Alliance Bank Malaysia Berhad reported its financial performance for the financial year ended 31 March 2026 (“FY2026”), with net profit after tax coming in at RM826.5 million, representing a 10.1% year-on-year increase, while revenue came in at RM2.47 billion, driven by growth in both net interest income (“NII”) and non-interest income.
NII of RM2.01 billion was driven primarily by higher loan volumes, while the net interest margin (“NIM”) stood at 2.34%. NOII grew 42.0% YOY to RM459.2 million. The cost-to-income ratio for the year stood at 47.9% as the Bank continued its investments in people and technology.
In FY2026, the Bank’s gross loans expanded 7.5% YOY, outpacing industry growth of 5.4%, supported by broad-based expansion across SME, commercial and consumer segments. Total gross loans and unrated bonds grew 9.0% YOY. SME loans increased 7.4% YOY, commercial loans grew 13.2%, while consumer loans expanded 9.0% YOY. Customer deposits grew 8.8% YOY, supported mainly by fixed deposit growth, while the Bank maintained one of the highest CASA ratios in the industry at 37.5%. Asset quality remains resilient, with the Bank’s gross impaired loans (“GIL”) ratio improving to 1.73%, compared to 1.83% a year earlier. The Bank also maintained healthy liquidity and capital positions, with the liquidity coverage ratio (“LCR”) at 158.5%, while Common Equity Tier-1 (“CET1”) and total capital ratios strengthened to 13.2% and 17.6%, respectively.
The bank proposed a second interim dividend of 9.74 sen per share, bringing the total dividend for FY2026 to 19.1 sen per share and translating to a dividend payout ratio of 40%.
