Alliance Bank Malaysia Berhad reported a 12.5% growth in net profit after tax year-on-year to RM198.7 million for the first quarter of the financial year of 2026. This was on the back of a 14% YOY revenue growth to RM615.3 million.
The Bank’s net interest income grew 7.4% YOY from RM464.7 million to RM499.0 million, driven by higher loans volume, while net interest margin stood at 2.42%. Non-interest income rose 54.9% to RM116.3 million, primarily from higher foreign exchange sales and trade fees, strong treasury and investment income, and increased banking service fees.
The Bank’s cost-to-income ratio improved to 45.1 (from 51.6% in 4QFY2025 and 48.0% in 1QFY2025). Overall loans momentum continued with a 9.9% YOY growth, with broad-based
expansion across all business segments. SME loans rose 9.6%, consumer loans increased 11.2%, commercial loans were up 10.9%, and corporate loans recorded a 3.3% increase. Customer deposits strengthened by 12.5% YOY while maintaining one of the highest CASA ratios in the industry at 38.0%.
The 1QFY2026 net credit cost stood at 14.4 basis points, reflecting prudent provisioning,
while the Bank’s loan loss coverage ratio remained healthy at 113.3%. The Bank remains
well-capitalised with a Common Equity Tier-1 ratio (“CET1”) of 12.4% and a total capital
ratio of 16.9%. Liquidity coverage ratio was 162.6%, with a loan fund ratio at 87.2%.
Acceler8 2027 Strategy at Midpoint Delivers Across Segments
Now at the midpoint of its five-year Acceler8 2027 transformation journey, Alliance Bank
continues to deliver market share gains and sustainable growth across its eight strategic
pillars. The strategy, launched in January 2023, has strengthened the Bank’s position as
The Bank For Life, with progress tracking ahead of plan in most focus areas.
In 1QFY2026, the Bank maintained double-digit loan growth and expanded overall loan
market share to 2.73% (June 2024: 2.61%). SME market share advanced to 5.32%, while
business banking client fee income rose 17% YOY. Consumer loans rose 11.2% YOY,
with market share climbing to 2.29% driven by strong mortgage and credit card growth.
The Bank strengthened its regional presence in key economic corridors of Johor, Penang,
Sarawak and Sabah. Total loans and deposits in these regions rose 11% and 14% YOY
respectively, with Sarawak leading loan growth at 13% YOY and Penang posting an
impressive 33% YOY deposit growth.
The Islamic banking business recorded a 10% YOY revenue increase, supported by the
continued expansion of the flagship Halal in One programme. The capital markets
revenue surged by 86% YOY, driven by robust corporate finance deals.
Advancing Sustainability Commitments
The Bank continues to make significant strides as an ESG-driven organisation, delivering
positive impact and advancing its sustainability agenda. As of the first quarter of FY2026,
Alliance Bank has achieved a cumulative RM14.9 billion in new sustainable banking
business, keeping it on track to meet its RM15.0 billion target by FY2027 – one year ahead
of schedule.
Through the Sustainability Impact Programme (SIP), the Bank approved RM207 million
in loans during 1QFY2026 and expanded its Low Carbon Transition Facility (LCTF) to
finance a broader range of green initiatives beyond solar projects, including energy
efficiency, green buildings, and electric vehicles. Additionally, the Bank provided RM88.4
million in financing under the Corporate Green Power Purchase Programme in
collaboration with LBS Bina Holdings.
