Alliance Financial Group aims to achieve a 16 per cent return on equity (ROE) in line with the industry's benchmark, said its chief executive officer, Sng Seow Wah.
"The average industry's ROE target is between 14 and 16 per cent, but be mindful that banks have a different interest and competitive edge.
"Today we are at 11 per cent. The target 16 per cent may take 12 to 18 months or beyond but certainly that's what we are aiming for," he told reporters after the group's annual general meeting today.
Sng, who joined the group on July 5, said he did not want to make assumptions on its strategy.
"We have a good business momentum. I don't want to make assumptions at this stage as to where we should be going or how should we change or not.
"I need more time. I will be observing in the next 90 days or so, to quickly assess our key strengths and areas, he said.
On whether the group needed a big change, he said: "Absolutely not, the strategy is good."
He said there were a lot of opportunities in the small and medium enterprise (SME) business, particularly the lower end in terms of transaction banking and to some extent low financing.
Sng said although the commercial and SME banking would be a large growth contributer to the group's earnings, the group hoped to balance contributions with other areas.
Going forward, he said, the group aimed to deliver sustainable underlying growth in the coming years by leveraging on its strong asset base and continuing its transformation journey.
"We approach the financial year with a renewed but cautious optimism. We are well-positioned to take advantage of the renewed outlook for the SME sector," he said.
For financial year-ended March 31, 2010, Alliance's pre-tax profit rose by 35 per cent to RM408.9 million from RM303.3 million in the same period last year. -- BERNAMA
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