KUALA LUMPUR: Alliance Bank Bhd wrapped its 2026 financial year (FY26) with an improved performance, which group CEO Kellee Kam said reflects the successful implementation of its Acceler8 strategy and resilience of its diversified business model.
"As we navigate global uncertainties, we are focused on leveraging our solid financial foundation to stand by our customers, support their transition journeys, and deliver responsible, long-term value to all stakeholders,” said Kam in a statement.
In the fourth quarter, the bank recorded a net profit of RM206.04mil, up from RM197.49mil in the same quarter in the previous year, which translated to earnings per share of 11.91 sen against 12.76 sen previously.
Quarterly revenue rose to RM593.08mil from RM563.24mil in the previous comparative quarter
For the full financial year, Alliance Bank's net profit rose to RM826.53mil from RM750.73mil in FY25 on the back of revenue of RM2.47bil against RM2.27bil in the previous year.
According to the bank, the higher revenue was underpinned by growth in both net interest income (NII) and non-interest income (NOII). It said NII of RM2.01bil was driven primarily by higher loan volumes with net interest margin (NIM) standing at 2.34%. NOII jumped 42% year-on-year (y-o-y) to RM459.2mil.
FY26 cost-to-income stood at 47.9% amid continued investments in people and technology.
On balance sheet, the bank's gross loans expanded 7.5% y-o-y, supported by broad-based expansion across SME, commercial and consumer segment.
Customer deposits grew 8.8% y-o-y, supported mainly by fixed deposit growth, while the bank maintained a current account savings account (Casa) ratio of 37.5%.
The board of directors declared a second interim dividend of 9.74 sen per share, with entitlement date on June 12, 2026, and payable on June 29, 2026.
In Alliance Bank's filing with Bursa Malaysia, it noted that FY27 marks a transition year for the group.
"As we enter the final phase of our Acceler8 2027 strategy, the group has largely established its core growth engines with expanded market share across all lines of business, strengthened key technology capabilities, and reinforced its balance sheet to support sustainable growth.
"Accordingly, the focus for FY27 will shift from broad-based build-out towards value realisation, operational refinement and continued disciplined execution, while positioning the Group for its next stage of strategic evolution beyond Acceler8," it said.
Despite external uncertainties, the bank remains cautiously optimistic for the new financial year on the back of its strengthened fundamentals, improved capital position and more resilient operating platform.
