Alliance Bank Malaysia Bhd eased in early trade on May 25, slipping two sen to RM4.78 with about 326,000 shares changing hands, as cautious investor sentiment overshadowed its solid earnings performance amid a volatile global macro environment.
The softer tone came despite a strong FY26 showing, where net profit rose 10.1% to RM826.53 million, supported by a 42% jump in non-interest income and steady growth in net interest income. Revenue increased 8.65% to RM2.47 billion, reflecting broad-based gains across lending and fee-based businesses.
Fourth-quarter earnings also improved, with net profit rising 4.33% year-on-year to RM206.04 million and revenue up 5.3%, underpinned by resilient loan growth and stable credit quality.
The bank proposed a second interim dividend of 9.74 sen per share, bringing total FY26 payouts to 19.1 sen, representing a 40% payout ratio.
Looking ahead, Alliance Bank said FY27 marks a transition year as it moves from expansion under its Acceler8 strategy towards value realisation and operational refinement. Management highlighted stronger fundamentals, improved capital buffers and a more resilient operating platform to navigate near-term volatility.
On the balance sheet, gross loans rose 7.5%, outpacing industry growth, while deposits grew 8.8%, driven by fixed deposits. Asset quality improved, with gross impaired loans easing to 1.73%, while capital and liquidity positions remained solid.
However, net interest margin slipped to 2.34% from 2.45%, reflecting broader global pressure on banking spreads amid shifting interest-rate expectations and uneven monetary policy paths across major economies.
Despite strong domestic fundamentals, investor caution persists as global uncertainties, from rate trajectory shifts to geopolitical risks affecting capital flows, continue to shape sentiment across banking counters.
