KUALA LUMPUR: Alliance Bank Malaysia Bhd
is cautiously optimistic of its financial performance ending March 31, 2026 (FY2026) amid economic headwinds, said group chief executive officer Kellee Kam.
He said the bank projects a double-digit growth rate for its loans, between 8.0 per cent and 10.0 per cent for its consumer segment in FY2026, which is lower than its previous loan growth of between 12.0 per cent and 14 per cent over the last two years.
"The question is whether a combination of rising business costs as well as potential tariffs will impact business growth as well as asset quality. It is too early to tell. The expanded Sales and Service Tax was recently implemented.
"The United States tariffs have not been finalised yet, so that remains a bit of a moving target,” Kam said after the bank’s annual general meeting and extraordinary general meeting here today.
Despite the headwinds, he noted that the liquidity position remained positive with the recent overnight policy rate (OPR) cut by 25 basis points to 2.75 per cent, a lower unemployment rate, and positive industrial and tourism figures to cushion the impact of economic headwinds.
"We believe that these are compensating factors, and asset quality will be manageable this year,” Kam said.
He also said that the bank projects its net interest margin to reduce by 3.0 basis points with the recent OPR cut.
"It is still within our current guidance of between 2.4 per cent and 2.45 per cent. That would signal an increase in business and lending, but it has to balance prudently with the macroeconomics landscape,” Kam said. - Bernama
