malaysiang
KUALA LUMPUR, Alliance Bank Malaysia Bhd’s net profit rose by 17.3 per cent to RM176.65 million in the first financial quarter ended June 30, 2024 (1Q FY2025) from RM150.54 million a year ago.
In a Bursa Malaysia filing today, the bank said the growth was primarily driven by the elevated revenue offset by higher operating expenses and allowances for expected credit losses.
Revenue in 1Q increased by 15.8 per cent to RM539.78 million versus RM466.26 million previously.
The bank said its net interest income grew 15.8 per cent to RM464.7 million, driven by higher loan volume, while the net interest margin was 2.45 per cent.
‘The non-interest income rose 15.7 per cent to RM75.1 million, primarily from higher wealth management income, foreign exchange sales and trade fees, while the cost-to-income ratio stood at 48.0 per cent,’ it said.
Alliance Bank said overall loan momentum continued with a 14.8 per cent year-on-year (y-o-y) growth, representing almost double that of the 7.9 per cent growth recorded in 1Q
FY2024.
‘The positive performance was led by the bank’s small and medium enterprise (17.1 per cent y-o-y), commercial (17.5 per cent y-o-y), corporate (9.7 per cent y-o-y) and consumer (14.0 per cent y-o-y) banking growth.
‘Alliance Bank’s funding is healthy, with customer deposits growing 11.6 per cent y-o-y, (while) the current/savings account (CASA) ratio remains one of the industry’s highest at 41.5 per cent,’ it said.
Meanwhile, the 1Q FY2025 net credit cost was 8.1 basis points, while the bank’s loan loss coverage ratio was at 111.6 per cent.
‘The bank remains well-capitalised with a common equity tier-1 ratio of 12.2 per cent and a total capital ratio of 16.4 per cent.
‘In terms of liquidity position, Alliance Bank is resilient with a liquidity coverage ratio of 163.0 per cent and the loan-to-fund ratio of 88.2 per cent,’ it said.
Moving forward, the bank anticipates maintaining its positive financial performance and remains committed to realising growth objectives under its ‘Acceler8’ strategy.
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With prudent loan growth above the industry average, strong credit risk management practices, strengthening of our deposit and CASA propositions as well as investments in technology, the group aims to continue its growth momentum in FY2025,’ it added.
Source: BERNAMA News Agency
