Alliance Financial, the Malaysian financial services group, posted a 4.8 per cent rise in after-tax net profit for the first half of 2012 to MYR266.5 million ($87 million), compared to the year-earlier period, on stronger equity returns and loan growth.

Alliance, whose businesses include Alliance Bank Malaysia, Alliance Investment Bank, Alliance Investment Management and Alliance Islamic Bank, saw return on equity after tax figure at 13.7 per cent, with the non-interest income ratio increasing to 27.2 per cent from 25.6 per cent year-on-year. Net loans also went up 13.6 per cent to MYR26.1 billion, driven mostly by expansion in its consumer and business banking loan activity.

The group's loan-to-deposit ratio increased from 77.4 per cent in September 2011 to 82.8 per cent, attributable to improved asset liability management efforts. Customer deposits expanded 5.7 per cent year-on-year to MYR32.1 billion.

The firm says it will continue to focus on expanding treasury sales, transaction banking and wealth management services to deliver a strong performance for the financial year to 31 March 2013.