Update AFG 1Q net profit falls 5% to RM130.8m

by **Cals** Mon 11 Aug 2014, 22:48

Update AFG 1Q net profit falls 5% to RM130.8m

Business & Markets 2014

Written by Shalini Kumar of theedgemalaysia.com

Monday, 11 August 2014 14:28

KUALA LUMPUR (Aug 11): Alliance Financial Group Bhd (AFG) has posted a 5% decline in its net profit to RM130.8 million for the first quarter ended June 30, 2014, from RM137.8 million a year earlier.

Revenue decreased to RM336.7 million, from RM364.2 million previously.

In a filing with Bursa Malaysia this afternoon, AFG said net interest income grew by RM15.4 million or 8.3%, driven by year-on-year loans growth of 15.7% to RM32.8 billion, as at June 30.

"Other operating income (non-interest income) was lower than last year by RM42.6 million or 33.9%, mainly due to a one-off sign-on fee of RM30 million from a bancassurance arrangement recognised last year and lower gain from sale of financial investments, in view of the sluggish treasury and capital market," it said.

Total deposits from customers registered a growth of 10.9% to RM39.6 billion compared to a year ago, with current account, savings account (CASA) deposits increasing by RM1 billion or 7.6% to RM13.7 billion.

The group's CASA ratio was at 34.7%.

Group chief executive officer Sng Seow Wah said the group had paid a special dividend of 10.5 sen per share on June 26.

"No interim dividend has been declared during the quarter, as the dividend announcement will now coincide with the announcement of the half year interim and year end results," he said, adding that the group would continue its commitment to pay up to 60% of its net earnings as dividends.

Looking ahead, Sng said AFG will continue to capitalise on its strengths to generate sustainable revenue from existing business in consumer banking and business banking, and expand opportunities in wealth management, transaction banking, treasury and investment banking.

"The group expects to deliver a satisfactory performance for the financial year ending March 31, 2015," he said.