Alliance Bank Malaysia group chief executive officer Joel Kornreich said the bank continues to deliver steady results
KUALA LUMPUR: Alliance Bank Malaysia Bhd
reported its highest quarterly net profit in nearly three years at RM136.36mil in first quarter ended June 30, 2018, boosted by higher net interest margin and better risk adjusted return (RAR) loans.
It said on Thursday this was the highest quarterly net profit since 2QFY15, up 1% on-year from RM135mil a year ago.
“Overall revenue increased 3.8% year-on-year to RM401.07mil from RM386.61mil). Net interest margin (NIM) improved 11 basis points to 2.43%, top two in the industry,” it said.
Alliance Bank's group chief executive officer Joel Kornreich said the higher net profit was driven by higher year-on-year net interest margin due to its focus on growing better RAR loans.
“Return on equity improved to 10.2%, a ratio in line with guidance,” he said.
Kornreich said better RAR loans grew 21.3%, making up 37% of the portfolio as compared to 32% a year ago.
This was contributed primarily by growth in SME, commercial, unsecured consumer loans, and Alliance One Account (AOA).
SME and commercial loans expanded 7.8% on-year, and consumer unsecured loans grew 20.2% on-year. Overall portfolio risk adjusted return yield improved to 1.13% from 1.08% in 1QFY2018.
Kornreich pointed out the bank’s key strategic priorities of SME Banking expansion, AOA, and Alliance@Work had performed well.
In 1QFY2019, the loans acceptance of SME banking business increased RM322mil on-year to RM740mil.
As for AOA, its loan balances reached RM1.6bil during the quarter.
Alliance@Work acquired more than 5,700 local employee current account and savings account account sign-ups and 210 company payroll accounts.
In 1QFY2019, the loans acceptance of SME banking business increased RM322mil on-year to RM740mil.
During the same quarter, AOA’s loan balances reached RM1.6bil.
“We continue to enhance shareholder value. Our net asset per share has shown a steady increase over the past four years to RM3.48,” said Kornreich.
Limited time offer:
Just RM5 per month.
