Alliance Bank Malaysia Berhad reported a net profit after tax of RM150.5 million in the first quarter of the financial year ending 31 March 2024 (1QFY2024).
Net interest income rose 2.4% year-on-year (YOY) attributable to higher loans volume while net interest margin moderated to 2.43%. The Bank recorded a client-based fee income (excluding brokerage) at RM78.6 million.
Overall revenue stood at RM466.3 million while cost-to-income ratio was at 49.3%.
Overall loans growth continued its momentum, expanding 7.9% YOY to RM49.7 billion as SME, Commercial and Consumer Banking loans grew 13.4%, 11.7% and 7.1% YOY respectively.
Customer-based funding increased 6.5%, bolstered by a rise in fixed deposits. CASA ratio remained healthy and is among the highest in the industry at 43.9%.
Alliance Bank’s Acceler8 strategy is yielding positive results, evidenced by the acquisition of more than 3,000 new-to-bank business customers (representing a 40% YOY growth). In addition, SME loans grew by 11% YOY.
The Bank also intensified its cross-sell approach and established a business-to-business supply chain financing programme as part of the commitment to provide innovative products and services to serve businesses throughout their life cycle.
The Bank’s digital channels continue to contribute favourably towards its consumer banking growth.
Over 25,000 consumer customers were acquired during the period which is a 40% increase YOY. Alliance Bank’s Visa Virtual Credit Card (VCC) with Malaysia’s first dynamic card number feature bolstered the Bank’s credit card user base to 160,000 as at the end of July 2023 (+33% from the VCC launch in April 2023).
In line with the Bank’s focus of being an ESG-focused organisation, a total of RM177 million in financing was approved under the Alliance Bank Sustainability Assistance Programme, representing about 60% of the Bank’s FY2024 green financing target.
