Kuala lumpur: Alliance Bank Malaysia Bhd is cautiously optimistic about its financial performance for the fiscal year ending March 31, 2026 (FY2026), amid prevailing economic challenges, stated group chief executive officer Kellee Kam. The bank anticipates a double-digit growth rate in its loan portfolio, projecting an increase of between 8.0 per cent and 10.0 per cent for its consumer segment in FY2026, a decrease from the previous years’ growth rate of 12.0 per cent to 14 per cent.

According to BERNAMA News Agency, Kellee Kam expressed concerns about rising business costs and potential tariffs that could impact growth and asset quality. The implementation of an expanded Sales and Service Tax and pending finalization of United States tariffs add layers of uncertainty to the economic landscape. Despite these concerns, the bank remains hopeful due to a positive liquidity position supported by a recent 25 basis point cut in the overnight policy rate to 2.75 per cent, along with a lower unemployment rate and positive industrial and tourism indicators.

Kam further noted that these factors are expected to offset some of the economic headwinds, maintaining manageable asset quality throughout the year. He also mentioned that the bank anticipates a reduction in its net interest margin by 3.0 basis points due to the recent OPR cut, which still aligns with the current guidance of between 2.4 per cent and 2.45 per cent. This adjustment reflects an expected increase in business and lending activities, balanced carefully within the broader macroeconomic environment.