KUALA LUMPUR (Nov 29): Alliance Financial Group Bhd (AFG) net profit for the second quarter ended Sept 30, 2016 (2QFY17) dipped to RM132.58 million, versus RM134.66 million a year earlier.

In a filing with Bursa Malaysia today, AFG said its revenue for the quarter fell to RM359.72 million, versus RM365.91 million a year ago (2QFY16), while earnings per share was 8.70 sen, as compared to 8.80 sen last year.

It declared a first interim dividend of 8.5 sen per share, to be paid on Dec 16, 2016.

For the six months ended Sept 30 (1HFY17), AFG’s net profit rose to RM265.05 million, from RM256.59 million a year ago; on the back of a revenue of RM723.53 million, as compared with RM710.25 million in 1HFY16.

In a statement today, AFG chief executive officer Joel Kornreich said the banking group continued to deliver good financial results, because of its strategy of focusing on risk adjusted returns, effective risk management measures and optimisation of balance sheet mix.

“Our SME loans grew 14.0% and net interest margins improved to 2.22% YOY [year-on-year]. Quarter-on-quarter, our loan to deposit ratio and loan to fund ratio improved to 84.6% and 81.5% respectively, while our CASA ratio remains steady at 32.9%.”

The group’s total capital ratio remains healthy at 16.8%, versus 13.6% a year ago.

The group’s return on equity for the first half of the year (1HFY17) was 10.9%. Net assets per share meanwhile improved to RM3.27, from RM2.98 a year ago (1HFY16).

“We declared an interim dividend of 8.5 sen per share, representing a dividend payout ratio of 50%,” he said.

On AFG’s prospect, Kornreich said the Malaysian economy registered a gross domestic product (GDP) growth of 4.3% in the third quarter of this year.

“Meanwhile, GDP growth for 2016 is expected to be at the lower end of the government’s target of between 4.0% and 4.5%.

“Given these circumstances, the group will continue to leverage on its franchise strength to deliver the best counsel and service to serve the needs of its customers.

“The group will also continue to optimise and streamline its operations for enhanced efficiency, and roll out new, innovative solutions in the coming months to help customers improve their lives,” he said.