KUALA LUMPUR: Alliance Bank Malaysia Bhd has reported an increase in net profit, reaching RM189.91 million for the second quarter ended September 30, 2024, surpassing the RM185.33 million net profit recorded in the same period last year. The bank’s revenue also saw an improvement, climbing to RM605.65 million from RM528.10 million.
According to BERNAMA News Agency, the first six months of the financial year ending March 31, 2025, showed a net profit growth to RM366.56 million, up from RM335.87 million in the previous year. Revenue for the period rose to RM1.15 billion compared to RM994.36 million the previous year. The bank attributed its performance to a 15 percent increase in net interest income, reaching RM955.9 million, driven by higher loan volumes and a net interest margin of 2.47 percent. Additionally, non-interest income grew by 16.1 percent to RM189.5 million, supported by gains in wealth management income, foreign exchange sales, trade fees, and treasury and investment income.
Moreover, Alliance B
ank reported a 14.8 percent year-on-year increase in loans, totaling RM59.1 billion, with all business segments achieving double-digit year-on-year growth. Small and medium enterprises (SME) loans grew by 16.4 percent, commercial loans by 16.2 percent, consumer loans by 14.3 percent, and corporate loans by 11.6 percent. The bank also noted a 13.8 percent year-on-year increase in customer deposits, underpinning its strong funding base. The current account saving account (CASA) ratio remains one of the industry’s highest at 40.9 percent.
In terms of shareholder returns, the bank declared a first single-tier interim dividend of 9.50 sen per share for the financial year ending March 31, 2025. The dividend is set to be paid on December 30, 2024, with a dividend entitlement date of December 13, 2024.
Looking ahead, the group expects Malaysia’s economic growth to be driven by sustained domestic demand, improvements in labor market conditions, and government initiatives to stimulate growth. However, it remains caut
ious due to potential downside risks related to external uncertainties, such as rising geopolitical tensions. The bank aims to maintain its loan growth momentum in FY2025 through integrated risk management practices and by strengthening its funding base. Additionally, it plans to invest further in upgrading its information technology infrastructure and digital capabilities to offer innovative solutions to clients.