PETALING JAYA: Alliance Bank Malaysia Bhd began its financial year 2021 (FY21) on a strong note after its earnings surged by 36% year-on-year (y-o-y) despite the loan moratorium for borrowers.
The banking group said its net profit in the first quarter ended June 30 increased to RM104.31mil, as compared to RM76.69mil a year earlier.
The improved performance was mainly due to higher treasury and investment income as well as lower operating expenses, it said in a filing with Bursa Malaysia.
Revenue in the three-month period rose by 4.1% y-o-y to RM421.6mil.
As a result of the improved profitability, the bank’s earnings per share jumped to 6.7 sen from 5 sen a year earlier. No dividend was declared for the first quarter.
Alliance Bank said that in the April-June 2020 period, its net credit cost stood at 21.8 basis points (bps). This includes pre-emptive provisions of 13.4 bps for segments highly impacted by Covid-19.
“The bank will continue to provide targeted assistance to individuals and business clients after the moratorium ends in Sept 2020 via payment relief assistance programmes.
“The bank’s liquidity and capital positions remain strong. Its Common Equity Tier-1 ratio was at 14.5%, Tier-1 Capital ratio at 15.4%, and total capital ratio at 19.8%.
“Liquidity coverage ratio improved 212.2% mainly due to the bank’s holding of high-quality liquid assets to maintain strong liquidity buffers to mitigate possible shocks arising from the Covid-19 pandemic. Loan-to-fund ratio was 80.9%, ” it said in a separate statement.
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