Kuala Lumpur, 18 February 2008 - The Alliance Financial Group Berhad registered a pre-tax profit increase of 95% to RM138.3 million for the third quarter ended 31 December 2007, compared to RM71.0 million in the corresponding quarter last year.

The Group registered a pre-tax profit of RM393.7 million for the nine months ended 31 December 2007, an increase of RM309.1 million, compared to RM84.6million in the corresponding period last year.

The improvements were primarily due to higher operating profit contributed by higher net income, lower other operating expenses and better recoveries.

The Group's net income grew by 11.1% to RM744.8 million on improved interest income mainly from loans growth in Consumer banking, Commercial/SME banking and higher operating income.

Other operating expenses at RM335.5 million were 9.5%, or RM35.2 million, lower than the corresponding period in FY2006/2007. This is mainly due to reversal of certain provision for expenses, particularly marketing expenses and personnel related expenses with the introduction of the Employees' Share Scheme.

At the same time, the Group's asset quality continue to improve with net non-performing loans (NPLs) ratio declining from 4.4% as at 30 September 2007 to 3.7% as at 31 December 2007 (31 March 2007: 5.5%).

Gross NPLs provisioning coverage further improved to 77% compared to 72% as at 30 September 2007 (31 March 2007: 67%).

Gross gross loans and advances increased by 9.8% to RM15.9 billion compared to 31 March 2007. Consumer and Commercial loans registered 16.6% and 14.3%, respectively during the nine months. The Group's risk-weighted capital ratio remained strong at 16.4%.

Barring unforeseen circumstances, the Group expects to record very satisfactory performance for its financial year ending 31 March 2008.