KUALA LUMPUR: Alliance Bank Malaysia Bhd
expects loan growth of between 7.5 per cent and 10 per cent for the financial year ending March 31, 2027 (FY2027), including contributions from its unsecured banking segment.
Group chief executive officer Kellee Kam said the bank expects loan growth to be supported by continued expansion in the electrical and electronics (E&E), manufacturing and construction sectors.
"We are obviously supporting a lot of the growth that we're seeing in the E&E sector, as well as the manufacturing and construction sectors. We are still seeing a fair amount of pickup.
"The property segment is also seeing a fair amount of pickup. Mortgages, clearly, we do want to continue to support homeownership, so we are also expecting that to pick up a fair bit," he told a press conference after Alliance Bank's 44th Annual General Meeting (AGM) here, today.
Kellee also said the bank has adopted a wider guidance range for FY2027, reflecting the evolving economic environment.
The bank is also guiding for its net interest margin (NIM) to be between 2.28 per cent and 2.35 per cent, while credit costs are expected to range between 27 basis points and 32 basis points.
"We are targeting a return on equity (ROE) of between 10 per cent and 10.5 per cent. For dividends, we are guiding a payout ratio of between 40 per cent and 50 per cent for FY2027, depending on how the year progresses," he said.
On credit costs, Kellee said Alliance Bank had taken a more prudent approach by setting aside pre-emptive provisions amid uncertainties when it closed its FY2026 financial statements in March.
He noted that Malaysia entered the current period of uncertainty from a position of strength, supported by solid economic growth over the past few years, healthy liquidity and robust tourism and foreign direct investment (FDI), which have underpinned domestic consumption.
Kellee said proactive measures by Bank Negara Malaysia and the government, including the reduction in the overnight policy rate (OPR) and statutory reserve requirement (SRR), as well as guarantee schemes provided by Credit Guarantee Corporation Malaysia (CGC) and Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP), have helped support liquidity and mitigate credit risks.
In another development, he said Malaysia’s economic growth is expected to be at the upper end of the government’s forecast range of four to five per cent, supported by broad-based growth across various sectors.
The growth will be driven by the tourism, services, manufacturing, as well as oil and gas sectors, with early economic indicators showing that performance remains strong.
"Meanwhile, we also expect OPR to remain at 2.75 per cent throughout the year based on the bank’s internal planning," he added. - Bernama
