alliance bank malaysia berhad alliance islamic bank berhad

281 Pages·2016·4.2 MB·English

CORPORATE PROFILE
Alliance Financial Group Berhad was incorporated in Malaysia on
7 April 1966 and was listed on the Main Market of Bursa Malaysia
Securities Berhad on 6 July 1979. The Group is principally involved
in the provision of banking and financial services through Alliance
Bank Malaysia Berhad.
Alliance Bank Malaysia Berhad, together with its subsidiaries,
Alliance Investment Bank Berhad and Alliance Islamic Bank
Berhad, provide a wide range of financial products and services
in commercial banking, financing, investment banking, investment
advisory, stockbroking, Islamic banking and other related financial
services.
CONTENTS
CORPORATE SECTION FINANCIAL SECTION
Corporate Profile 91 Financial Statements
2 History of Alliance Financial Group •฀฀Statement฀of฀Board฀of฀Directors’
4 Corporate Information Responsibilities
5 Corporate Structure •฀฀Directors’฀Report
6 Products and Services •฀฀Statement฀by฀Directors
10 Financial Highlights •฀฀Statutory฀Declaration
•฀฀Independent฀Auditors’฀Report
LEADERSHIP •฀฀Statements฀of฀Financial฀Position
•฀฀Statements฀of฀Comprehensive฀
12 Directors
Income
25 Chief Executive Officer
•฀฀Consolidated฀Statements฀of
26 Key Senior Management
Changes in Equity
•฀฀Statement฀of฀Changes฀in฀Equity
PERSPECTIVES
•฀฀Consolidated฀Statements฀of฀
34 Statement by Chairman of Cash Flows
Alliance Financial Group Berhad •฀฀Statement฀of฀Cash฀Flows
36 Statement by Chairman of •฀฀Notes฀to฀the฀Financial฀Statements
Alliance Bank Malaysia Berhad 215 Basel II Pillar 3 Report Disclosure
40 Business and Operations Review by
Chief Executive Officer of
Alliance Financial Group Berhad
ADDITIONAL INFORMATION
50 Awards and Recognition
52 Calendar of Significant Events 262 List of Properties
60 Media Highlights 265 Directory
271 Analysis of Shareholdings
ACCOUNTABILITY
273 Substantial Shareholders
64 Statement on Corporate Governance 273฀฀ Directors’฀Shareholdings
72 Corporate Responsibility
NOTICE AND FORM
77 Audit Committee Report
81 Statement on Risk Management and 274 Notice of Annual General Meeting
Internal Control Form of Proxy
82 Risk Management
90 Additional Compliance Information
View our report online
Our Annual Report, Accounts and other information about Alliance
Financial Group Berhad can be found at www.alliancefg.com
2016 Annual Report | Alliance Financial Group Berhad (6627-X)
HISTORY OF
ALLIANCE FINANCIAL GROUP
1958 1959 1975 1982
Banque฀de฀L’Indochine฀ Banque฀de฀L’Indochine฀opened฀ The name of the Bank was Malaysian French Bank Berhad
commenced operations in a sub-branch at Jalan Batu, changed to Banque de was incorporated to assume
Malaya with its first branch Kuala Lumpur (now known as L’Indochine฀et฀de฀Suez the banking business of the
in the Selangor Kwangtung Jalan Tunku Abdul Rahman). (Banque฀Indosuez).฀In฀the฀same฀ two local branches of Banque
Association Building, Jalan year,฀Banque฀Indosuez฀acquired฀ Indosuez.฀The฀incorporation฀
Pudu, Kuala Lumpur. This a building in Jalan Raja Chulan, was the result of the French
branch was subsequently Kuala Lumpur, to serve as its government’s฀nationalisation฀
relocated to Jalan Raja Chulan, headquarters. of฀Banque฀Indosuez฀and฀also฀of฀
Kuala Lumpur, in 1975. the subsequent restructuring
of฀the฀Bank’s฀businesses฀in฀
Malaysia to comply with local
banking regulations.
1999 2001 2004 2005
Multi-Purpose Bank Berhad The Alliance Banking Group was On 1 August, Alliance Finance On 1 January, Alliance Merchant
was selected to be one of the established on 19 January with Berhad merged with Alliance Bank Berhad acquired 100%
anchor banks in the Malaysian the successful merger of seven Bank. Consequently, Hire equity interest in Kuala Lumpur
government’s฀bank฀consolidation฀ financial institutions. The newly- Purchase is now offered at all City Securities (KLCS).
initiative. Multi-Purpose Bank merged฀entity’s฀name฀and฀logo฀ Alliance฀Bank’s฀retail฀branches฀
Berhad successfully anchored were unveiled to the public for nationwide.
the merger with International the first time as the Alliance
Bank Malaysia Berhad, Sabah Banking Group comprising
Bank Berhad, Sabah Finance Alliance Bank Malaysia Berhad
Berhad, Bolton Finance Berhad, (Alliance Bank), Alliance Finance
Amanah Merchant Bank Berhad, Berhad, Alliance Merchant Bank
and Bumiputra Merchant Berhad and Alliance Unit Trust
Bankers Berhad. Management Berhad.
2011 2013 2014
In January, Alliance Bank and In March, Alliance Bank In June, Alliance Bank entered In May, AIBB acquired a
AIA Berhad entered into a joint completed the sale of its into a 10-year bancassurance 51% equity stake in HwangDBS
venture to form AIA AFG Takaful 30% equity stake in AIA AFG partnership with Manulife Vickers Research Sdn Bhd
Berhad which offers a range of Takaful Berhad. Insurance Berhad. With this (HDBSV). HDBSV was later
Takaful savings, protection and partnership, Alliance Bank re-named AllianceDBS Research
In April, Alliance Bank
investment products. is now able to provide a Sdn Bhd.
completed the sale of its
comprehensive bancassurance
Under the terms of agreement, 70% shareholding in AIMB to
product suite to its customers.
Alliance Bank owns 30% equity KAF-Seagroatt Campbell
stake in AIA AFG Takaful Berhad. Berhad. AIMB ceased to be
part of the Group following the
completion of the sale.
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2016 Annual Report | Alliance Financial Group Berhad (6627-X)
1985 1986-95 1996 1998
The Bank established its During this time, 16 branches Malaysian French Bank Berhad By February 1998, the Bank
“first” branch in Taman Maluri, were established nationwide. changed its name to had a network of 34 branches
Kuala Lumpur. In the same Multi-Purpose Bank Berhad. nationwide, including Sabah
year, eight more branches were and Sarawak.
opened throughout the country.
2006 2007 2008
In August, Alliance Merchant In April, Alliance Unit Trust In conjunction with the change AIS commenced its Islamic
Bank Berhad changed its name Management Berhad merged of name of its holding company banking business on 1 April
to Alliance Investment Bank with Alliance Capital Asset from Malaysian Plantations after assuming the entire
Berhad (AIBB). In December, Management Berhad to Berhad to Alliance Financial Islamic banking business
KLCS merged with AIBB to form Alliance Investment Group Berhad on 31 August, portfolio of Alliance Bank.
offer a full suite of investment Management Berhad (AIMB). Alliance Banking Group
banking services. Under the terms of the underwent a major rebranding
agreement, Alliance Bank owns exercise and was renamed
70% equity stake in AIMB. In Alliance Financial Group
June, Alliance Islamic Bank (the Group).
Berhad (AIS) was incorporated
as a wholly-owned subsidiary of
Alliance Bank.
The Alliance Financial Group, comprising Alliance Bank Malaysia Berhad,
Alliance Investment Bank Berhad and Alliance Islamic Bank Berhad is
a dynamic, integrated financial services group offering banking and
financial services through its consumer banking, business banking,
Islamic banking, investment banking and stockbroking businesses.
It provides easy access to its broad base of customers throughout the country via multi delivery
channels which include retail branches, Privilege Banking Centres, Islamic Banking Centres,
Business Centres, Investment Bank branches and direct marketing offices located nationwide Today
as well as mobile and Internet banking.
With over five decades of proud history in contributing to the financial community in Malaysia
with its innovative and entrepreneurial business spirit through its principal subsidiaries,
the Group is committed to delivering the best customer experience and creating long-term
shareholder value.
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2016 Annual Report | Alliance Financial Group Berhad (6627-X)
CORPORATE
INFORMATION
DIRECTORS REGISTRAR
Datuk Oh Chong Peng Shareworks Sdn Bhd
Chairman, Independent Non-Executive Director No. 2-1, Jalan Sri Hartamas 8
Sri Hartamas
Stephen Geh Sim Whye 50480 Kuala Lumpur, Malaysia
Independent Non-Executive Director Tel : [phone]
Fax : [phone]
Kung Beng Hong
Non-Independent Non-Executive Director
Ou Shian Waei
AUDITORS
Independent Non-Executive Director
Lee Ah Boon
PricewaterhouseCoopers
Non-Independent Non-Executive Director Chartered Accountants
Level 10, 1 Sentral
Jalan Rakyat
Kuala Lumpur Sentral
50470 Kuala Lumpur
CHIEF EXECUTIVE OFFICER
Malaysia
Joel Kornreich
PRINCIPAL BANKER
GROUP COMPANY SECRETARY
Alliance Bank Malaysia Berhad
Lee Wei Yen (MAICSA 7001798)
BURSA MALAYSIA
STOCK NAME/CODE
REGISTERED OFFICE
AFG/2488
3rd Floor, Menara Multi-Purpose
Capital Square
No. 8, Jalan Munshi Abdullah
50100 Kuala Lumpur, Malaysia INTERNATIONAL SECURITIES
Tel : [phone] IDENTIFICATION NUMBER (ISIN)
Fax : [phone]
Website : www.alliancefg.com
MYL2488OO004
Email : [email protected]
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2016 Annual Report | Alliance Financial Group Berhad (6627-X)
CORPORATE
STRUCTURE
as at 31 May 2016
100%
Alliance Bank Malaysia Berhad
100%
Alliance Investment Bank Berhad
51%
AllianceDBS Research
Sdn Bhd
100%
Alliance Islamic Bank Berhad
100%
Alliance Direct Marketing
Sdn Bhd
100%
AllianceGroup Nominees
(Tempatan) Sdn Bhd
100%
AllianceGroup Nominees
(Asing) Sdn Bhd
This chart features the main operating companies and does not include inactive
companies฀and฀companies฀that฀are฀under฀members’฀voluntary฀liquidation.
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2016 Annual Report | Alliance Financial Group Berhad (6627-X)
PRODUCTS
AND SERVICES
ALLIANCE BANK MALAYSIA BERHAD
PERSONAL BANKING
Wealth Management Bancassurance
•฀ Alliance฀Travel฀Protector
Deposits •฀ Alliance฀Premier฀Protector
•฀ Savings฀Account/ •฀ Alliance฀Senior฀Protector
Basic Savings Account •฀ Safe฀Assure
•฀ AllianceSave฀Pendidikan •฀ Home฀Assure
•฀ Alliance฀Buddy •฀ Mortgage฀Reducing฀Term฀Assurance
•฀ Alliance฀Senior฀Savers •฀ Mortgage฀Level฀Term฀Assurance
•฀ Mortgage฀Reducing฀Term฀Takaful
•฀ Alliance฀My฀eSaving฀Account
•฀ Elite฀Wealth฀Saver฀Plus
•฀ Current฀Account/
•฀ Elite฀Cash฀Saver
Basic Current Account
•฀ Elite฀Smart฀Life
•฀ AllianceSave
•฀ Elite฀Smart฀Kids
•฀ Alliance฀Hybrid฀Account
•฀ Fire/House฀Owner฀(Conventional฀&฀Takaful)
•฀ Fixed฀Deposit
•฀ Smart฀Protector
•฀ Alliance฀FDGold
•฀ Motor฀Insurance฀(Conventional฀&฀Takaful)
•฀ eFD฀(via฀allianceonline)
•฀ Care฀Assure
•฀ Alliance฀XChange฀Account฀(via฀allianceonline)
•฀ Business฀Reducing฀Term฀Takaful
•฀ Alliance฀XChange฀FD฀(via฀allianceonline)
•฀ Elite฀Income฀Builder
•฀ allianceonline฀Banking
•฀ Elite฀Credit฀Shield
•฀ Elite฀Global฀Annuity฀
Unit Trust
•฀ Money฀Market฀Funds Conventional Loans
•฀ Bond฀Funds
•฀ Balanced฀Funds •฀ Alliance฀Conventional฀Home฀Loan
•฀ Equity฀Funds฀ •฀ Alliance฀Conventional฀Commercial฀Property฀Loan
•฀ Alliance฀Home฀Complete฀Personal฀Loan
Retail Bond •฀ Alliance฀Home฀Complete฀Plus฀–฀Solar฀Panel฀Financing
•฀ MYR-denominated฀Retail฀Bond •฀ Alliance฀Conventional฀Oil฀Palm฀Plantation฀Financing
•฀ Foreign฀Currency฀Retail฀Bond฀ •฀ Alliance฀CashFirst฀Personal฀Loan฀
(available in all major currencies) •฀ Alliance฀Hire฀Purchase
Structured Investment Cards
•฀ Interest-rate฀Linked฀Structured฀Investment฀
•฀ Equity฀Linked฀Structured฀Investment฀ Credit Cards
•฀ Equity฀Linked฀Convertible฀Structured฀Investment฀ •฀ Alliance฀Visa฀Infinite฀Credit฀Card
•฀ Dual฀Currency฀Investment฀ •฀ Alliance฀Platinum฀Credit฀Card
•฀ Alliance฀Gold฀and฀Classic฀Credit฀Cards
Share Trading & Investment Lending •฀ Alliance฀You:nique฀Rates฀Credit฀Card
•฀ Alliance฀Share฀Margin฀Financing •฀ Alliance฀You:nique฀Rewards฀Credit฀Card
− Margin + Trading 2-in-1 Account •฀ Alliance฀You:nique฀Rebates฀Credit฀Card
− External Margin Account •฀ Alliance฀Basic฀Credit฀Card฀
− Foreign Share Margin Financing •฀ Alliance฀Allianz฀Insurance฀Gold฀&฀Platinum฀Credit฀Cards
•฀ Alliance฀Share฀Trading •฀ Alliance฀Chinese฀Independent฀School฀(CIS)฀Credit฀Card
− Cash Trading Account •฀ Alliance฀CNI฀Gold฀Credit฀Card
− Collaterised Trading Account •฀ Alliance฀CPA฀Australia฀Gold฀Credit฀Card
− T+7 Trading Account •฀ Alliance฀Business฀Platinum฀Credit฀Card฀
•฀ ESOS/IPO฀Placement฀Financing •฀ Alliance฀Visa฀Infinite฀Business฀Credit฀Card฀
•฀ Portfolio฀Lending
Debit Cards
•฀ Dedicated฀Omni-Channels฀to฀Serve฀
•฀ Alliance฀Hybrid฀Standard฀Debit฀Card
Alliance Bank Customers
•฀ Alliance฀Hybrid฀AP฀Platinum฀Debit฀Card
−฀ Call฀N฀Trade฀through฀Alliance฀Bank’s฀Share฀Trading฀
•฀ Alliance฀Hybrid฀PB฀Platinum฀Debit฀Card
Centre (STC) via Account Relationship Manager
•฀ Alliance฀My฀eSaving฀Debit฀Card
− Internet Trading via allianceonline Stockbanking
•฀ Alliance฀EcoWorld฀Debit฀Card
− Mobile Trading via Alliance iStock Application
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2016 Annual Report | Alliance Financial Group Berhad (6627-X)
BUSINESS BANKING
SME Corporate฀&฀Commercial฀
•฀ Credit฀Facilities •฀ Credit฀Facilities
− Working Capital Financing − Working Capital Financing
− Equipment Financing − Term Loan
− Business Premises Financing − Bridging Loan
− Schemes promoted by CGC/BNM/Government − Syndicated Loan
− Foreign Exchange
− Business Premises Financing
− SME Express Cash
− Supplier Financing
•฀ Trade฀Facilities
− Business Platinum Card
− Letter of Credits
− Foreign Currency Loan
− Trust Receipts
− Visa Infinite Business Credit Card
− Foreign Currency Trade Loan
•฀ Trade฀Facilities
− Bankers Acceptances
− Letter of Credits
− Export Bills Purchased/Discounting
− Trust Receipts
− Export Credit Refinancing
− Export LC Negotiation − Foreign Currency Trade Loan
− Collection Bills − Bankers Acceptances
− Shipping Guarantees − Export Bills Purchased/Discounting
− Export LC Advising/Confirmation − Export Credit Refinancing
− Bank Guarantees (BGs) − Export LC Negotiation
− Promissory Notes − Collection Bills
− Supplier Credit Financing − Shipping Guarantees
•฀ Bancassurance − Export LC Advising/Confirmation
− Commercial Line General Insurance − Bank Guarantees (BGs)
− Keyman Credit-Life Insurance − Promissory Notes
−฀ Alliance฀Business฀Shield/Biz฀Assure − Foreign Currency Trade Loan
•฀ Business฀Credit฀Card •฀ Foreign฀Exchange
− MyBusiness Platinum Credit Card
•฀ Cash฀Management
− Business Platinum Credit Card
− Account Management
− Visa Infinite Business Credit Card
− Business Current Account
•฀ Cash฀Management
− Business Fixed Deposit
− Account Management
− Business Foreign Currency Current Account
− Business Current Account
− Business Foreign Currency Fixed Deposit
− Business Fixed Deposit
− Business Internet Banking
− Business Foreign Currency Current Account
− Collection Management
− Business Foreign Currency Fixed Deposit
− Payee Corporation Service
−฀ Biz-Xpress฀Card:฀Deposit฀cum฀Withdrawal฀function฀
via Self-Service Terminals (ATM, CDM and CES) − Auto Debit Service
− Collection Management − Bulk Cheque Collection Service
− Payee Corporation Service − Cash in Transit
− Auto Debit Service − Cash Concentration Solution
− iBayar Facility −฀ Biz-Xpress฀Card:฀Deposit฀cum฀Withdrawal฀function฀
− Bulk Cheque Collection Service via Self-Service Terminals (ATM, CDM and CES)
− Cash in Transit − Liquidity Management
− Liquidity Management − Auto Sweeping Service
− Auto Sweeping Service − Business Rewards Services
− Bounce Cheque Protection Service − Payment Management
− Business Rewards Services − Prepaid Reload
− Payment Management
− Payroll (Salary/EPF/SOCSO/Monthly Contribution/
− Prepaid Reload
PCB-LHDN Payment)
− Payroll (Salary/EPF/SOCSO/Monthly Contribution/
− Bulk Payment
PCB-LHDN Payment)
− Bulk Payment with Remittance Advice
− Bulk Payment
− Remittances (CO/DD/FTT/FDD/IBG/RENTAS)
− Bulk Payment with Remittance Advice
− Fund Transfer (Own account transfer/Group
− Remittances (CO/DD/FTT/FDD/IBG/RENTAS)
account transfer/Designated 3rd Party Transfer)
− Fund Transfer (Own account transfer/Group
− Bills Payment
account transfer/Designated 3rd Party Transfer)
− Bills Payment −฀ BizSmart฀Online฀Banking
−฀ BizSmart฀Online฀Banking − Interest Rate Swap
− Bancassurance
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2016 Annual Report | Alliance Financial Group Berhad (6627-X)
Products฀and฀Services฀(cont’d)
ALLIANCE BANK MALAYSIA BERHAD
FINANCIAL MARKETS
•฀ Foreign฀Exchange฀Transactions
•฀ Hedging฀Solution
− Currency Options
− Interest Rate Swap
− Cross-currency Swap
•฀ Structured฀Investments
•฀ Money฀Market฀Deposit
•฀ Money฀Market฀Deposit฀–฀Islamic
•฀ Negotiable฀Instrument฀of฀Deposit
•฀ Negotiable฀Islamic฀Deposit฀Certificate
•฀ Banker฀Acceptances
•฀ Islamic฀Acceptance฀of฀Bills
ALLIANCE ISLAMIC BANK BERHAD
Deposits Trade Financing and Services
•฀ Basic฀Savings฀Account-i •฀ Bank฀Guarantee-i฀
•฀ Basic฀Current฀Account-i •฀ Shipping฀Guarantee-i
•฀ Savings฀Account-i •฀ Letter฀of฀Credit-i
•฀ Current฀Account-i •฀ Murabahah฀Trust฀Receipt-i
•฀ Alliance฀My฀eSaving฀Account-i •฀ Murabahah฀Working฀Capital฀Financing-i
•฀ Junior฀Smart฀Saver-i •฀ Accepted฀Bills-i
•฀ Alliance฀Term฀Deposit-i •฀ Export฀Credit฀Refinancing-i฀
•฀ Junior฀Smart฀Term฀Deposit-i (Pre-shipment/Post-shipment)
•฀ Alliance฀Hybrid฀Account-i •฀ Inward฀Bills฀for฀Collection/Negotiation฀
•฀ eATD฀(via฀allianceonline) •฀ Export฀LC฀(Advising/Confirmation/Transferring)
•฀ allianceonline฀Banking •฀ Export฀Bills฀for฀Collection
•฀ Elite฀Account-i •฀ Export฀Bills฀Purchased/Discounted
•฀ Export฀Bills฀Negotiated฀
Consumer Financing
•฀ i-Wish฀Home฀Financing-i Cards
•฀ Home฀Complete-i •฀ Alliance฀Hybrid฀Standard฀Debit฀Card-i
•฀ Oil฀Palm฀Plantation฀Financing-i฀ •฀ Alliance฀Hybrid฀AP฀Platinum฀Debit฀Card-i
•฀ Cashline฀Facility-i •฀ Alliance฀Hybrid฀PB฀Platinum฀Debit฀Card-i
•฀ CashVantage฀Financing-i •฀ Alliance฀My฀eSaving฀Debit฀Card-i
•฀ Pension฀Financing-i •฀ Alliance฀Junior฀Debit฀Card-i
•฀ Alliance฀Hire฀Purchase-i
•฀ Bai’฀Bithaman฀Ajil฀Home฀Financing-i฀ Unit Trust
•฀ Alliance฀Home฀Financing-i฀ •฀ Islamic฀Money฀Market฀Funds฀
•฀ Islamic฀Bond฀Funds
Business Financing •฀ Islamic฀Balanced฀Funds
•฀ Revolving฀Credit฀Facility-i •฀ Islamic฀Equity฀Funds
•฀ Cashline฀Facility-i
•฀ Business฀Premises฀Term฀Financing-i Financial Markets
•฀ Industrial฀Hire฀Purchase-i •฀ IPRS-Murabahah-i
•฀ Term฀Financing-i •฀ Money฀Market฀Deposit-i
•฀ Contract฀Financing-i •฀ Negotiable฀Islamic฀Deposits฀Certificate
•฀ Project฀Financing-i •฀ Accepted฀Bills-i฀
•฀ Leasing-i
•฀ Schemes฀promoted฀by฀CGC/BNM/SME฀Corp/Government
•฀ SME฀A-Flex฀Premium-i
•฀ SME฀A-Flex฀(Plus฀&฀Premium-i)
•฀ Floating฀Rate฀Term฀Financing-i฀
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