By BERNAMA
Alliance Financial Bhd (AFG’s) fourth quarter financial year 2013 results were lifted by a RM23 million gain from the disposal of its 30% stake in AIA AFG Takaful to American International Assurance Bhd, says RHB Research Institute Sdn Bhd.
The research house said stripping this out, full-year net profit would have been in line with its forecast and one per cent below consensus estimates.
It said excluding the abovementioned gain from disposal, fourth quarter financial year 2013 operating income rose four per cent quarter-on-quarter and 6% year-on-year, mainly on the back of healthy net interest income growth with loan growth robust and net interest margin staying relatively resilient.
However, it said, pre-impairment operating profit was down 4% quarter-on-quarter, due to cost pressure mainly from higher personnel costs.
RHB Research said overall, excluding the divestment gain above, fourth quarter financial year 2013 net profit would have dropped 13% quarter-on-quarter, due to the higher overheads and loan impairment allowance while year-on-year net profit would have been down 6%, mainly due to a RM10 million writeback in impairment on financial assets in fourth quarter financial year 2012.
The research house maintains its “neutral” call with a raised fair value of RM5.15, following a roll forward in valuation to 2014.
– BERNAMA
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