The impact is estimated to be a larger +5.1% on Alliance Bank, given that it has the highest proportion of variable rate loans and current account/savings account in the industry.
KUALA LUMPUR: Alliance Bank Bhd's net profit rose by 21.5% to RM148.93mil in the third quarter ended Dec 31, 2018, boosted by higher net interest margin and operating income.
It announced on Thursday the net profit had increased from RM122.55mil a year ago. Its revenue increased by 7.8% to RM418.40mil from RM388mil a year ago. Earnings per share were 9.6 sen compared with eight sen.
Alliance Bank's net income grew by 7.8% or RM30.4mil mainly from net interest income while its net interest margin rose by 18 basis points to 256bps.
Its other operating income was RM76.2mil. Its operating expense was better off by 8.6% or RM18.5mil while cost to income ratio improved by 8.5% to 47.0%. Expected credit loss was RM32.6mil.
The banking group also performed better when compared with the second quarter. Its net profit of RM148.93mil in Q3 was up by 6% or RM8.4mil.
In the nine months, its net profit increased by 11.9% to RM425.82mil from RM380.35mil in the previous corresponding period. Its revenue rose by 4.2% to RM1.22bil from RM1.17bil.
On the outlook, Alliance Bank said it would leverage on its franchise strength to deliver sustainable profitability and to fulfill the financial needs of its customers.
“In FY19, we will continue to scale up for growth in our core businesses i.e. consumer lending and SME Banking.
“For these businesses, we will drive productivity and increase our sales capacity to accelerate loan growth, aiming to outpace industry growth. We will also enhance our leads generation and sales management through better customer and market analytics.
“In addition, Alliance@Work (our bank-at-work programme) will continue to be an important acquisition channel to garner consumer CASA and business CASA (via company payroll and online cash management),” it said.
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