KUALA LUMPUR: Alliance Bank Malaysia Bhd recorded a net profit after tax of RM553.2 million for the nine months ended Dec 31, 2024 (9M’25), representing a 7.9% year-on-year (y-o-y) growth.
Net interest income rose 13.9% y-o-y, driven by higher loan volumes while net interest margin stood at 2.46%. Non-interest income performed well, growing 11% y-o-y to RM256.3 million, driven by higher wealth management income, foreign exchange sales and trade fees, and treasury and investment income.
The cost-to-income ratio for the nine-month period improved to 46.8%, as revenue grew 13.5% y-o-y, outpacing the 10.1% increase in operating expenses due to continued investments in people and technology.
Overall loans expanded 14.2% y-o-y to RM61 billion, with strong growth across all core segments. SME and commercial loans grew 14.1% and 16.8% respectively while consumer banking loans increased 13.8% and corporate loans grew 13.5%.
Alliance Bank maintains a strong funding base, with customer deposits rising 13.3% y-o-y, mainly from fixed deposits which grew 26.1% y-o-y. The CASA ratio moderated to 39.4% but remained among the highest in the industry.
The 9M’25 net credit cost was 30.6 bps, reflecting a prudent pre-emptive provision of 8.2 bps. The loan loss coverage was at 110.9%.
The capital position of the bank remained sound with Common Equity Tier-1 ratio (CET 1) at 12.4%, Tier-1 Capital ratio at 13.6% and total capital ratio at 17.0%. The bank’s liquidity position is healthy, with a liquidity coverage ratio of 152.1% and loan to fund ratio of 88.4%.
As of 9M’25, cumulative new sustainable business reached RM14 billion, moving closer to the RM15 billion target set for FY27.