Alliance Bank Malaysia Berhad reported a 25.0% year-on-year increase in net profit after tax to RM248.3 million for the first quarter ended 30 June 2026 (“1QFY2027”), driven by broad-based loan growth, higher client-based fee income, a significantly lower net credit cost following better credit performance and recoveries from its corporate portfolio.
Total revenue rose 2.5% YOY and 6.4% quarter-on-quarter (“QOQ”) to RM630.9 million, driven by growth in both net interest income (“NII”) and non-interest income (“NOII”). NII expanded 2.5% YOY to RM511.7 million, driven primarily by higher loan volumes, with the net interest margin (“NIM”) standing at 2.26%. NOII rose 2.5% YOY to RM119.2 million, as Group wealth
management fees climbed 46.6% YOY and banking services fees grew 75.8% YOY.
Operating expenses increased 7.8% YOY on ongoing strategic investments in technology and talent under the Acceler8 strategy, bringing the cost-to-income ratio to 47.4%, within the Bank’s FY2027 guidance range and an improvement on the 47.9% recorded for FY2026.
In 1QFY2027, the Bank’s gross loans expanded 8.1% YOY to RM67.81 billion, while total gross loans and unrated bonds grew 9.5% YOY to RM69.33 billion, outperforming industry loan growth. Expansion was broad-based across segments, with commercial loans growing 19.1% YOY, corporate loans and unrated bonds rising 12.7% YOY, consumer loans increasing 7.8% YOY and SME loans expanding 6.4% YOY. Total assets grew 13.2% YOY to RM95.8 billion.
Customer deposits grew 8.4% YOY to RM70.5 billion, while the Bank maintained one of the highest CASA ratios in the industry at 37.7%. Asset quality remained manageable, with the gross impaired loans (“GIL”) ratio improving to 1.83% from 1.96% a year earlier. Net credit cost improved to 0.3 basis points from 14.4 basis points in 1QFY2026, driven by corporate recoveries,
while the SME, commercial and consumer portfolios continued to demonstrate resilience.
The loan loss coverage ratio stood at 112.9%. The Bank continues to maintain sound liquidity and capital positions, with the liquidity coverage ratio (“LCR”) at 129.3%, loan-to-fund ratio at 87.7%, net stable funding ratio at 116.3%, Common Equity Tier-1 (“CET1”) ratio at 13.0% and Total Capital Ratio at 17.4%.
