Kuala Lumpur, 26 May 2008 - The Alliance Financial Group registered a profit before taxation of RM502.0 million for the 12 months ended 31 March 2008, a marked increase of RM351.2 million or 232.9% compared to the previous financial year.

The improvement in the Group's performance was primarily due to higher operating profit contributed by higher net income, other operating income and better recoveries.

Datuk Bridget Lai, Director of Alliance Financial Group Berhad who is also the Group Chief Executive Officer of Alliance Bank Malaysia Berhad, said, "The Group's strong performance reflects the effectiveness of the range of strategic initiatives that we have undertaken to strengthen our position and deliver greater value to our shareholders".

"Our ongoing transformation journey and new business models as well as re-engineered business processes and systems have enabled us to generate higher productivity and enhance overall effectiveness to achieve such positive results," said Datuk Lai.

Consumer and Commercial/SME loans back net income growth

Meanwhile, the Group's net income grew by 10.3% to RM1,017.5 million compared to the last financial year. The growth in the Group's net income was attributed to improved interest income mainly from loans growth in Consumer and Commercial/SME banking and higher operating income.

Other operating expenses at RM470.1 million was 4.4% or RM21.8 million lower than the previous financial year. This was mainly due to the reversal of certain provisions for expenses, particularly marketing expenses and personnel related expenses with the introduction of the Employees' Share Scheme.

Asset quality improves further, net NPLs decline

The Group's asset quality continued to improve with net non-performing loans (NPLs) ratio declining from 5.5% as at 31 March 2007 to 3.3% as at 31 March 2008. Gross NPLs provisioning coverage further improved to 80% compared to 67% as at 31 March 2007.

The Group's gross loans and advances increased by 14.2% to RM16.5 billion compared to 31 March 2007. Consumer and Commercial/SME loans registered 22.5% and 24% growth respectively for the 12-month period. The Group's risk-weighted capital ratio remained strong at 16.2% (after proposed dividend).

Securing greater market share and sustainable growth

On the Group's future plans, Datuk Lai said "With the strategies, business models and infrastructure in place, we now need to scale up our business to achieve greater market share and maximize revenue for sustainable quality growth and profitability".

Barring any unforeseen circumstances, the Group is expected to continue to record satisfactory performance in the new financial year ending 31 March 2009.

For further enquiries please contact:

Philip Goh Teck Siang
Group Chief Financial Officer
Alliance Bank Malaysia Berhad
15th Floor, Menara Multi Purpose
8 Jalan Munshi Abdullah
50100 Kuala Lumpur
philipgoh@alliancebg.com.my
Tel: 03-2730 2388, Fax: 03-7490 9696

Lee Wei Yen
Group Company Secretary
Alliance Financial Group Berhad
3rd Floor, Menara Multi Purpose
8 Jalan Munshi Abdullah
50100 Kuala Lumpur
simonlee@alliancegroup.com.my
Tel: 03-2694 4888 ext. 1980
Fax: 03-2694 6200