Alliance Bank Malaysia Berhad announced a 9.1% year-on-year increase in net profit to RM366.6 million for the first half of the financial year ending 31 March 2025 ("1HFY2025"). Revenue for this period rose 15.2% YOY to RM1.15 billion.
The performance it added was mainly driven by a 15.0% growth in net interest income to RM955.9 million, attributable to higher loan volumes, with a net interest margin of 2.47%. Non-interest income increased 16.1% to RM189.5 million, led by gains in wealth management income, foreign exchange sales, trade fees, and treasury and investment income. Cost-to-income ratio improved to 46.5%.
Loans continued to grow at 14.8% YOY to RM59.1 billion, with all business segments recording double- digit YOY growth: SME loans up 16.4%, Commercial loans up 16.2%, Consumer loans up 14.3% and Corporate loans up 11.6%. Customer deposits expanded 13.8% YOY, supporting Alliance Bank's healthy funding base. The CASA ratio remains one of the industry's highest at 40.9%. Operating expenses rose to RM532.9 million from RM476.8 million in the prior year, reflecting ongoing investments in people and technology for growth and efficiency initiatives. Notwithstanding this, the Bank's pre-provisioning operating profit increased by 18.4% to RM612.6 million.
Net credit cost for 1HFY2025 was 24.5 bps, while the Bank's loan loss coverage ratio stood at 112.1%. Alliance Bank continues to maintain strong capital and liquidity positions, with Common Equity Tier-1 ("CET 1") ratio of 12.4% and a total capital ratio of 17.1%. Liquidity coverage remained robust at 149.5% and the loan to fund ratio stood at 88.7%.
The Bank declared a first interim cash dividend of 9.50 sen per share, translating into a dividend payout ratio of 40%i
