KUALA LUMPUR: Alliance Bank Malaysia Bhd’s net profit rose by 12.5 per cent to RM198.69 million in the first quarter ended June 30, 2025 (1Q FY2026), from RM176.65 million a year earlier.
In a Bursa Malaysia filing today, the bank said the growth in net profit was primarily driven by increased revenue for the quarter after taking into account higher allowances for expected credit losses and operating expenses.
Revenue for the quarter increased to RM615.32 million against RM539.77 million year-on-year.
The bank’s net interest income increased 7.4 per cent to RM499.0 million from RM464.7 million in the previous corresponding quarter, driven by higher loan volume, while net interest margin stood at 2.42 per cent.
Alliance Bank’s non-interest income rose 54.9 per cent to RM116.3 million, primarily from higher foreign exchange sales and trade fees, strong treasury and investment income, and increased banking service fees.
Its cost-to-income ratio also improved to 45.1 per cent from 48.0 per cent in 1Q FY2025.
“Overall loans momentum continued with a 9.9 per cent year-on-year growth, with broad-based expansion across all business segments,” the bank said.
Small and medium enterprise loans rose 9.6 per cent, consumer loans increased 11.2 per cent, commercial loans were up 10.9 per cent, and corporate loans recorded a 3.3 per cent increase.
Alliance Bank said its customer deposits strengthened by 12.5 per cent year-on-year while maintaining one of the highest CASA ratios in the industry at 38.0 per cent.
It added that its 1Q FY2026 net credit cost stood at 14.4 basis points, reflecting prudent provisioning, while the bank’s loan loss coverage ratio remained healthy at 113.3 per cent.
The bank said it remains well-capitalised with a Common Equity Tier-1 ratio (CET1) of 12.4 per cent and a total capital ratio of 16.9 per cent.
“Liquidity coverage ratio was 162.6 per cent, with a loan fund ratio at 87.2 per cent,” it added.
© New Straits Times Press (M) Bhd
