PETALING JAYA: Alliance Bank Malaysia Bhd
says notwithstanding its current positive momentum, it remains cautious as it navigates the environment while continuing to achieve market share gains in small and medium enterprise (SME) and consumer banking and a sustained momentum across its regional franchises.
Group chief executive officer Kellee Kam said the lender’s performance in the first quarter ended June 30, 2026 (1Q27) reflects the momentum of its Acceler8 strategy and its ability to capture “high-quality” growth across core segments.
“Amid global volatility and supply chain pressures, we remained resilient, supported by the country’s strong fundamentals,” he said in a statement.
“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.”
The bank made a net profit of RM248.3mil for its 1Q27 compared to a net profit of RM198.7mil for the same period a year ago, a 25% increase thanks to broad-based loan growth, higher client-based fee income, a significantly lower net credit cost following better credit performance and recoveries from its corporate portfolio.
The bank said in 1Q27, its gross loans expanded 8.1% year-on-year (y-o-y) to RM67.81bil, while total gross loans and unrated bonds grew 9.5% y-o-y to RM69.33bil, outperforming industry loan growth.
Expansion was broad-based across segments, with commercial loans growing 19.1% y-o-y, corporate loans and unrated bonds rising 12.7%, consumer loans increasing 7.8% and SME loans expanding 6.4%.
Total assets, meanwhile, grew 13.2% to RM95.8bil.
Revenue for the period under review was at RM630.9mil against RM615.3mil in the same period a year ago.
The lender said revenue growth was driven by growth in both net interest income (NII) and non-interest income (NOII).
It noted that NII expanded 2.5% y-o-y to RM511.7mil, driven primarily by higher loan volumes, with the net interest margin standing at 2.26%.
NOII meanwhile rose 2.5% to RM119.2mil, as group wealth management fees climbed 46.6% and banking services fees grew 75.8%.
Operating expenses increased 7.8% on ongoing strategic investments in technology and talent under the Acceler8 strategy, bringing the cost-to-income ratio to 47.4%, within the bank’s financial year 2027 (FY27) guidance range and an improvement on the 47.9% recorded for FY26, the bank said.
Alliance Bank said the loan loss coverage ratio stood at 112.9% and the bank continues to maintain sound liquidity and capital positions, with the liquidity coverage ratio at 129.3%, loan-to-fund ratio at 87.7%, net stable funding ratio at 116.3%, Common Equity Tier-1 ratio at 13% and total capital ratio at 17.4%.
A banking analyst said on the whole, it appeared that the bank’s asset quality concerns have moderated to a certain extent, helped by proactive provisioning and a balance sheet which looks strong.
“I’ve yet to crunch the numbers, but it looks like some of its efforts are paying off,” he told StarBiz.
At last look, shares in the bank were at RM4.77 apiece, valuing the whole banking group at RM8.25bil.
