A good stock is one that provides reasonable return with minimal risk.

Most of the time in the past few years, Alliance Bank traded above RM4.00 per share. It is now trading at RM2.85.

In the recent two quarters, it posted a drop in earning. This is especially the case for the quarter ended June 2019, whereby its earning dropped from the customary RM140 mil per quarter to RM77 mil (EPS of 5 sen only). This caused investors to panic and sold down the stock heavily.

But if you take a closer look, the lower profit was due to RM74.9 mil provisioning for a few big loans, which is one off. The following is extracted from the company's press release :

Analysts expect earnings to normalise going forward :

(Kenanga IB, 30 October 2019)

(Hong Leong IB, 9 October 2019)

(Public IB, 28 August 2019)

With estimated DPS of 16 sen, dividend yield at current price is approximately 5.6%.

Alliance Bank is owned and controlled by Singapore's Temasek. First class management, of course.