Alliance Bank posts flattish net profit of RM176.86mil in 3Q


Alliance Bank Malaysia Bhd group chief executive officer Kellee Kam.—AZMAN GHANI/The Star

KUALA LUMPUR: Alliance Bank Bhd is aiming to meet its performance guidance for the year as it continues to expand its business presence in fast-growing economic corridors.

In comments accompanying its financial results, the bank said its performance was supported by prudent loans growth above the industry average, strong credit risk management, deposit/current account savings account (Casa) proposition and cost management.

In the third quarter of the financial year (3QFY24), Alliance Bank recorded a net profit of RM176.86mil, which was nearly on a par with RM177.1mil registered in the same quarter last year, representing an earnings per share of 11.42 sen against 11.44 sen.

It reported revenue of RM509.92mil, up from RM496.55mil in the comparative quarter.

The group said net interest income during the quarter was RM442.3mil, 0.9% higher year-on-year (y-o-y) due to higher loan growth and overnight policy rate hike.

Its net interest margin was 2.49%, lower than 2.75% recorded in 3QFY23.

Other operating income increased RM9.6mil or 16.5%, mainly due to higher wealth management and banca fee income, FX sales, trade fees and processing fees.

Operating expenses, meanwhile, increased RM26mil or 11.7%, mainly from higher personnel cost, marketing cost and establishment cost.

The group said its Casa ratio stood at 45.1% with customer-based funding at RM56.1bil.

Through its funding strategy, its liquidity coverage and loans-to-funds ratios stood at 149.9% and 87.5%, respectively.

For the nine-month period, Alliance Bank's net profit was RM512.73mil compared to RM547.68mil in 3QFY23, while revenue was RM1.5bil against RM1.45bil in the previous corresponding quarter.

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