Alliance Bank Malaysia Bhd’s net profit after tax for the nine months ended Dec 31, 2024 (9M25), increased by 7.9% year-on-year (YoY) to RM553.2 million compared to RM512.7 million in 9M24.
In a Bursa filing, Alliance Bank said the growth was primarily driven by the increased revenue after taking into account higher allowance for expected credit losses and operating expenses (opex).
Net interest income (NII) in 9M25 rose 13.9% YoY, driven by higher loan volumes while net interest margin (NIM) for the period was at 2.46% compared to 2.48% in 9M24.
The group reported that the non-interest income (NOII) performed well, growing 11% YoY 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 also improved to 46.8% which led to a revenue growth of 13.5% YoY to RM1.7 billion, outpacing the 10.1% increase in opex due to continued investments in people and technology.
In terms of the financial results for the third quarter ended Dec 31, 2024 (3Q25), Alliance Bank’s net profit after tax was 5.5% higher at RM186.67 million compared to RM176.86 million in 3Q24, mainly due to higher revenue offset with higher allowance for expected credit losses and opex.
Revenue for the quarter under review also rose 10% to RM561.28 million from RM509.92 million previously.
Other quarter-on-quarter performance highlights include NII increased by 11.8% to RM494.5 million due to higher loan growth, NIM was at 2.45% compared to 2.49% in 3Q24, other operating income decreased by RM0.9 million or 1.3% due to lower wealth management income and processing fees, offset by higher treasury and investment income and the opex increased by RM17.4 million or 7% resulting from higher establishment costs and marketing costs.
Going forward, the bank said it anticipates Malaysia’s economic advancement will continue to be bolstered by sustained domestic demand and renewed governmental efforts to stimulate growth.
“However, we maintain a cautious stance regarding potential downside risks to growth stemming from external uncertainties,” it said.
The bank said it remains optimistic of maintaining its positive financial performance and remains committed to realising growth objectives.
“In FY25, our focus areas include to continuing momentum in attracting more customers, and deepening client wallet share post-customer acquisition by enhancing product and channel offerings for key target segments and sectors in both consumer and business banking.
“Another area is to strengthen Islamic banking propositions to drive incremental growth, with a focus on scaling up differentiated Islamic banking solutions by expanding unique shariah-compliant and value-based Intermediation propositions,” it added.
