial position. No representation or warranty, expressed or implied, is
given by or on behalf of the Company as to the accuracy or completeness of the information or opinions contained in this presentation.
This presentation does not constitute or form part of an offer, solicitation or invitation of any offer, to buy or subscribe for any securities, nor should it or any
part of it form the basis of, or be relied in any connection with, any contract, investment decision or commitment whatsoever.
The Company does not accept any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in
connection therewith.
For further information, please contact: Alliance Bank Malaysia Berhad Investor Relations
31st Floor, Menara Multi-Purpose Email: investor_relations@alliancefg.com
Capital Square
No. 8, Jalan Munshi Abdullah
50100 Kuala Lumpur, Malaysia
Tel: (6)03-2604 3333
http://www.alliancebank.com.my/InvestorRelationsYou can also read
