Alliance Bank records FY21 net profit of RM358.79mil

KUALA LUMPUR: Alliance Bank Malaysia Bhd recorded a net profit of RM358.79mil in FY21 ended March 31, 2021, a 15.4% drop from RM424.26mil in the previous financial year.

Revenue for the financial year in review was RM1.82bil, a 7.5% increase over RM1.69bil in FY20.

For the final quarter of FY21, the bank posted a net profit of RM50.07mil, which was 48.9% lower from RM98.06mil in the previous corresponding quarter on the back of revenue of RM445.81mil, 2.6% higher year-on-year (y-o-y) from RM434.41mil.

The board of directors proposed an interim dividend of 5.79 sen a share, which represents a dividend payout ratio of 25%.

For the entire year, the bank's net interest income improved 2.8% y-o-y to RM1.36bil despite the multiple overnight policy rate cuts due to lower funding cost from deposit mix optimisation, while net interest margin was 2.3%.

Non-interest income rose 24.8% to RM456.7mil due to improved treasury and investment income and higher wealth management and brokerage fees.

Pre-provision operating profit grew 15.3% y-o-y to over RM1bil on better revenue and disciplined expense management.

The cost-to-income ratio improved to 44.1% y-o-y.

Current account saving account (Casa) deposits grew 25.7% due to robust sign-ups of Alliance SavePlus Account, resulting in an improved Casa ratio of 47%.

SME loans improved 6.4% y-o-y, largely owing to the take-up of BNM's Special Relief Facility.

The bank's liquidity coverage ratio was above industry average at 150%.

Common Equity Tier-1 ratio was 16.2%, Tier-1 Capital ratio at 17.2% and Total Capital Ratio at 21.6%.
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