Alliance Bank group CEO Kellee Kam
KUALA LUMPUR: Alliance Bank Malaysia Bhd
recorded broad-based growth on contributions from all its business segments, as it onboarded nearly 50,000 new customers in the first half of its financial year (1HFY25).
According to the bank, its total loan book market share increased to 2.68% from 2.58% in FY24.
The improved performance was reflected in the bank's 2QFY25 net profit, which rose to RM189.91mil from RM185.33mil in the year-ago quarter, bringing earnings per share to 12.27 sen from 11.97 sen previously.
Alliance Bank reported revenue of RM605.65mil, up from RM528.1mil in the comparative quarter.
For the six months period, the bank said net profit came to RM366.56mil on revenue of RM1.15bil, which compares to net profit of RM335.87mil and revenue of RM994.36mil in 1HFY24.
The board of directors declared a first interim dividend of 9.5 sen per share, with ex date on Dec 12, 2024, and payable on Dec 30, 2024.
Alliance Bank's improved performance was mainly driven by a 15% increase in net interest income to RM955.9mil, as loan volumes rose with a net interest margin of 2.47%.
Non-interest income also increased, by 16.1% to RM189.5mil, with gains in wealth management income, foreign exchange sales, trade fees, and treasury and investment income. The bank's cost-to-income ratio improved to 46.5%.
On balance sheet, the bank said its loans grew 14.8% year-on-year (y-o-y) to RM59.1bil with all business segments recording double-digit y-o-y growth.
Customer deposits expanded 13.8% y-o-y while the current account savings account (Casa) ratio stood at 40.9%.
Operating expenses rose to RM532.9mil from RM476.8mil in the prior year, reflecting ongoing investments in people and technology for growth and efficiency initiatives.
"Our Acceler8 strategy is a cornerstone of both our growth and our sustainability goals. The meaningful progress made across all eight growth pillars reinforces our dedication to supporting our customers at every stage of their financial journey, offering comprehensive solutions for every milestone.
"Our aim is to be the bank that stands by our customers for life,” said Alliance Bank CEO Kellee Kam in a statement.
