AFG gets shareholder nod for listing status change
Published on: Thursday, July 13, 2017
Kuala Lumpur: Alliance Financial Group Bhd (AFG) has received shareholder approval for the proposed corporate reorganisation exercise whereby its listing status will be assumed by its wholly-owned core subsidiary, Alliance Bank Malaysia Bhd (ABMB).AFG Chairman Datuk Oh Chong Peng said the proposed corporate exercise would involve, among others, the AFG shareholders exchanging their existing shares for ABMB's shares on a 1-for-1 basis where the number of shares held and the percentage shareholding would be the same in both companies.The group announced the exercise in September 2016, and had received approvals from the Ministry of Finance, Bank Negara Malaysia and Securities Commission, and the nod from its shareholders.ADVERTISEMENT "At present , the reorganisation exercise is pending approvals from Bursa Malaysia Securities Bhd for the listing of ABMB and the withdrawal of AFG's listing status from the Main Board. The exercise is expected to be completed in October this year," Oh told reporters after the annual general meeting and extraordinary general meeting here today.Meanwhile, moving forward to the Financial Year 2018 ending March 31, 2018 ( FY2018), Chief Executive Officer Joel Kornreich said the group anticipated mid single-digit loan growth and mid to higher single-digit revenue growth, as well as the strengthening its small and medium enterprise (SME) sector to a 14 per cent growth.He said for FY2017, the group total loan growth was at 1.5 per cent with SME loans growing about 9.3 per cent year-on-year."We believe that we will see a steady and strong loan growth in commercial and corporate segments, as well as the small and medium enterprise sector.ADVERTISEMENT "While in consumer segment, we expect it to be more mixed, a slow down in hire purchase portfolio, strong growth in personal loan growth, and towards the end of the year, will see a significant change of trajectory of mortgages," he said. Mortgages portfolio contracted last year, but with the Alliance One Account, one of its key driver, the company expected to originate about RM1 billion this year, and about RM7 billion by 2022, Kornreich said.
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For FY2017 the group recorded profit after tax of RM512.1 million with return on equity (ROE) remained in the top three in the industry at 10.5 per cent and despite a higher investment of RM90 million this year which would impact the ROE which it expects to remain relatively stable, he said.He said among investments in the offing would be on its newly launched "Alliance One Account' for which the group intended to ramp its sales force, as well as launching of a few new products, reorganising its branch networks and introducing its digital bank.Stay up-to-date by following Daily Express’s Telegram channel.
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Kornreich explained that the investment would be in the form of operating expenses whereby in total 50 per cent investment would be in the sales force, 20 per cent in technology and 30 per cent in marketing.For longer-term growth, the group views that despite being small, it is still sound and sustainable and with investment made it would be able to lift its ROE, hence merger and acquisition, this far is not in the pipeline, he added. – Bernama