Alliance Bank reports 25% rise in net profit to RM248.3 million

Alliance Bank Malaysia Berhad has reported a robust 25% year-on-year increase in net profit, reaching RM248.3 million for the first quarter of the fiscal year ending June 30, 2026. This significant financial growth is attributed to a broad-based expansion in loans, a rise in customer-generated fee income, and a reduction in net credit costs, bolstered by improved credit performance and a stronger corporate portfolio.

Kellee Kam, Group Chief Executive Officer of Alliance Bank, stated that the quarter's performance reflects the momentum of the bank's Acceler8 strategy and its capacity to achieve high-quality growth across its core segments. Despite global economic uncertainties and supply chain pressures, the bank remains resilient, supported by Malaysia's strong economic fundamentals.

"While the momentum is positive, we remain cautious in navigating the current environment, while continuing to grow our market share in small and medium enterprise (SME) and consumer banking and maintaining momentum in our regional franchise," Kam noted. As the bank approaches the final phase of Acceler8, its focus remains on strategic investments in its workforce, technology, and capabilities, aiming to strengthen customer relationships and deliver responsible long-term value.

The bank's total income saw a 2.5% year-on-year increase to RM630.9 million, driven by growth in both net interest income (NII) and non-interest income (NOII). NII rose 2.5% to RM511.7 million, primarily due to higher loan volumes, with net interest margins (NIM) at 2.26%. NOII increased by 2.5% year-on-year to RM119.2 million, supported by substantial gains in wealth management and banking services fees.

Operating expenses increased by 7.8% year-on-year due to ongoing strategic investments in technology and talent, aligning with the Acceler8 strategy. Consequently, the cost-to-income ratio stood at 47.4%, within the bank's FY2027 guidance and an improvement from the previous fiscal year. Gross loans grew 8.1% year-on-year to RM67.81 billion, with total gross loans and unquoted debt securities rising 9.5% to RM69.33 billion, surpassing industry loan growth. Customer deposits also increased by 8.4% year-on-year to RM70.5 billion, with the bank maintaining a strong current account and savings account (CASA) ratio of 37.7%.

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While the momentum is positive, we remain cautious in navigating the current environment, while continuing to grow our market share in small and medium enterprise (SME) and consumer banking and maintaining momentum in our regional franchise.