Kuala Lumpur, 2 July 2022 – Following the announcement made in December 2021 on the conditional business sale & purchase agreement of its stockbroking business, Alliance Bank Malaysia Berhad (“Alliance Bank” or the “Bank”) announced that its subsidiary, Alliance Investment Bank Berhad (“AIBB”), has received the Vesting Order from the High Court of Malaya to transfer the business to Phillip Capital Sdn Bhd (formerly known as Phillip Futures Sdn Bhd) (“Phillip Capital”) with effect from 30 July 2022.
Phillip Capital had recently announced its name change in line with this transfer to reflect the company’s business expansion to include Stocks and Exchange Traded Funds (“ETFs”) in its suite of product offerings beyond derivatives like Futures, Options and Contracts for Difference (“CFDs”). This is another step by Phillip Capital towards providing a more comprehensive investment platform to investors as they become more sophisticated over time, and markets of different asset classes evolve to be more interrelated.
“During this transfer, customers can be assured of seamless and uninterrupted service from their existing dealers and remisiers,” said Mr Joel Kornreich, Group Chief Executive Officer of Alliance Bank, and Mr Andy Lim Say Kiat, Group Managing Director of Phillip Capital, in a joint statement.
The Bank had earlier completed the transfer of AIBB’s capital markets business to its Islamic subsidiary, Alliance Islamic Bank Berhad (“AIS”). The move made AIS one of the few local Islamic banks with in-house capabilities to serve business clients with comprehensive corporate and capital markets solutions.
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. “We remain focused on serving the personal and business banking needs of business owners, and, by extension, the people important to them – their family, employees, business partners and customers,” explained Mr Kornreich. “Our aim is to achieve 9% market share in the SME segment by FY2026, and have a personal banking relationship with 70% of our business owners.” Last year, the Bank grew its SME market share to 5%.
Mr Lim added, “We believe we will be able to introduce more innovative broking services and provide our clients with an exceptional investing experience because we have the combined experience of AIBB’s stockbroking management team, remisiers and Phillip Capital’s derivatives team, and global market reach.
