Kuala Lumpur, 27 February 2025 - Alliance Bank Malaysia Berhad ("Alliance Bank" or "the Bank") recorded a net profit after tax of RM553.2 million for the nine months ended 31 December 2024 ("9MFY2025"), representing a 7.9% year-on-year (“YOY”) growth.
Net interest income rose 13.9% YOY, driven by higher loan volumes while net interest margin stood at 2.46%. Non-interest income performed well, growing 11.0% YOY to RM256.3 million, driven by higher wealth management income, foreign exchange sales and trade fees, and treasury and investment income. The cost-to-income ratio for the nine-month period improved to 46.8%, as revenue grew 13.5% YOY, outpacing the 10.1% increase in operating expenses due to continued investments in people and technology.
Overall loans expanded 14.2% YOY to RM61.0 billion, with strong growth across all core segments. SME and Commercial loans grew 14.1% and 16.8% respectively while Consumer banking loans increased 13.8% and Corporate loans grew 13.5%.
Alliance Bank maintains a strong funding base, with customer deposits rising 13.3% YOY, mainly from fixed deposits which grew 26.1% YOY. The CASA ratio moderated to 39.4% but remained among the highest in the industry.
The 9MFY2025 net credit cost was 30.6 bps, reflecting a prudent pre-emptive provision of 8.2 bps. The loan loss coverage was at 110.9%.
The capital position of the Bank remained sound with Common Equity Tier-1 ratio (“CET 1”) at 12.4%, Tier-1 Capital ratio at 13.6% and total capital ratio at 17.0%. The Bank’s liquidity position is healthy, with a liquidity coverage ratio of 152.1% and loan to fund ratio of 88.4%.
Acceler8 Powers Ahead
Completing its second year since the launch, the Acceler8 strategy continues to underpin the Bank’s strong performance. In becoming The Bank For Life, Alliance Bank continues to foster deeper connections with the communities it serves.
All eight growth pillars under the Acceler8 transformation strategy continue to yield positive results. The Bank outpaced the industry SME loan growth of 8% with its 14% YOY increase, expanding market share to 5.35% (March 2024: 5.19%). Business banking client fee income grew 6% YOY to RM162 million as the Bank strengthened its financial solutions to better support business clients at every stage of their growth journey, with transactional fee income growing by 19% y-o-y.
Consumer loans recorded a 14% YOY growth, outperforming the industry’s 6% growth, expanding market share to 2.25% (March 2024: 2.13%). The Bank strengthened its digital payment offerings through various strategic partnerships, the latest being with Samsung and Google to enable seamless mobile payments for Alliance Bank Visa credit cardholders. This collaboration allows cardholders to integrate their Alliance Bank Visa credit cards, including the award-winning Visa Platinum Virtual Credit Card with Dynamic Card Number technology, into Samsung Pay and Google Pay for secure, contactless transactions across millions of merchants in over 100 countries worldwide.
The Bank expanded its presence in key economic corridors including Johor, Penang and Sarawak, recording double-digit growth in total regional loans and deposits of 13% YOY and 15% YOY, respectively.
Meanwhile, the capital market segment recorded triple-digit growth of 129% YOY contributed by robust corporate finance deals.
For the Islamic franchise, gross financing grew 9% YOY from RM13.2 billion to RM14.4 billion, while revenue rose 24% YOY, driven by the expansion of the Bank’s flagship Halal in One Programme. The Bank continues to enhance acceptance, collaborate with partners to widen reach, and develop unique propositions to further scale its Islamic business.
Sustainability Achievements
Alliance Bank has made significant strides in its sustainability commitments. As of 9MFY2025, cumulative new sustainable business reached RM14.0 billion, moving closer to the RM15.0 billion target set for FY2027.
Under the Sustainability Impact Programme, the Bank has achieved 90% of its FY2025 full-year target with RM503 million in cumulative approved loans against the target of RM560 million. In support of broader sustainability efforts, Alliance Bank collaborated with the Northern Corridor Economic Region and UNGCMYB to conduct Climate Action workshops, equipping businesses in the northern region with insights to navigate their sustainability journey. Recently, the Bank unveiled the second edition of its annual ESG survey report (“ESG 2.0 Report”), highlighting a sixfold increase in ESG awareness among Malaysian SMEs. Launched by YB Nik Nazmi Nik Ahmad, Minister of Natural Resources and Environmental Sustainability at the SME ESG START Symposium 2025, the report was developed in collaboration with Monash University Malaysia, Zurich Malaysia, UN Global Compact Network Malaysia & Brunei (“UNGCMYB”), SME Corporation Malaysia, Malaysian Green Technology and Climate Change Corporation, and INCEIF University.
"Our Acceler8 strategy serves as a strong foundation for sustainable growth. The progress across all eight pillars reflects our commitment to delivering differentiated solutions that support customers at every stage of their journey. We remain focused on putting customers first by enhancing value, driving innovative digital innovation, and adapting to the evolving landscape. Our goal is to be a trusted banking partner, standing by our customers through every challenge and opportunity," said Alliance Bank Group Chief Executive Officer, Mr. Kellee Kam.
Financial Highlights for 9MFY2025
Key Results
- Revenue grew 13.5% YOY to RM1.71 billion
- Net interest income increased 13.9% YOY
- Net interest margin at 2.46%
- Overall loans grew 14.2% YOY
- CASA ratio stood at 39.4%, one of the highest in the industry
- Non-interest income grew 11.0% YOY to RM256.3 million
- Cost-to-income ratio was at 46.8%
- Net credit cost was at 30.6 bps
- Net profit after tax at RM553.2 million
- Healthy liquidity coverage ratio at 152.1%
- Capital position: Common Equity Tier-1 ratio at 12.4%; Tier-1 capital ratio at 13.6%, and the total capital ratio at 17.0%
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