Alliance Bank Malaysia Berhad has announced that its subsidiary Alliance Investment Bank Berhad has entered into a conditional business sale & purchase agreement with Phillip Futures Sdn Bhd for the sale of its stockbroking business.
Under the deal, the bank will also enter into a strategic stockbroking partnership arrangement with PhillipCapital which will allow its customers to gain access to regional trading platforms and other range of global investment products. The bank states that the excess capital from the sale of the stockbroking business will be re-deployed to accelerate growth in its consumer, SME and Islamic banking businesses.
Meanwhile, Alliance Investment Bank’s capital markets business will be transferred to the Bank’s other subsidiary, Alliance Islamic Bank Berhad. As a result, Alliance Islamic Bank will be one of the few local Islamic banks with in-house capabilities to serve business clients with comprehensive corporate and capital markets solutions. The Bank expects to conclude the corporate exercise in the first half of 2022.
Alliance Bank has indicated with regards to the sale price, for reference purposes the net asset value of the Stockbroking Business is RM205 million.
As part of its broader vision, Alliance Bank will use the proceeds and invest significantly in scaling up its SME business. “Our SME banking business has consistently outpaced the industry’s growth over the past 5 years. We aim to be among the top 4 banks in SME market share in Malaysia,” said Mr Joel Kornreich, Group Chief Executive Officer of Alliance Bank. “Our actions will be guided by the Alliance Way, which is our unique approach to address the needs of our customers. Our relationship managers take the time to truly understand our customers’ financial situation so that they can provide the most relevant solutions in a fast and simple manner. Our goal is to serve the business and personal needs of business owners and the needs of their stakeholders,” Mr Kornreich added
