Alliance Bank group CEO Kellee Kam
KUALA LUMPUR: Alliance Bank Malaysia Bhd
has concluded the first quarter of its 2025 financial year (1QFY25) with a positive financial performance, underpinned by its ACCELER8 strategy.
"Our Acceler8 strategy continues to drive our overall growth and sustainability aspirations.
"As we achieve significant progress in all our eight growth pillars, we remain focused on providing tailored financial and non-financial solutions with exceptional service to become the preferred banking partner," said group CEO Kellee Kam in his review of the bank's first-quarter performance.
During the quarter, the bank's SME loans growth continued to gain market share to 5.2% and outperform industry growth. The bank also acquired 2,500 new-to-bank business customers in the April-June period.
"Alliance Bank’s emphasis on delivering personalised solutions and service excellence to support business customers through their life cycle has enabled the Bank to grow its business banking client fee income by 13%," said Kam.
In the quarter ended June 30, 2024, Alliance Bank recorded a net profit of RM176.65mil, up from RM150.54mil in the year-ago quarter, which translates to an earnings per share of 11.41 sen against 9.72 sen previously.
The bank's revenue in 1QFY25 climbed to RM539.78mil from RM466.26mil in the comparative quarter.
During the quarter, Alliance Bank said net interest income grew 15.8% to RM464.7mil on higher loans volume while the net interest margin was 2.45%
Non-interest income rose 15.7% to RM75.1mil, primarily from higher wealth management income, foreign exchange sales and trade fees.
Operating expense increased 12.7% y-o-y, resulting in a cost-to-income ratio of 48%.
On loans, the bank said the momentum continued with 14.8% year-on-year (y-o-y) growth to RM57.1bil, with advancements across all business lines.
Alliance Bank said its funding is healthy, with customer deposits growing 11.6% y-o-y to RM57.8bil.
It said the current account savings account (Casa) ratio remained one of the industry’s highest at 41.5%.
