ANALYST BRIEFING- 9 Months Ended 31 December 2011 -

Executive Summary

Financial Results for 9MFY2012

Contents

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Questions & Answers3

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CIR

ROE

DividendPolicy

… move to industry average (45% - 48%) through:• targeted revenue growth• improved productivity

… achieve industry average (14% - 16%) through:• focus on underlying earnings• effective capital management

… pay “as much as we can afford, whenever we can”, subject to maintaining strong capital ratios

In FY2012, we are setting a sound foundation to deliver on our medium term (3-5 years) targets …

… to be better than industry average

… and increase non-interest income to 30% of total revenue

Our Medium Term Targets

AssetQuality

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InvestmentBank

InvestmentBank

• Wealth Management

• Bancassurance

• Advisory

• Stockbroking

Revenue: Driving Fee Income through Cross-Selling

CONSUMER BANKING• Mortgage Loans

• Credit Cards

• Personal Loans

• Hire Purchase

• Deposits

Existing Opportunities

BUSINESS BANKING• SME• WHOLESALE

• Transaction Banking Cash Management

Trade Finance

• Treasury Sales

• Investment Banking

Existing Opportunities

New Growth Opportunities New Growth

Opportunities

ConsumerConsumer SMESME WholesaleWholesale TreasuryTreasury IslamicIslamic

Line of Business

Major Products

Strategy

ROE; ROA; CIR

Our Business Model

FY2012 - 2015: By building sustainable growth in Consumer and SME Banking

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Earnings Performance – Net Profits up 14.8% y-o-y

RM’ m 3Q12 3Q11 Change 9M12 9M11 Change

Net interest & Islamic banking income 231.9 227.0 2.1% 704.1 684.7 2.8%

Non-interest income 79.4 57.9 37.1% 231.7 173.5 33.5%

Net income 311.4 284.9 9.3% 935.8 858.2 9.0%

Operating expenses 148.1 137.4 7.8% 435.2 398.6 9.2%

Operating profit 162.9 147.6 10.4% 499.3 459.6 8.6%

Loan impairment recovery/ (allowances) 0.2 3.2 na 0.2 -20.8 na

Pre-tax profit 163.1 150.8 8.2% 499.5 438.7 13.8%

Net Profit after Tax 121.4 111.3 9.1% 372.3 324.2 14.8%Income Net interest income grew 2.8%,

despite 12.3% y-o-y loans growth due to margin compression.

Strong growth in non-interest income from transactional fee income, FX sales and treasury trading

Expense• Positive jaws due to

improvements in productivity and moderate rise in expenses

Allowance• Lower impairment allowances

in 3Q despite collective provisions at 1.5% for the strong loan growth, as a result of RM10m recovery from CLOs.

Summarized Income Statement

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RM’ m 3Q12 3Q11 Change 9M12 9M11 Change

Earning per Share (sen) 7.9 7.3 24.4 21.2

Net return on equity * 14.1% 13.8% 14.1% 13.8%

Net return on assets * 1.3% 1.3% 1.3% 1.3%

Net interest margin on yielding assets 2.5% 2.5% 2.6% 2.7%

Non-interest income/Total income 27.4% 21.1% 26.1% 21.0%

Cost to income ratio 47.6% 48.2% 46.5% 46.4%

* Key earnings indicators, have been annualized for comparison purposes

Income Statement: Summarized Ratios

Earnings Performance: Delivering sustainable returns consistent with Medium Term Strategy 14.1% return on equity – driven by higher non-interest income 26.1% non-interest income ratio – driven mainly by recurring transactional income 46.5% cost to income ratio – driven by productivity improvements

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Strong financial position

RM’ b 3Q12 3Q11 change

Total Assets 38.6 36.9 4.6%

Loans and Advances 23.6 21.0 12.3%

Deposit from customers 30.6 28.0 9.2%

Shareholders’ Funds 3.7 3.3 12.1%

Net assets per share (RM) 2.39 2.15 11.2%

Loans to deposits (LD) ratio (%)

77.1% 74.9% 2.2%

Gross impaired loans 2.5% 3.7% 1.2%

Loan loss coverage 107.6% 83.1% 24.5%

RWCR (%) 15.2% 15.9%

Assets• Assets expansion driven by strong loans

growthLoans• Annualized loans growth for 9 months at

12.3%, due to expansion in SME and Consumer lending activities.

• Better than industry asset quality, as gross impaired loans dropped to 2.5%. Net impaired loans at 1.4%, with loan loss coverage rising to 107.6%

Deposit• CASA ratio maintained at 35.6%.• Loans to Deposits ratio up to 77.1%,

reflecting more effective utilization of balance sheet.

Shareholders Funds• Shareholders’ funds increased to RM3.7

billionRWCR• Strong capital position at 15.2%, well above

regulatory and Basel III requirements.

SummarizedBalance Sheet

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Financial Results for 9MFY2012

Questions & Answers

Contents

Executive Summary

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7

Performance Overview – Strong Net Profit Growth

111.3 121.4

324.2 372.3

0

50

100

150

200

250

300

350

400

3Q11 3Q12 9M11 9M12

Net Profit After Tax

3Q11 4Q11 1Q12 2Q12

NPAT 111.3 84.9 129.8 121.1

EPS (sen) 7.3 5.5 8.5 7.9

14.8%

9.1%

EPS (sen) 7.3 7.9 21.2 24.4

• 9 Months results• NPAT growth 14.8%• EPS growth 15.1%

• Quarterly NPAT• YOY growth 9.1%• QoQ stable (3QFY12: 121.4m; 2QFY12: 121.1m)

• Non-interest Income growth • 3Q growth YoY 37.1%• 9M growth YoY 33.5%

• Loans book growth YoY 11.5%

PerformanceOverview

RM’m

8

585.5

2.6%

Cost of Funds (COF)

Net Interest Income

Sustainable interest income and marginInterest Income

Rise in cost of funds due mainly to the 50bps rise in OPR and 3% increase in statutory reserve ratio. There was 25bps rise each in OPR on 8 July 2010 and 5 May 2011.

2.1% 2.1%

2.3% 2.3% 2.3%

2.4% 2.4%2.5%

2.5%

1.5%

2.0%

2.5%

3.0%

3.5%

Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12

AFG Industry (computed)*RM ’m

168.0 159.8 168.7 176.0 165.6

2.5%

2.4%

2.5%

2.6%

2.5%

2.6%

2.5%2.5% 2.5%

2.0%

2.1%

2.2%

2.3%

2.4%

2.5%

2.6%

2.7%

0.0

50.0

100.0

150.0

200.0

250.0

300.0

Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12

Net Interest Income

AFG's NIM - rhs

Industry's NIM (computed)* - rhs

Note: * based on 9-listed banks (2QFY12 refers to industry data up to Sept 2011 for 8 listed banks) 9

Non-interest income contribution & growth momentum

commissions17%

Gain on sales of AFS/HTM/HFT

24%

Revaluation gain15%

Brokerage5%

Commmitment fees5%Guarantee fees

3%

Dividends income4%

Portfolio managemnet

2%

Corp advisory2%

Processing fees3%

Service charges &fees10%

Others10%

Non-interest income contribution 9MFY12

9M11 9M12

9M YTD yearly growthFees Income Gain on sales securitiesRevaluation of securities Dividend incomeOther Income

33.5%

Non-Interest Income

33.5% increase in non-interest income.

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Non-Interest Income

Commissions Fee Income Investment IncomeForeign Exchange Gain

18.5

57.8

7.2

Other Income

26.6

53.1

235.0 233.2 225.7

Non-interest income gaining momentum driven by combination of service charges, commissions from sale of wealth management products, foreign exchange and treasury trading activities.

Non-interest income gaining momentum driven by combination of service charges, commissions from sale of wealth management products, foreign exchange and treasury trading activities.

Non-interest income gaining momentum

-10

30

70

110

150

190

230

9MFY11 9MFY12

40.326.4

80.087.4

98.8

44.2

14.8

10.15.5

(2.1)

173.5

231.7

+52.6%

-8.5%

+123.7%

RM ’m

235.0 233.2 225.7 235.7

9MFY2012 major achievements9MFY2012 major achievements9MFY2012 major achievements9MFY2012 major achievements

Non-interest income trend9M YTD yearly growth

RM ’m

57.9 52.2 79.2 73.1 79.4

21.1%20.1%

26.4%

24.6%

27.4%

0%

5%

10%

15%

20%

25%

30%

0

10

20

30

40

50

60

70

80

90

Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12

Non-Interest Income - lhs NII / Total Income - rhs

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Operating Expenses and CIR TrendsOperating Expenses Trends

45.2%

45.9%

48.2%

54.1%

46.5%45.5%

47.6%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

0

40

80

120

160

200

Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12

Administration and general expensesMarketing expensesEstablishment expensesPersonnel expensesCIR %

Operating Expenses

277.5107.3

13.536.9

YTD Dec 2011

Personal expensesEstablishment expensesMarketing expensesAdminkistration and general expenses

12.0%-1.5%

• Personnel cost remain the main operating expenses as we continue to invest in human capital.

• Overall cost increased by 9.2% in line with expansion of business.

Operating Expenses

RM’m

12

Note: * based on 9-listed banks (2QFY12 refers to industry data up to Sept 2011 for 8 listed banks)

Operating Expenses

Cost to Income Ratio (CIR)9MFY12 9MFY11

RM ’m

Overheads Breakdown

Cost to Income Ratio now in line with industry average

35%

40%

45%

50%

55%

3QFY11 4QFY11 1QFY12 2QFY12 3QFY12

CIR - AFG CIR - Industry ( *computed)

0 100 200 300 400 500

Admin & GeneralExpenses

MarketingExpenses

Establishment Costs

Personnel Costs

TotalOverheadExpenses

9MFY12 9MFY11

398.6

435.2

247.7

277.5

107.3

108.9

13.5

11.2

36.9

30.7

+9.2%

+12.0%

-1.5%

+20.0%

+20.2%

46.5 45.846.344.5

46.546.046.5

48.5

46.4

• Personnel cost remain the main operating expenses as we continue to invest in human capital. • Overall cost increased by 9.2%.• Cost-to-income ratio (“C/I”) ratio maintained at 46.5% compared to 46.4% 3Q last year.

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26.6% 34.4% 28.3%6.8 8.1 8.0

14.1 12.214.6

1.61.7 1.6

6.4%

7.1%

5.8%(1.9%)

8.9

14.3

1.7

29.3%

5.5%

Gross loan grew by 11.5% Y-o-Y

Loans

0

5

10

15

20

25

30

Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12

Variable Rate Fixed Rate

2.9

RM’b

24.223.5

21.622.622.4

3.3 3.1 2.9 2.9

21.320.619.719.318.3

0 5 10 15

Others

Working capital

Mergers and acquisition

Construction

Credit card

Personal use

Purchase of fixed assets

Purchase of landed property

Purchase of transport vechicles

Purchase of securities

9MFY12 9MFY11

+0.5

+1.2

+0.6

RM’b

+11.5%

Gross Loans Composition Loans by Economic Purposes

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Loans by Economic Purpose

15% -21% 9% 16% 15% 1% -6% -13% 10% 98%

1.6% 2.4% 38.9% 13.4% 0.5% 8.9% 2.6% 0.8% 1.3% 24.6% 5.0%

- 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

Purchase ofSecurities

Purchase oftransportVehicles

Purchase ofResidentialproperties

Purchase ofNon-Residential

properties

Purchase offixed assets(ex-landed)

Personal Use Credit Card Contruction M&A Working Capital Others

-25%

-5%

15%

35%

55%

75%

95%

3Q12 3Q11

Composition

92.6

77.2 80.0

77.3

78.9

7.9

3.3

7.6

11.5

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY1265.0%

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%

Y-o-Y Loan Growth And LDR Trends

LDR % (LHS) Y-o-Y Loan Growth % (RHS)

5.0%4.8

82.8

6.2

Y-o-Y %

Loans

79.2

15

Strong Liquidity with Stable loan and deposit growth

92.6%

82.8%

77.2% 79.2%

80.0%

77.3%

78.9%

65%

70%

75%

80%

85%

90%

95%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

Loan Deposit Ratio (%)

0

2

4

6

8

10

12

14

Consumer Business Banking Others

Gross Loan Composition by Segment

3Q11 3Q12

12.6

0

2

4

6

8

10

12

14

16

Consumer Business Banking Others

Deposit Composition by Segment

3Q11 3Q12

• LDR remained stable and healthy below 80%.• Loan growth continues to be supported through

the consumers and business banking• Deposit growth 9% with equal contribution from

Business banking

Loans

12.3

8.1 9.9

0.30.2

RM’b RM’b

15.0 15.1

8.7 9.2

5.1 6.9

16

Deposit Trend And CASA Ratio Trends

8.0 7.8 8.2 8.0 8.4 8.9 9.2

11.8 14.2 14.3 14.6 14.3 14.3 13.5

41.4%

35.4%

34.9%

34.0%

35.5% 34.8%35.6%

0.0%

15.0%

30.0%

45.0%

0

10

20

30

40

50

Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12

NID FD DD SA CASA Ratio

RM’b

• Steady growth momentum on Demand Deposit.

• CASA Ratio at a stable and healthy level.

• 9 months YTD total deposit growth 9.1% vs. prior year.

• YTD CASA balances growth 11.2% Y-o-Y.

Deposits

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Diversified Source of Customer Deposit

21,86324,109 24,422

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

3Q10 3Q11 3Q12

Type of Deposit

Customer Deposits Core Deposit NID&MMD

12,210 14,309 13,528

8,0028,192 9,233

0

5,000

10,000

15,000

20,000

25,000

30,000

3Q10 3Q11 3Q12

Source of Core Deposit

Fixed deposit Current accounts Saving accounts

12.7%

Core deposit mainly fixed deposit with steady increase in current accounts deposit

Deposits

RM’m RM’m

18

(115.1) 31.9 (33.3) 875.1 806.3 741.3

RM ’m %

Asset Quality

Loan loss coverage at 107.6% due to the 1.5% collective provisions for the loans growth Net impaired loans down to 1.4% is below the industry average of 1.9%

1.8% 1.8% 1.8%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

3QFY11 4QFY11 1QFY12 2QFY12 3QFY12

Gross impaired loan ratioNet impaired loan ratioIndustry's computed net impaired loan ratio*

3.7

3.3

3.0

2.62.5

2.2

1.91.8

1.4 1.4

30

50

70

90

110

0

200

400

600

800

1,000

FY2009 FY2010 FY2011 9MFY12

Collective Assessment Allowance - lhsIndividual Assessment Allowance - lhsAFG's LLC - rhsIndustry's LLC (computed)* - LLC - rhs

531.8 438.6 328.4 264.6

373.8

339.6

322.9

340.2

96.3%

107.6%

90.1%

96.9%99.9%

94.4%

95.1%

99.7%

1.9

2.3

2.12.2

2.0

Note: * Industry data were sourced from Monthly Statistical Bulletin November 2011 19

Capital Management

11.2

11.9 11.8 12.0

11.3

11.911.4

15.516.1 15.9 16.1

15.3

15.8

15.2

8.0%

9.0%

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

17.0%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

Core Capital Ratio RWCR

• Strong profit generation capacity

• Strong assets quality

• Continuous enhancement , emphasis on less capital intensive fee based and non interest income business

• Strong shareholders

• Basel III - meet requirements

Legal Entities

Core Capital RWCR

ABMB 13.29% 13.68%

AIS 11.28% 13.13%

AIBB 70.57% 71.20%

Capital Adequacy by Legal Entities

Capital

20

• Performed well in 9 months FY2012 despite competitive and challenging economic environment.

• Clear niche position in Consumer and Business Banking segments.

• Strong and healthy balance sheet in terms of capital and liquidity.

• Continued focus on strengthening risk management capabilities.

• Performed well in 9 months FY2012 despite competitive and challenging economic environment.

• Clear niche position in Consumer and Business Banking segments.

• Strong and healthy balance sheet in terms of capital and liquidity.

• Continued focus on strengthening risk management capabilities.

• Improving customer service, cross-selling, productivity and reducing turn around times. remains a major priority.

• Strong full senior management team now in place.

• Improving customer service, cross-selling, productivity and reducing turn around times. remains a major priority.

• Strong full senior management team now in place.

• Focus on revenue growth in core areas of expertise.

• Successfully restarted momentum in mortgage and generic personal lending.• Leverage on all our business franchises to achieve long term sustainable growth

especially in non-interest income activities.

• Focus on revenue growth in core areas of expertise.

• Successfully restarted momentum in mortgage and generic personal lending.• Leverage on all our business franchises to achieve long term sustainable growth

especially in non-interest income activities.

The Bank remains strong and well-positioned.The Bank remains strong and well-positioned.

Today,Alliance Bank Group

Clear strategy and the right team to deliver it.Clear strategy and the right team to deliver it.

Achieving continued growth.Achieving continued growth.

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Financial Results for 9MFY2012

Questions & Answers

Contents

Executive Summary

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3

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Alliance Financial Group31st Floor, Menara Multi-PurposeCapital SquareNo. 8, Jalan Munshi Abdullah50100 Kuala Lumpur, MalaysiaTel: (6)03-2070 1322www.alliancebank.com.my/investorrelations.html

THANK YOU

Eric LeeGroup Chief Financial OfficerContact: (6)03-2730 2388Email: ericlee@alliancefg.com

Disclaimer: This presentation has been prepared by Alliance Financial Group (the “Company”) for information purposes only and does not purport to contain all theinformation 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 theCompany 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 itform 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 inconnection therewith.

For further information, please contact: Amarjeet KaurGroup Corporate Strategy & DevelopmentContact: (6)03-2034 4386Email: amarjeet@alliancefg.com

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