KUALA LUMPUR: Alliance Bank Malaysia Bhd
registered strong year-on-year earnings growth of 25% in the first quarter of its 2027 financial year (FY27), which group CEO Kellee Kam said underlines the continued momentum of the bank's Acceler8 strategy and its ability to capture high-quality growth across core segments.
However, Kam said the bank remains cautious amid the global volatility and supply chain pressures as it continues to gain more market share in SME and consumer banking, and sustained momentum across its regional franchises.
"As we enter the final stretch of Acceler8, we remain focused on investing prudently in our people, technology and capabilities, deepening customer relationships and delivering responsible, long-term value to all our stakeholders,” he said in a statement.
In 1QFY27, Alliance Bank's net profit rose to RM248.32mil from RM198.7mil in the year-ago quarter. Quarterly revenue climbed to RM630.93mil from RM615.32mil in the previous comparative quarter, driven by growth in both net interest income (NII) and non-interest income (NOII)
NII expanded 2.5% year-on-year (y-o-y) to RM511.7mil, driven primarily by higher loan volumes, with the net interest margin (NIM) standing at 2.26%.
NOII rose 2.5% y-o-y to RM119.2mil, as group wealth management fees climbed 46.6% y-o-y and banking services fees grew 75.8% y-o-y.
According to the bank, operating
expenses increased 7.8% y-o-y on ongoing strategic investments in technology and talent under the Acceler8 strategy. The cost-to-income ratio fell to to 47.4% from 47.9% in the previous financial year, within the bank’s FY27 guidance range.
Gross loans expanded 8.1% y-o-y to RM67.81bil while customer deposits increased 8.4% y-o-y to RM70.5bil. The current account savings account ratio stood at 37.7%.
