ALLIANCE POSTS PRE-TAX PROFIT OF RM163.2 MILLION

Kuala Lumpur, 28 May 2007 - The Alliance Banking Group (ABG) achieved a pre-tax profit of RM163.2 million for the 12 months ended 31 March 2007, which reflects 158.6% increase over last year. The improvement in pre-tax profit was primarily due to higher income and lower loan loss provisions and impairment loss, which resulted from better recoveries. The Group's net income grew 20.9% or RM161.1 million for the 12 months, compared to the same period last year. This is attributed mainly to improved interest margin.

Bridget Lai, Group Chief Executive Officer of Alliance Banking Group said, "The intensive re-engineering of our business over the past 18 months has put Alliance Banking Group on firmer footing. With a strategically sound business platform in place, the Group has gained good momentum to show positive financial results in the last 12 months FY2006/7."

IMPROVING ASSET QUALITY
Asset quality has improved with net Non Performing Loans (NPLs) ratio improving from 9.5% as at 31 March 2006 to 5.6% as at 31 March 2007. Gross NPL ratio also improved from 14.6% to 10.9%. Loan loss coverage further improved to 67.3% compared to 48.5% as at 31 March 2006. This aligns the Group's loan impairment standards with best practices and is closer to Financial Reporting Standard (FRS) 139 – Financial Instruments : Recognition and Measurement requirement. The Group's risk-weighted capital ratio remained strong at 16.6%.

STRINGENT PROVISIONING
Lai added: "As part of our long-term strategy to improve asset quality, the Group had, during the year, tightened its specific provisioning methodology and changed its basis for NPLs at 3 months in arrears instead of 6 months previously. In addition, 100 per cent provisioning was made for NPLs that were more than 3 months in arrears rather than on a time basis."

LOANS ON GROWTH TRAJECTORY
Strong sales growth, which is attributed to aggressive sales and distribution strategies have caused an uptrend in the Group's acquisition of new loans. During the year the Group saw increased momentum in loans growth in targeted segments with Consumer loans growing 15% year-on-year (y-o-y) and Commercial loans growing 7% y-o-y. Consumer loans growth was buoyed by a good take up of personal loans as well as an increase in credit cards loans of 57% and mortgage loans of 18% compared to the corresponding period last year.

STRENGTHENING CAPABILITIES IN TECHNOLOGY
Recognising that Information Systems is one of the key drivers of business growth and operational excellence, ABG made significant investments during the financial year to enhance its IT infrastructure. During the year, new business systems and infrastructure such as Call Centre, Telesales centre, Collection centre, credit card scorecard, Datawarehouse and online share margin and share trading services were launched to provide greater reach to our customers.

STRATEGIC FOCUS
Commented Lai: "ABG aims to be a leading integrated financial solutions provider with regional reach. We will continue to leverage on the regional presence and expertise of our major shareholder to enhance our network and product proposition as well as capitalize on the existing strength of our SME and consumer market segments.

Barring unforeseen circumstances, ABG expect a good year ahead as it reaps the benefits of its new business models and capabilities.

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About Alliance Banking Group

Alliance Banking Group is a dynamic, integrated financial services group offering end-to-end financing solutions through it consumer banking, commercial banking, wholesale banking, Islamic banking, investment banking and stock broking businesses as well as unit trust and asset management, providing products and services that are suited for every customer at every stage of their life.

The Group has had five decades of proud history in contributing to the financial community in Malaysia with its innovative and entrepreneurial business spirit. It provides easy access throughout the country serving its broad base of customers via multi-pronged delivery channels including 79 retail branches, 10 Privilege Banking Centres, 19 Hire Purchase hubs, 23 Business Centres, 12 investment bank branches, 8 direct marketing offices and 3 unit trust agent offices located nationwide in a mix of rural and urban areas.

Through strategic partnerships, the Alliance Banking Group is also able to offer customers to regional and global platforms.

The Group's aspiration is to be Malaysia's premier integrated financial services group delivering the best customer experience and creating long term shareholder value. Strategic alliances, enhanced group synergy, excellent technology and human capital will be the key to creating long term value for all stakeholders.

Alliance Bank is wholly-owned subsidiary of Malaysian Plantations Berhad.