KUALA LUMPUR: Alliance Bank Malaysia Bhd announced today a net profit after tax of RM547.7 million for the nine months ended Dec 31, 2022 (9M’23), an increase of 16.6% year-on-year (y-o-y).
Revenue for the nine months rose 2.5% y-o-y to RM1.45 billion, driven by net interest income improvement of 12.4%y-o-y to RM1.25 billion. Accordingly, net interest margin has improved 15 basis points (bps) to 2.68% since March 2022. Client-based fee income (excluding brokerage) grew 2.5% y-o-y to RM211.9 million, driven by higher wealth management, foreign exchange sales and trade fees. Cost-to-income ratio was 44.1%.
Overall loans expanded by 6.2% y-o-y with SME and consumer banking loans growing by 12.9% and 3.5% y-o-y respectively. Meanwhile, customer-based funding grew 7.9% in-year and saw a shift towards fixed deposits, which increased by 4.6%. The bank’s CASA (current account savings accounts) ratio remained one of the highest in the industry at 45.8%.
The bank’s net credit cost for the period improved by 12.5 bps y-o-y to 20.0 bps. Loans under relief decreased to RM1.35 billion, representing 2.9% of the bank’s total loan book. Alliance Bank continues to provide support to customers who need further financial assistance.
Alliance Bank maintained its robust capital and liquidity positions with Common Equity Tier-1 (CET 1) ratio at 15.1% and Tier-1 Capital at 16.0% as at Dec 31, 2022. Total capital ratio was at 20.1%. The bank’s liquidity coverage ratio stood at 154.2%, and loan to fund ratio was 86.8%.
Alliance Bank Group CEO Kellee Kam said: “Alliance Bank has shown resilient growth particularly in the SME business where our market share has grown from 3.4% to 5% withinfour4 years.”
Alliance Bank made significant progress in its FY’23 sustainability goals. In the first nine months of the current financial year, the bank recorded RM4.9 billion in new sustainable banking business, exceeding its FY23 target of RM2.6 billion.
The bank has launched a BeESG sustainability campaign in collaboration with the United Nations Global Compact Network Malaysia and Brunei, Bursa Malaysia and Malaysian Green Technology and Climate Change Corporation.
“We want to create awareness, provide the necessary advice and enable our customers to adopt sustainable practices. We have recently concluded a large scale ESG survey among SMEs in Malaysia to understand the challenges and barriers to ESG adoption. We will be publishing these key insights soon to help SMEs on their sustainability journey,” said Kam.