GENEALOGY OF ALLIANCE BANk MALAYSIA BERHAD

272 Pages·2011·6.42 MB·English

A
l
l
i
a
n
c
e

F
i
n (6627-X)
a
n
c
i
a
l

G
r
o
u
p

B
e
r
h
a
d

(6627-X)
www.alliancegroup.com.my
2
0
1
1
ACHIEVING GROWTH
A
Alliance Financial Group Berhad (6627-X) N
N
3rd Floor, Menara Multi-Purpose U
A
Capital Square L
No. 8, Jalan Munshi Abdullah R 2011 ANNUAL REPORT
E
50100 Kuala Lumpur, Malaysia P
O
R
Tel : [phone] T
Fax : [phone]
Achieving Growth
The Group continues to chart new milestones amidst a recovering domestic
economic environment. We respond quickly to the emerging needs of
modern lifestyles yet stay true to our values consistently.
The Group continues to offer innovative products and services
complemented by personalised relationships to all our customers.
We remain competitive and focused on our long-term business strategies
and will continue to strengthen our business momentum by improving
productivity. We are also committed to ensuring strong risk management
practices, active liquidity management and a healthy capital position.
ACHIEVING GROWTH
THROUGH VISION AND
STRATEGY
ACHIEVING GROWTH
THROUGH CUSTOMER
FOCUS
ACHIEVING GROWTH
THROUGH PERFORMANCE
EXCELLENCE
Vision Mission
A leading integrated financial We will deliver excellent customer
solutions provider with regional experience through strategic
reach, delivering the best customer alliances and enhanced group
experience and creating long term synergy, employing best-in-class
shareholder value. technology and human capital.
Values
CARING CONVICTION RESILIENCE
Beyond just our business We believe in always We will stay focused and
objectives, we care about exceeding expectations, by relentlessly pursue our
people – their existence, having the courage to raise promise of excellence.
welfare, passions and the bar and challenging the Staying the course in good
dreams. status quo. times and hard times to
achieve our goals.
And we are committed to And we will take
treating people fairly and responsibility for our actions We will stay strong in the
compassionately through in this pursuit of success in face of new challenges by
open communication, mutual the marketplace. being flexible – continuously
respect and team spirit. adapting and improving.
CREATIVITY
INTEGRITY
We will constantly push the
boundaries of conventional We practise uncompromising
thinking to come up with integrity and ethics in all
innovative solutions. our dealings.
CONTENTS
3 Corporate Profile Accountability
4 Genealogy of
Alliance Bank Malaysia Berhad 66 Statement on Corporate Governance
6 Corporate Information 75 Corporate Responsibility
7 Corporate Structure 78 Audit Committee Report
8 Products and Services 82 Statement on Internal Control
12 Financial Highlights 83 Risk Management
Leadership Additional
Information
14 Directors
19 Directors of Major Subsidiaries
89 Additional Compliance Information
22 Senior Management
90 List of Properties
93 Directory
Perspectives
100 Analysis of Shareholdings
102 Substantial Shareholders
30 Statement by Chairman of
102 Directors’ Shareholdings
Alliance Financial Group Berhad
34 Statement by Chairman of
Alliance Bank Malaysia Berhad
40 Business and Operations Review
by Group Chief Executive Officer of
Alliance Bank Malaysia Berhad
56 Calendar of Significant Events
Financials Notice and Form
103 Financial Statements of 265 Notice of Annual General Meeting
Alliance Financial Group Berhad Form of Proxy
• Statement of Board of
Directors’ Responsibilities
• Directors’ Report
• Statement by Directors
• Statutory Declaration
• Independent Auditors’ Report
• Statement of Financial Position
• Statements of
Comprehensive Income
• Consolidated Statement of
Changes in Equity
• Statement of Changes in Equity
• Consolidated Statements of
Cash Flow
• Statements of Cash Flow
• Notes to the
Financial Statements
209 Abridged Financial Statements of
Alliance Bank Malaysia Berhad
229 Basel II Pillar 3 Disclosure
of Alliance Bank Malaysia Berhad
CORPORATE PROFILE
Alliance Financial Group Berhad (AFGB or the Company) was
incorporated in Malaysia on 7 April 1966 and was listed on the
Main Market of Bursa Malaysia Securities Berhad (Bursa Securities) on
6 July 1979. The Group is principally involved in the provision of financial
services through Alliance Bank Malaysia Berhad (ABMB).
ABMB, together with its subsidiaries, Alliance Investment Bank Berhad
(AIBB), Alliance Islamic Bank Berhad (AIS) and Alliance Investment
Management Berhad (AIMB) provide a wide range of financial products
and services in commercial banking, financing, investment banking,
stockbroking, Islamic banking, unit trust funds management, fund
management, investment advisory and other related financial services.
4 ALLIANCE FINANCIAL GROUP BERHAD (6627-X)
GENEALOGY OF
ALLIANCE BANk MALAYSIA BERHAD
1958 1986-1995
Banque de L’Indochine commenced operations in During this time, 16 branches were established
Malaya with its first branch in the Selangor Kwangtung nationwide.
Association Building, Jalan Pudu, Kuala Lumpur. This
branch was subsequently relocated to Jalan Raja Chulan,
Kuala Lumpur, in 1975.
1996
Malaysian French Bank Berhad changed its name to
1959
Multi-Purpose Bank Berhad.
Banque de L’Indochine opened a sub-branch at Jalan
Batu, Kuala Lumpur (now known as Jalan Tuanku Abdul
1998
Rahman).
As in February 1998, the Bank had a network of
34 branches nationwide, including Sabah and Sarawak.
1975
The name of the Bank was changed to Banque de
1999
L’Indochine et de Suez (Banque Indosuez). In the same
year, Banque Indosuez acquired a building in Jalan
Raja Chulan, Kuala Lumpur, to serve as its headquarters. Multi-Purpose Bank Berhad was selected to be one
of the anchor banks in the Malaysian government’s
bank consolidation effort. Multi-Purpose Bank Berhad
successfully anchored the merger with International Bank
1982
Malaysia Berhad, Sabah Bank Berhad, Sabah Finance
Berhad, Bolton Finance Berhad, Amanah Merchant Bank
Malaysian French Bank Berhad was incorporated to Berhad, and Bumiputra Merchant Bankers Berhad.
assume the banking business of the two local branches of
Banque Indosuez. The incorporation was the result of the
French government’s nationalisation of Banque Indosuez
2001
and also of the subsequent restructuring of the Bank’s
businesses in Malaysia to comply with local banking
regulations. Alliance Banking Group was founded on 19 January from
the successful merger of seven financial institutions. The
newly-merged entity’s name and logo were unveiled to
1985 the public for the first time as the Alliance Banking Group
comprising Alliance Bank Malaysia Berhad (ABMB),
Alliance Finance Berhad, Alliance Merchant Bank Berhad
The Bank established its “first” branch in Taman Maluri,
and Alliance Unit Trust Management Berhad.
Kuala Lumpur. In the same year, eight more branches
were opened throughout the country.
2011 ANNUAL REPORT 5
2004 2007
On 1 August, Alliance Finance Berhad merged with ABMB. In April, Alliance Unit Trust Management Berhad merged
Consequently, Hire Purchase is now offered at all Alliance with Alliance Capital Asset Management Berhad to form
Bank’s retail branches nationwide. Alliance Investment Management Berhad (AIMB).
In June, Alliance Islamic Bank Berhad (AIS) was
incorporated as a wholly-owned subsidiary of ABMB.
2005
In conjunction with the change of name of its holding
company from Malaysian Plantations Berhad to Alliance
On 1 January, Alliance Merchant Bank Berhad acquired
Financial Group Berhad on 31 August, Alliance Banking
100% equity interest in Kuala Lumpur City Securities
Group underwent a major rebranding exercise and was
(KLCS).
renamed Alliance Financial Group.
2006
2008
In August, Alliance Merchant Bank Berhad changed
AIS commenced its Islamic banking business on 1 April
its name to Alliance Investment Bank Berhad (AIBB). In
after assuming the entire Islamic banking business
December, KLCS merged with AIBB to offer a full suite of
portfolio of ABMB.
investment banking services.
Today
Alliance Financial Group, comprising ABMB, AIBB, Alliance Personal branches, Alliance Rakan branches,
AIS and AIMB, is now a dynamic, integrated financial Privilege Banking Centres, Islamic Banking Centres,
services group offering end-to-end financing solutions Business Centres, Investment Bank branches, Direct
through its Consumer Banking, SME Banking, Corporate Marketing offices and Unit Trust agent offices located
& Commercial Banking, Islamic Banking, Investment nationwide in a mix of rural and urban areas.
Banking and Stockbroking businesses, as well as Unit
With over five decades of proud history in contributing
Trust and Asset Management by providing products and
to the financial community in Malaysia with its
services that are suited for every customer at every
innovative and entrepreneurial business spirit through
stage of their life.
its principal subsidiaries, the Group aspires to be
It provides easy access throughout the country by Malaysia’s premier integrated financial services group
serving its broad base of customers via multi-pronged delivering the best customer experience and creating
delivery channels which include retail branches, long-term shareholder value.
6 ALLIANCE FINANCIAL GROUP BERHAD (6627-X)
CORPORATE
INFORMATION
DIRECTORS
Datuk Oh Chong Peng Megat Dziauddin bin Megat Mahmud
Chairman, Independent Non-Executive Director Independent Non-Executive Director
Dato’ Thomas Mun Lung Lee kung Beng Hong
Senior Independent Non-Executive Director Non-Independent Non-Executive Director
Tan Yuen Fah Ou Shian Waei (Appointed on 1.7.2010)
Independent Non-Executive Director Independent Non-Executive Director
Stephen Geh Sim Whye Sng Seow Wah (Appointed on 18.11.2010)
Independent Non-Executive Director Non-Independent Non-Executive Director
Phoon Siew Heng
Non-Independent Non-Executive Director
GROUP COMPANY SECRETARY AUDITORS
Lee Wei Yen (MAICSA 7001798) PricewaterhouseCoopers
Chartered Accountants
Level 10, 1 Sentral
REGISTERED OFFICE
Jalan Travers
Kuala Lumpur Sentral
3rd Floor, Menara Multi-Purpose
P.O. Box 10192
Capital Square
50706 Kuala Lumpur, Malaysia
No. 8, Jalan Munshi Abdullah
50100 Kuala Lumpur, Malaysia
PRINCIPAL BANkER
Tel : [phone]
Fax : [phone] Alliance Bank Malaysia Berhad
Website : www.alliancegroup.com.my
Email : [email protected]
BURSA MALAYSIA STOCk NAME/CODE
REGISTRAR AFG/2488
Shareworks Sdn Bhd
No. 10-1, Jalan Sri Hartamas 8 INTERNATIONAL SECURITIES
Sri Hartamas
IDENTIFICATION NUMBER (ISIN)
50480 Kuala Lumpur, Malaysia
MYL2488OO004
Tel : [phone]
Fax : [phone]
2011 ANNUAL REPORT 7
CORPORATE
STRUCTURE
as at 31 May 2011
100% 100%
Alliance Investment Alliance Research
Bank Berhad Sdn Bhd
100% 100%
Alliance Islamic AIBB Nominees
Bank Berhad (Tempatan) Sdn Bhd
100% 100%
Alliance Direct AIBB Nominees
Marketing Sdn Bhd (Asing) Sdn Bhd
100%
Alliance Bank
Malaysia Berhad 100%
AllianceGroup Nominees
(Tempatan) Sdn Bhd
100%
(6627-X)
AllianceGroup Nominees
(Asing) Sdn Bhd
70%
Alliance Investment
Management Berhad
100%
Alliance Trustee Berhad
This chart features the main operating companies and does not include inactive
companies and companies that are under members’ voluntary liquidation.
8 ALLIANCE FINANCIAL GROUP BERHAD (6627-X)
PRODUCTS
AND SERVICES
Alliance Bank Malaysia Berhad
Personal Banking Loans
• Alliance SaveLink Home Loan
Wealth Management • Alliance Conventional Home Loan
• Alliance SaveLink Interest Payment Option
Deposits • Alliance OD/FD Express
• AllianceSave Manjaku • Alliance SaveLink Commercial Property Loan
• AllianceSave Pendidikan • Alliance Conventional Commercial Property Loan
• Savings Account/Basic Savings Account • Alliance Hire Purchase
• Current Account/Basic Current Account
• Fixed Deposit
Cards
• AllianceSave
• Alliance Gold and Classic Credit Cards
• Alliance Senior Savers
• Alliance Platinum Credit Card
• Alliance FDGold
• IKEA Friends Credit Card
• Alliance Hybrid Account
• IKEA Friends Loyalty Payment Card
Wills and Trust Services • Alliance CPA Australia Gold Credit Card
• Alliance Legacy • Alliance CNI Gold Credit Card
• Alliance CNI Gold Payment Card
Structured Investment • Alliance Business Platinum Card
• Alliance Dual Currency Investment (DCI) • Alliance Chinese Independent School (CIS) Payment Card
• Alliance Gold-AUD Linked Structured Investment (GOALS) • Alliance Chinese Independent School (CIS) Credit Card
• Alliance You:nique Rates Credit Card
Unit Trust Investment
• Alliance You:nique Rewards Credit Card
• Equity Funds
• Alliance You:nique Rebates Credit Card
• Fixed Income-Bond Funds
• Alliance You:nique Prepaid Card
• Money Market Funds
• Alliance Allianz Insurance Gold & Platinum Credit Cards
Share Trading and Margin Facilities • Tiger Football Club Credit Card
• Tiger Football Club Prepaid Card
• Alliance Share Margin Financing
• Alliance Standard Debit MasterCard
• Alliance Share Trading
• Alliance Platinum Debit MasterCard
• ESOS/IPO/Placement Financing
• Alliance Premium Debit MasterCard
Bancassurance
• Bijak Malaysia Corporate and Commercial Banking
• Alliance CashBack Protector II
• Alliance Cash Plus
• Alliance Cash Maximiser • Credit Facilities
• Alliance MaxWealth – Working Capital Financing
• Alliance Motor Insurance – Term Loan
• Alliance Travel Protector – Bridging Loan
• Alliance Premier Protector – Syndicated Loan
• Alliance Senior Protector – Business Premises Financing
• Alliance Home Protector – Supplier Financing
• Smart Protector Enhanced (Telemarketing) – Business Platinum Card
• Alliance Mortgage Reducing Term Assurance – Foreign Currency Loan
• Alliance MyRetirement RP • Trade Facilities
• Alliance MyRetirement SP – Letter of Credits
• Alliance MyLifestyle – Trust Receipts
• Alliance MyJunior – Bankers Acceptances
• Alliance Income Saver (May 2011) – Export Bills Purchased/Discounting
• Alliance i-Vantage (May 2011) – Export Credit Refinancing
• Alliance i-Medic (May 2011) – Export LC Negotiation
• Alliance Family Takaful Investment (May 2011) – Collection Bills
• Alliance Safe Assure – Shipping Guarantees
• Alliance Passenger Assure – Export LC Advising/Confirmation
• Alliance Mortgage Reducing Term Takaful – Bank Guarantees (BGs)
• Alliance Credit Term Takaful (May 2011) – Promissory Notes
• Alliance 100% Hospital Income Plan (Telemarketing) – Foreign Currency Trade Loan
• Alliance My Protection (Telemarketing) • Foreign Exchange
• Cash Back Personal Accident (Telemarketing) • Cash Management
• Interest Rate Swap
• Bancassurance