KUALA LUMPUR: Alliance Financial Group Bhd (AFG) reported a strong set of earnings in the fourth quarter ended March 31, 2016 at RM129.85mil, boosted by its loans to the small and medium enterprises (SMEs), from the RM93.27mil a year ago.
The banking group said on Thursday that revenue was up 14% to RM492.81mil from RM432.02mil a year ago. Earnings per share were 8.5 sen compared with 6.1 sen. It also proposed a dividend per share of 6.5 sen, up from 6.4 sen.
For the FY ended March 31, 2016, its earnings dipped 1.6% to RM522.04mil from RM530.78il a year ago. Its revenue however, increased 8.5% to RM1.92bil from RM1.77bil.
AFG said for FY16, better risk adjusted return loans grew at the rate of 15%, five times as fast as lower risk adjusted return loans. Its net interest margin was maintained at 2.15%.
Its loans growth in the SME sector remained strong, recording a 19.7% on-year growth while gross impaired loans ratio was at 1%.
Overall gross impaired loans ratio at 1.3%, better than industry average of 1.6%. Loan loss coverage ratio was 109.1%. Strong loan to deposit ratio and current account/ savings account ratios at 84.2% and 32.1% respectively
AFG's chief executive officer Joel Kornreich said the banking group's strategy of growing its best performing segments and optimising its deposit mix continued to yield positive results.
“Being selective in our loans growth strategy has also helped us maintain a very healthy liquidity position, with a loan to deposit ratio of 84.2%, loan to fund ratio of 80.1% and CASA ratio of 32.1%,” he added.
Kornreich said AFG's total capital ratio was now near the top of the industry, at 17.4% vs. 13% a year ago.
“Reflecting our continuous efforts to enhance shareholder value, the return on equity for the year was 11.2%, while the net assets per share improved to RM3.13, from RM2.90 a year ago,” he said.
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