26 July 2023
Alliance Bank Makes Good Progress on Acceler8 Strategy
Press Release
Kuala Lumpur, 26 July 2023 - Alliance Bank Malaysia Berhad (“Alliance Bank” or the “Bank”) held its 41st Annual General Meeting (“AGM”) today and shareholders received Alliance Bank’s Audited Financial Statement for the financial year ended 31 March 2023 (“FY2023”).
For FY2023, Alliance Bank continued to deliver strong performances across key financial metrics. Net profit after tax grew 18.3% year-on-year (“YOY”) to RM677.8 million, which is the highest net profit achieved by the bank to date. As at 31 March 2023, the Bank remains well capitalised with Common Equity Tier-1 (“CET 1”) ratio at 14.5% and Tier-1 Capital ratio at 15.3% respectively. The Bank declared a total dividend for the year amounting to RM340.6 million, representing a 50.2% dividend payout ratio.
“Over the years, we have remained steadfast in our vision of being The Preferred Banking Partner. The robust financial performance and strong customer service metrics to-date are a testament to our Acceler8 strategy bearing fruit as we shape ourselves to be a bank for the community. We will continue to capitalise on the eight identified growth pillars and invest in key enablers to achieve strong financial performance, best in class customer service and solid ESG progress,” said Alliance Bank Group Chief Executive Officer Mr Kellee Kam.
Acceler8 2027 was introduced to guide the Bank towards its FY2027 goals and generate greater value for the communities that it serves. The eight growth pillars outlined in Acceler8 are focused on growth in the small and medium enterprise (SME) segment, supporting business customers through their life cycle, broadening the consumer business by targeting attractive segments such as young professionals and high-net-worth clients, targeting resilient ecosystems, becoming the regional champion for fast-growing economic corridors, driving synergies and value creation in the corporate and capital market business, accelerating the Islamic business by leveraging unique propositions and lastly, leveraging partnerships to scale product offering and distribution.
The Bank is targeting to maintain double-digit growth in the SME segment for FY2024. To advance on this target, the Bank is further innovating its services and solutions to meet the needs of businesses throughout their life cycle. For example, Alliance Bank is targeting resilient ecosystems, such as renewable energy, helping SMEs adopt more sustainable business practices in their operations. The Bank achieved RM180 million in renewable energy financing in FY2023 and targets to increase this by 70% to over RM300 million in FY2024. Alliance Bank has set its sights to achieve 10% financing market share in the renewable energy sector by 2025.
In its efforts to broaden its consumer business, Alliance Bank continues to introduce innovative solutions tailored to the evolving banking needs. Catering to digitally-savvy customers’ preference for digital transactions, the Bank introduced ASEAN’s first in-app Dynamic Card Number feature in the Alliance Bank Visa Virtual Credit Card to make online transactions safer and more secure. Since the launch in April 2023, the Bank grew its credit card base by 25% to 152,000.
Expanding its footprint in rapidly growing economic corridors, Alliance Bank aims to surpass its loans growth of 10%-12% in Sarawak and Penang. These states continue to attract large public and private investments and the Bank plans to establish more branches and expand its sales force in these geographies.
The Islamic Banking business remains the Bank’s fastest growing segment. Alliance Islamic Bank's unique value propositions such as the Halal in One programme not only assists SMEs in obtaining Halal certification and financing, but helps them gain greater market access to new clients. In FY2024, the Bank aims to surpass the previous years’ Islamic Financing growth of 7%. The Bank is also working to increase synergies between its corporate and capital market businesses through an improved client coverage strategy, with the FY2024 goal of surpassing the 7%-8% revenue growth achieved in previous years.
Kam explained, “We continue to build alliances to enable us to scale our product offering and distribution while delivering more value for stakeholders. We want to meet our customers’ banking needs at every stage of their growth journey. We are pleased to partner likeminded organisations who share similar goals, for example in helping businesses and individuals adopt sustainable practices and create a positive impact for the community and environment.”
In FY2023, Alliance Bank formed partnerships with organisations such as Bursa Malaysia, UN Global Compact Network Malaysia & Brunei (UNGCMYB) and Malaysian Green Technology and Climate Change Corporation (MGTC), enabling the Bank to create an ecosystem that offers value-added benefits to businesses, especially in the area of sustainability adoption. Additionally, the Bank collaborated with SME Corp and UNGCMYB to publish the inaugural annual ESG Survey Report titled, “ESG Insights from Malaysian SMEs: Building a Better Future Together”. The report seeks to raise awareness among businesses about the need to implement ESG practices and to give practical advice for SMEs on their path to sustainability.
The Bank recorded RM8.1 billion in new sustainable banking business in FY2023. At the same time, the Bank reduced the C51 category loan portfolio to 35% and Scope 1 and Scope 2 GHG emissions by 16.6% against the FY20 baseline.
For more information on Alliance Bank, its products and services, please visit https://www.alliancebank.com.my.
###
1 C5 refers to Bank Negara Malaysia’s Climate Change and Principle-based Taxonomy (“CCPT”) classification of businesses and transactions that do not demonstrate a commitment to remediate any harm caused nor any initiative to transition to more sustainable practices.
For FY2023, Alliance Bank continued to deliver strong performances across key financial metrics. Net profit after tax grew 18.3% year-on-year (“YOY”) to RM677.8 million, which is the highest net profit achieved by the bank to date. As at 31 March 2023, the Bank remains well capitalised with Common Equity Tier-1 (“CET 1”) ratio at 14.5% and Tier-1 Capital ratio at 15.3% respectively. The Bank declared a total dividend for the year amounting to RM340.6 million, representing a 50.2% dividend payout ratio.
“Over the years, we have remained steadfast in our vision of being The Preferred Banking Partner. The robust financial performance and strong customer service metrics to-date are a testament to our Acceler8 strategy bearing fruit as we shape ourselves to be a bank for the community. We will continue to capitalise on the eight identified growth pillars and invest in key enablers to achieve strong financial performance, best in class customer service and solid ESG progress,” said Alliance Bank Group Chief Executive Officer Mr Kellee Kam.
Acceler8 2027 was introduced to guide the Bank towards its FY2027 goals and generate greater value for the communities that it serves. The eight growth pillars outlined in Acceler8 are focused on growth in the small and medium enterprise (SME) segment, supporting business customers through their life cycle, broadening the consumer business by targeting attractive segments such as young professionals and high-net-worth clients, targeting resilient ecosystems, becoming the regional champion for fast-growing economic corridors, driving synergies and value creation in the corporate and capital market business, accelerating the Islamic business by leveraging unique propositions and lastly, leveraging partnerships to scale product offering and distribution.
The Bank is targeting to maintain double-digit growth in the SME segment for FY2024. To advance on this target, the Bank is further innovating its services and solutions to meet the needs of businesses throughout their life cycle. For example, Alliance Bank is targeting resilient ecosystems, such as renewable energy, helping SMEs adopt more sustainable business practices in their operations. The Bank achieved RM180 million in renewable energy financing in FY2023 and targets to increase this by 70% to over RM300 million in FY2024. Alliance Bank has set its sights to achieve 10% financing market share in the renewable energy sector by 2025.
In its efforts to broaden its consumer business, Alliance Bank continues to introduce innovative solutions tailored to the evolving banking needs. Catering to digitally-savvy customers’ preference for digital transactions, the Bank introduced ASEAN’s first in-app Dynamic Card Number feature in the Alliance Bank Visa Virtual Credit Card to make online transactions safer and more secure. Since the launch in April 2023, the Bank grew its credit card base by 25% to 152,000.
Expanding its footprint in rapidly growing economic corridors, Alliance Bank aims to surpass its loans growth of 10%-12% in Sarawak and Penang. These states continue to attract large public and private investments and the Bank plans to establish more branches and expand its sales force in these geographies.
The Islamic Banking business remains the Bank’s fastest growing segment. Alliance Islamic Bank's unique value propositions such as the Halal in One programme not only assists SMEs in obtaining Halal certification and financing, but helps them gain greater market access to new clients. In FY2024, the Bank aims to surpass the previous years’ Islamic Financing growth of 7%. The Bank is also working to increase synergies between its corporate and capital market businesses through an improved client coverage strategy, with the FY2024 goal of surpassing the 7%-8% revenue growth achieved in previous years.
Kam explained, “We continue to build alliances to enable us to scale our product offering and distribution while delivering more value for stakeholders. We want to meet our customers’ banking needs at every stage of their growth journey. We are pleased to partner likeminded organisations who share similar goals, for example in helping businesses and individuals adopt sustainable practices and create a positive impact for the community and environment.”
In FY2023, Alliance Bank formed partnerships with organisations such as Bursa Malaysia, UN Global Compact Network Malaysia & Brunei (UNGCMYB) and Malaysian Green Technology and Climate Change Corporation (MGTC), enabling the Bank to create an ecosystem that offers value-added benefits to businesses, especially in the area of sustainability adoption. Additionally, the Bank collaborated with SME Corp and UNGCMYB to publish the inaugural annual ESG Survey Report titled, “ESG Insights from Malaysian SMEs: Building a Better Future Together”. The report seeks to raise awareness among businesses about the need to implement ESG practices and to give practical advice for SMEs on their path to sustainability.
The Bank recorded RM8.1 billion in new sustainable banking business in FY2023. At the same time, the Bank reduced the C51 category loan portfolio to 35% and Scope 1 and Scope 2 GHG emissions by 16.6% against the FY20 baseline.
For more information on Alliance Bank, its products and services, please visit https://www.alliancebank.com.my.
Mr Kellee Kam, Group Chief Executive Officer at the Bank’s 41st Annual General Meeting Online Press Conference
1 C5 refers to Bank Negara Malaysia’s Climate Change and Principle-based Taxonomy (“CCPT”) classification of businesses and transactions that do not demonstrate a commitment to remediate any harm caused nor any initiative to transition to more sustainable practices.